To give effect to Recommendation of 45th GST Council meeting CBIC has issued 22 GST Rate Notifications on 30.09.2021. Notifications amends GST Rate on Services and Goods, Exempts certain services and Goods from GST, notified RCM applicability on supply of mentha oil by unregistered person to registered person and imposed Compensation Cess on Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice w.e.f October 01, 2021. Detailed Analysis is as follows:-

1. Changes in GST Rates on Services w.e.f October 1, 2021

The CBIC vide Notification No. 06/2021 Central Tax (Rate) dated September 30, 2021 has further amended Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017 (“Services rate notification”), in order to adhere to the recommendations of 45th GST Council meeting held on September 17, 2021 as under:

1. Wherever Section 12AA of Income Tax Act, 1961 is mentioned, now Section 12AB is also inserted.

2. Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property right (“IP right”), shall now be charged at rationalised rate of 18%. Earlier, IP right w.r.t. Information Technology software were charged at 18% and IP right w.r.t. other goods were chargeable at 12%.

GST Notifications on calendar schedule for alarm

3. Services by way of job work in relation to manufacture of alcoholic liquor for human consumption shall be taxable at 18%. Earlier, it was covered under Entry 26, item no. (i)(f), as food and food products and GST rate was 5%.

4. Services by way of printing of all goods falling under Chapter 48 or 49 [including newspapers, books (including Braille books), journals and periodicals], shall now be charged at rationalised rate of 18% instead of 12%.

5. Against serial number 34, for items (iii) and (iiia) and the entries relating thereto in columns (3), (4) and (5), following items and entries shall be substituted, namely:-

Description of Service Rate (per cent.) Condition
“(iii) Services by way of admission to;

(a) theme parks, water parks and any other place having joy rides, merry- go rounds, go carting, or

(b) ballet, –

other than any place covered by (iiia) below

9
(iiia) Services by way of admission to (a) casinos or race clubs or any place having casinos or race clubs or (b) sporting events like Indian Premier League 14

6. In the “Annexure: Scheme of Classification of Services”, after serial number 118 and the entries relating thereto, the following shall be inserted, namely:-

S. No. Chapter, Section, Heading or Group Service Code

(Tariff)

Service Description
118a Group 99654 Multimodal Transport of goods from a place in India to another place in India
118b 996541 Multimodal Transport of goods from a place in India to another place in India

Note: This Notification is effective from October 01, 2021.

Similar notification has been passed under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”) and all States will issue relevant Notification to give effect to GST Rates changes on Services on similar line.

CGST (Rate) Notification: CBIC notifies CGST Rate on various services WEF 01.10.2021

IGST (Rate) Notification: CBIC notifies IGST Rate on various services WEF 01.10.2021

UTGST (Rate) Notification: CBIC notifies UTGST Rate on various services WEF 01.10.2021

2. Certain Services exempted w.e.f October 1, 2021

The CBIC vide Notification No. 07/2021 Central Tax (Rate) dated September 30, 2021 has further amended Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017 (“Services exemption notification”), in order to adhere to the recommendations of 45th GST Council meeting held on September 17, 2021 as under:

1. Entry No. 1: Services by an entity registered under section 12AA of the Income-tax Act, 1961 by way of charitable activities. Now Section 12AB has also been inserted.

2. Entry No. 9AA: Services provided by and to Fédération Internationale de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020 to be hosted in India whenever rescheduled.

3. After serial number 9AA , S. No. 9AB is being inserted to exempt following services as under

Sl. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition
9AB Chapter 99 Services provided by and to Asian Football Confederation (AFC) and its subsidiaries directly or indirectly related to any of the events under AFC Women’s Asia Cup 2022 to be hosted in India NIL Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under AFC Women’s Asia Cup 2022

4. Against serial numbers 9D and 13, in column (3), after the figures and letters “12AA”, the word, figures and letters “or 12AB” shall be inserted;

a. Amended S. No. 9D: “Services by an old age home run by Central Government, State Government or by an entity registered under section 12AA or 12AB of the Income-tax Act, 1961 (43 of 1961) to its residents (aged 60 years or more) against consideration……..”

b. Amended S. No. 13: “Services by a person by way of-

(a) conduct of any religious ceremony;

(b) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA or 12AB of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) or a trust or an………..”

