Key Amendment in Indirect Taxation:
The Central Government, based on Council recommendations, introduces a crucial amendment under the IGST Act, 2017, superseding the previous notification.
Revision in Integrated Tax Rates:
Omission of serial number 225 in Schedule I (5%) and addition of a new entry in Schedule II (12%) for footwear not exceeding Rs.1000 per pair.
Effective Date - January 1, 2022:
The amended rates and classifications become effective from January 1, 2022, providing businesses time to adapt to the changes.
Focused on Footwear Taxation:
The specific inclusion of footwear with a sale value not exceeding Rs.1000 per pair at the 12% tax rate addresses nuances in the taxation of such products.
Supersession of Previous Notification:
The amendment supersedes the previous notification (No.14/2021- Integrated Tax (Rate), dated November 18, 2021) for a streamlined and updated tax structure.
Government's Commitment to Clarity:
The revision showcases the government's commitment to providing clarity and alignment with industry dynamics in indirect tax regulations.
Deputy Secretary's Approval:
The notification, signed by Deputy Secretary Gaurav Singh, signifies government authority in enacting tax amendments for smoother economic operations.