Notification No. 22/2021 – Integrated Tax (Rate) Update

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Notification No. 22/2021 - Integrated Tax (Rate): Seeks to supersede notification 15/2021- IT(R) dated 18.11.2021 and amend Notification No 8/2017- Integrated Tax (Rate) dated 28.06.2017.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]

G.S.R (E).- In exercise of the powers conferred by sub-sections (1), (3) and (4) of section 5, subsection (1) of section 6 and clauses (iii), (iv) and (xxv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (5) of section 15, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government,

on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council , and in supersession of notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 15/2021 – Integrated Tax (Rate), dated the 18^th November, 2021, published in the Gazette of India,

Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 808(E), dated the 18^th November, 2021, hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 683(E), dated the 28th June, 2017, namely:-

In the said notification, in the TABLE, against serial number 3,-

in column (3), in the heading “Description of Service”, in items (iii),(vi),(ix) and (x), for the words and symbols “Union territory, a local authority, a Governmental Authority or a Government Entity” the words and symbols “Union territory or a local authority” shall be substituted;

in column (3), in the heading “Description of Service”, in item (vii), for the words and symbols “Union territory, local authority, a Governmental Authority or a Government Entity” the words and symbols “Union territory or a local authority” shall be substituted;

in column (5), in the heading “Condition” ,the entries against items (iii),(vi),(vii),(ix) and (x), shall be omitted.

2. This notification shall come into force with effect from the 1st day of January, 2022.

(Gaurav Singh)
Deputy Secretary to the Government of India

Note: -The principal notification No. 08/2017 - Integrated Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 683 (E), dated the 28th June, 2017 and last amended by notification No. 06/2021-Integrated Tax (Rate), dated the 30^th September, 2021 vide number G.S.R. 689 (E), dated the 30^th September ,2021.

📚 Frequently Asked Questions (FAQs): Notification No. 22/2021 - Integrated Tax (Rate)

Q1: What is Notification No. 22/2021 – Integrated Tax (Rate)?

Answer:
Issued on 31st December 2021, this notification supersedes Notification No. 15/2021 – Integrated Tax (Rate) and amends Notification No. 8/2017 – Integrated Tax (Rate). It modifies GST applicability for certain services, especially those provided to Union territories and local authorities. 📜

Q2: Which earlier notifications are affected?

Answer:
Notification 15/2021 – IT(R) (18th November 2021) is superseded.
Notification 8/2017 – IT(R) (28th June 2017) is amended.
This ensures consistency in GST exemptions related to government-linked services. ✅

Q3: What change was made in the service description under this notification?

Answer:
The words “Union territory, a local authority, a Governmental Authority or a Government Entity” have been substituted with “Union territory or a local authority” in multiple entries [(iii), (vi), (vii), (ix), and (x)].

Q4: What happened to the “conditions” specified earlier?

Answer:
The conditions column (5) against items (iii), (vi), (vii), (ix), and (x) has been completely omitted. This simplifies GST applicability by removing conditional clauses. ✂️

Q5: Why was this amendment introduced?

Answer:
To narrow the scope of GST exemptions.
To exclude Governmental Authorities and Government Entities from certain service exemptions.
To align tax treatment with the GST Council’s recommendations.

Q6: From when is this notification effective?

Answer:
The amendment is effective from 1st January 2022. Businesses providing services to Governmental Authorities or Entities needed to update GST compliance immediately. 📅

Q7: What is the impact on service providers?

Answer:
Services to Union territories or local authorities may still be exempt.
Services to Government Authorities and Entities may now become taxable.
👉 This could increase GST liability for contractors, consultants, and vendors serving government-linked projects.

Q8: How does this notification tie to GST Council’s overall agenda?

Answer:
It reflects GST Council’s effort to:
✔ Streamline exemptions.
✔ Prevent misuse of concessional entries.
✔ Ensure better revenue flow by taxing Governmental Authorities and Entities while still supporting Union territories & local bodies.

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