5. Entry No. 19A and 19B: Validity of GST exemption on transport of goods by vessel and air from India to outside India is extended upto September 30, 2022. Earlier it was exempted till September 30, 2021.

6. Entry No 43 omitted: Exemption withdrawn on “Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by the Indian Railways Finance Corporation to Indian Railways.”

7. Entry No. 61A inserted: Services by way of grant of National Permit to goods carriages on payment of fee is exempted. Earlier it was taxable at 18%.

8. Entry No. 72: Skill Training for which Government bears 75% or more of the expenditure. Presently exemption applies only if Government funds 100%.

9. Against serial numbers 74A and 80, in column (3), after the figures and letters “12AA”, the word, figures and letters “or 12AB” shall be inserted;

i. Amended S. No. 74A:Services provided by rehabilitation professionals recognised under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA or 12AB of the Income-tax Act, 1961

ii. Amended S. No. 80:Services by way of training or coaching in recreational activities relating to-

a. arts or culture, or

b. sports by charitable entities registered under section 12AA or 12AB of the Income-tax Act.”

10. Entry 82B inserted: Services by way of right to admission to the events organised under AFC Women’s Asia Cup 2022. Earlier it was taxable at 18%.

Note: This Notification is effective from October 01, 2021.

Barring Entry No. 19A and 19B, similar notification has been passed under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”) and all States will issue relevant Notification to give supra changes in Services exemption on similar line.

CGST (Rate) Notification: Changes in CGST exemption on Supply of services WEF 01.10.2021

IGST (Rate) Notification: Changes in IGST exemption on Supply of services WEF 01.10.2021

UTGST (Rate) Notification: Changes in UTGST exemption on Supply of services WEF 01.10.2021

3. Changes in GST Rates on Goods w.e.f October 01, 2021

The CBIC vide Notification No. 08/2021 Central Tax (Rate) dated September 30, 2021 has further amended Notification No. 01/2017-Central Tax (Rate) dated June 28, 2017 as amended from time to time, in order to adhere to the recommendations of 45th GST Council meeting held on September 17, 2021 as under:

S. No. Description From To
GST rate changes
1. Retro fitment kits for vehicles used by the disabled Appl. rate 5%
2. Tamarind seeds meant for any use other than sowing Appl. rate 5%
3. Medicine Keytruda for treatment of cancer 12% 5%
4. Biodiesel supplied to OMCs for blending with Diesel 12% 5%
5. Iron ores and concentrates, including roasted iron pyrites. 5% 18%
6. Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20% or more, calculated on the dry weight. 5% 12%
7. Copper ores and concentrates. 5% 18%
8. Nickel ores and concentrates. 5% 18%
9. Cobalt ores and concentrates 5% 18%
10. Aluminium ores and concentrates. 5% 18%
11. Lead ores and concentrates. 5% 18%
12. Zinc ores and concentrates. 5% 18%
13. Tin ores and concentrates. 5% 18%
14. Chromium ores and concentrates 5% 18%
15. Following renewable energy devices and parts for their manufacture: –

(a) Bio-gas plant;

(b) Solar power-based devices;

(c) Solar power generator;

(d) Wind mills, Wind Operated Electricity Generator (WOEG);

(e) Waste to energy plants / devices;

(f) Solar lantern / solar lamp;

(g) Ocean waves/tidal waves energy devices/plants;

(h) Photo voltaic cells, whether or not assembled in modules or made up into panels.

Explanation:- If the goods specified in this entry are supplied, by a supplier, along with supplies of other goods and services, one of which being a taxable service specified in the entry at S. No. 38 of the Table mentioned in the notification No. 11/2017-Central Tax (Rate), dated 28th June, 2017 [G.S.R. 690(E)], the value of supply of goods for the purposes of this entry shall be deemed as seventy percent of the gross consideration charged for all such supplies, and the remaining thirty percent of the gross consideration charged shall be deemed as value of the said taxable service.”;

5% 12%
16.

Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres; box files, letter trays, and similar articles, of paper or paperboard of a kind used in offices, shops or the like

12%/18% 18%
17. Waste, Parings and Scrap, of Plastics 5% 18%
18.

Plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, being originals drawn by hand; hand-written texts; photographic reproductions on sensitised paper and carbon copies of the foregoing

12% 18%
19.

Unused postage, revenue or similar stamps of current or new issue in the country in which they have, or will have, a recognised face value; stamp-impressed paper; banknotes; cheque forms; stock, share or bond certificates and similar documents of title (other than Duty Credit Scrips).

12% 18%
20. Transfers (decalcomanias). 12% 18%
21.

Printed or illustrated postcards; printed cards bearing personal greetings, messages or announcements, whether or not illustrated, with or without envelopes or trimmings.

12% 18%
22.

Calendars of any kind, printed, including calendar blocks.

12% 18%
23.

Other printed matter, including printed pictures and photographs; such as Trade advertising material, Commercial catalogues and the like, printed Posters, Commercial catalogues, Printed inlay cards, Pictures, designs and photographs, Plan and drawings for architectural engineering, industrial, commercial, topographical or similar purposes reproduced with the aid of computer or any other devices

12% 18%
24.

Ball point pens; felt tipped and other porous tipped pens and markers; fountain pens; stylograph pens and other pens; duplicating stylos; pen holders, pencil holders and similar holders; parts (including caps and clips) of the foregoing articles, other than those of heading 9609.

12%/18% 18%
25. Railway parts, locomotives & other goods in Chapter 86 12% 18%
26. Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice 18% 28%

Note: This Notification is effective from October 01, 2021.

Similar notification has been issued under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”) and all States will issue relevant Notification to give effect to GST Rates changes on Goods on similar line.

CGST (Rate) Notification: Changes in CGST Rate on Certain Goods WEF 01.10.2022

IGST (Rate) Notification: Changes in IGST Rate on Certain Goods WEF 01.10.2022

UTGST (Rate) Notification: Changes in UTGST Rate on Certain Goods WEF 01.10.2022

4. CBIC clarifies that, Seeds, fruit and spores, of a kind used for “sowing” only shall be exempted

The CBIC vide Notification No. 09/2021 Central Tax (Rate) dated September 30, 2021 has further amended Notification No. 02/2017-Central Tax (Rate) dated June 28, 2017 (“Goods exemption notification”), in order to adhere to the recommendations of 45th GST Council meeting held on September 17, 2021.

An explanation has been inserted at S. no. 86 in the Goods exemption notification to clarify that, “Seeds, fruit and spores, of a kind used for sowing” only shall be exempted and it does not cover seeds meant for any use other than sowing.

Note: This notification shall be effective from October 01, 2021.

Similar notification has been passed under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”).

CGST (Rate) Notification: CGST Exemption on Seeds, fruit & spores used for sowing wef 01.10.2021

IGST (Rate) Notification: IGST Exemption on Seeds, fruit & spores used for sowing wef 01.10.2021

UTGST (Rate) Notification: UTGST Exemption on Seeds, fruit & spores used for sowing wef 01.10.2021

5. CBIC notified RCM applicability on supply of mentha oil by unregistered person to registered person

The CBIC vide Notification No. 10/2021-Central Tax (Rate) dated September 30, 2021 has further amended Notification No. 04/2017-Central Tax (Rate) dated June 28, 2017 (“the RCM notification for goods”), in order to adhere to the recommendations of 45th GST Council meeting held on September 17, 2021.

In the RCM notification for goods, in the Table, after S. No. 3 and the entries relating thereto, the following serial number and the entries shall be inserted, namely

S. No Tariff item, sub-heading, heading or Chapter Description of supply of Goods Supplier of goods Recipient of supply
” 3A. 33012400,

33012510,

33012520, 33012530, 33012540

Following essential oils other than those of citrus fruit namely: –

a) Of peppermint (Mentha piperita);

b) Of other mints : Spearmint oil (ex-mentha spicata), Water mint-oil (ex-mentha aquatic), Horsemint oil (ex-mentha sylvestries), Bergament oil (ex-mentha citrate).

Any Unregistered Person Any Registered Person

In effect, Supply of supra mentioned mentha oil by unregistered person to registered person shall be taxable under RCM as per Section 9(3) of CGST Act, 2017.

Note: This Notification shall be effective from October 01, 2021.

Similar notifications have been passed under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”).

CGST (Rate) Notification: CGST payable under RCM on essential oils other than those of citrus fruit wef 01.10.2021

IGST (Rate) Notification: IGST payable under RCM on essential oils other than those of citrus fruit wef 01.10.2021

UTGST (Rate) Notification: UTGST payable under RCM on essential oils other than those of citrus fruit wef 01.10.2021

6. CBIC reduces rate of GST on Fortified Rice Kernel (Premix) supply for ICDS or similar scheme for free distribution to economically weaker sections of the society

The CBIC vide Notification No. 11/2021 Central Tax (Rate) dated September 30, 2021 has amended Notification No. 39/2017-Central Tax (Rate) dated October 18, 2017 (“the Principal Notification”) in order to adhere to the recommendations of 45th GST Council meeting held on September 17, 2021. The following entry has been inserted in the Principal Notification:

“(b) Fortified Rice Kernel (Premix) supply for ICDS or similar scheme duly approved by the Central Government or any State Government.”

Further, in column (4), in the entry, for the words “food preparations” at both the places, where they occur, the word “goods” shall be substituted.

In effect, Fortified Rice Kernel (Premix) supply for ICDs or similar scheme duly approved by the Central Government or any State Government shall be taxable at 5%, if condition of production of certificate to the effect that such goods have been distributed free to the economically weaker sections of the society, is satisfied.

Note: This Notification shall be effective from October 01, 2021

Similar notifications have been passed under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”).

CGST (Rate) Notification: Reg. CGST on Food for free distribution to economically weaker sections

IGST (Rate) Notification: Reg. IGST on Food for free distribution to economically weaker sections

UTGST (Rate) Notification: Reg. UTGST on Food for free distribution to economically weaker sections

7. CBIC extends concessional rate benefit to specified drugs used in COVID treatment till December 31, 2021

The CBIC vide Notification No. 12/2021-Central Tax (Rate) dated September 30, 2021 has, further extended the duration of concessional rate benefit on specified drugs used in COVID treatment as well as further reduces GST rate on other specified drugs used in COVID treatment in order to adhere to the recommendations of 45th GST Council meeting held on September 17, 2021 as under:

A. Extension of existing concessional GST rates on following Covid-19 treatment drugs, up to December 31, 2021 from September 30, 2021, namely-

i. Amphotericin B – Nil

ii. Remdesivir – 5%

iii. Tocilizumab – Nil

iv. Heparin (anti-coagulant) – 5%

B. Further reduction of GST rate to 5% on other Covid-19 treatment drugs, valid up to December 31, 2021, namely-

i. Itolizumab

ii. Posaconazole

iii. Infliximab

iv. Favipiravir

v. Casirivimab & Imdevimab

vi. 2-Deoxy-D-Glucose

vii. Bamlanivimab & Etesevimab

This notification shall come into force from the October 01, 2021 and remain in force December 31, 2021.

Similar notifications have been passed under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”).

CGST (Rate) Notification: CGST exemption on specified medicines used in COVID-19

IGST (Rate) Notification: IGST exemption on specified medicines used in COVID-19

UTGST (Rate) Notification: UTGST exemption on specified medicines used in COVID-19

8. Compensation Cess to be levied on Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice w.e.f October 01, 2021

The CBIC vide Notification No. 01/2021 Compensation Cess (Rate) dated September 30, 2021 has further amended Notification No. 01/2017- Compensation Cess (Rate) dated June 28, 2017 as amended from time to time, in order to adhere to the recommendations of 45th GST Council meeting held on September 17, 2021.

Compensation cess has been levied on ‘Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice’ falling under tariff heading 2202 at 12% in addition to 28% GST.

Note: This notification is effective from October 01, 2021.

This Notification can be accessed at: GST Compensation Cess on Carbonated Beverages of Fruit Drink /Juice imposed

*****

(Author can be reached at [email protected])

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.

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One Comment

  1. Suresh Babu says:

    With these notification, If Printer uses his own paper for the purpose printing on intangible input provided by the customer, it would fall under composite service and the printing service being a predominant supply of service will attract GST under Ch 9989 with GST rate of 18%. Ideally it is better for the printer to sell paper to client and then take the same as jobwork and charge [email protected] 5, 12 and 18% res under Ch 9988.

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