GST - IMPORTANT CHANGES FROM 1st OCOTBER 2021

On the recommendations of GST Council, the Government of India, Ministry of Finance

(Department of Revenue) has issued several notifications effecting changes in rates of GST on
certain services and goods in Notification Nos. 06 to 12 /2021-Central Tax (Rate) dated 30-09-
2021 giving effect from 01-10-2021. All these notifications make amendments to the previous
Notifications issued at the time of introduction of GST and such notifications issued on 29-06-
2017. These are discussed somewhat in detail, goods, services and various industries wise as
follows:

GST Rates as per Notification no. 06/2021-Central Tax (Rate)

This notification prescribes rates of GST on services.

1. Intellectual Property (IP) right

Previously, there was a distinction in the tax rate that applied to temporary or permane
nt transfer, or allowing the use or enjoyment of Intellectual Property (IP) between the it
ems (other than software) and the IP related to software. The disparity in reference to
the applicable tax rate has now been removed, the rate is-

Description Rate

Temporary or permanent transfer or permitting

18%
the use or enjoyment of Intellectual Property (IP) right

2.Job-work (alcohol)

The relevant rate of tax on job work activities in relation to the manufacture of alcoholic
liquor for human use was controversial. The tax rate was 5% if alcoholic liquor for
human consumption was equated with food products. In this regard, the following new
entry has been added :

Description Rate

Services by way of job work in relation to manufacture

18%
of alcoholic liquor for human consumption

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3. Publishing and Printing services

12 percent concessional rate of tax applies to printing services for all goods falling under
Chapter 48 or 49 [including newspapers, books (including Braille books), journals, and
periodicals], which are subject to CGST at 6%, 2.5 percent, or nil, where the publisher
only supplies the content and the physical inputs, such as paper used for printing, are
owned by the publisher. All such services will now be taxed at a rate of 18 percent.

Description Rate

Other manufacturing services; publishing

, printing and reproduction services; material 18%

recovery services

4. Amusement parks industry

Previously, there was misunderstanding over the applicable tax rate (i.e. 18% or 28%)
for the supply of services such as entrance to various amusement parks, casinos, race
clubs, or athletic events such as the IPL. The following entries have now been replaced
as follows:

Description GST Rates

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, – 18%
other than any place covered by (iiia) below

Services by way of admission to (a) casinos or

race clubs or any place having casinos or race clubs 28%
or (b) sporting events like Indian Premier League.

2. GST Rates as per Notification no. 07/2021-Central Tax (Rate)

1. Charitable entities

Previously, certain specified services provided by/to organisations registered under

section 12AA of the Income Tax Act, 1961 were exempt or charged at a reduced rate of
tax. Due to the insertion of Sec. 12AB into the Income Tax Act of 1961 (requiring
charitable entities to get registration under the said new provision), an issue arose
regarding GST exemptions/ concessions that were still tied to Sec. 12AA and not Sec.

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12AB. The aforementioned inconsistency has now been rectified by referencing Sec.
12AB in the following entries-

Description GST Rates

Composite supply of works contract as defined

in clause (119) of section 2 of the Central Goods
and Services Tax Act, 2017, {other than that
covered by items (i), (ia), (ib), (ic), (id), (ie)
and (if) above} supplied by way of construction
, erection, commissioning, installation, completion,
fitting out, repair, maintenance, renovation, or
alteration of,-(g) a building owned by an entity 12%
registered under section 12AA or 12AB of the
Income Tax Act, 1961 (43 of 1961), which is used
for carrying out the activities of providing, centralized
cooking or distribution, for mid-day meals under the
mid-day meal scheme sponsored by the Central Government
, State Government, Union territory or local authorities.

Services by an entity registered under section 12AA or 12AB Nil

of the Income-tax Act, 1961 (43 of 1961) by way of charitable activities.

Services by an old age home run by Central

Government, State Government or by an
entity registered under section 12AA or 12AB
Nil
of the Income-tax Act, 1961 (43 of 1961) to its
residents (aged 60 years or more) against consideration
upto twenty-five thousand rupees per month per
member, provided that the consideration charged is i
inclusive of charges for boarding, lodging and maintenance.

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
Nil
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 (43 of 1961).

Services by way of training or coaching in

recreational activities relating to- (a) arts or culture, Nil
or (b) sports by charitable entities registered
under section 12AA or 12AB of the Income-tax Act.

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3. Transport Industry

Exemption has been granted to the services by way of granting National Permit to a
goods carriage to operate throughout India / contiguous States.

4. Government Training Programmes

Exemption has been granted to the supply provided to the Central Government, State
Government, Union territory administration under any training programme for which
75% or more of the total expenditure is borne by the Central Government, State
Government, Union territory administration.

3. GST Rates as per Notification No. 8/2021-Central Tax (Rate)

1. Renewable energy industry

The rate of tax for the following goods have been increased from 5% to 12%-

Chapter,
Heading,
Description Rate
Subheading or
Tariff item

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
84, 85 or 94 specified in this entry are supplied, by a supplier, along with 12%
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
per cent. of the gross consideration charged for all such supplies,
and the remaining thirty per cent. of the gross consideration

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 charged shall be deemed as value of the said taxable service.

2. Railway industry

The rate of tax for the following goods have been increased from 12% to 18%

Chapter, Heading,
GST
Subheading or Description of Goods
Rates
Tariff item

Rail locomotives powered from an external source of electricity or by

8601 18%
electric accumulators.

Other rail locomotives; locomotive tenders; such as Diesel electric

8602 18%
locomotives, Steam locomotives and tenders thereof

Self-propelled railway or tramway coaches, vans and trucks, other

8603 18%
than those of heading 8604.

Railway or tramway maintenance or service vehicles, whether or not

8604 self-propelled (for example, workshops, cranes, ballast tampers, 18%
track liners, testing coaches and track inspection vehicles).

Railway or tramway passenger coaches, not self-propelled; luggage

vans, post office coaches and other special purpose railway or
8605 18%
tramway coaches, not self-propelled (excluding those of heading
8604).

8606 Railway or tramway goods vans and wagons, not self-propelled. 18%

Parts of railway or tramway locomotives or rolling-stock; such as

8607 18%
Bogies, bissel-bogies, axles and wheels, and parts thereof.

Railway or tramway track fixtures and fittings; mechanical (including

electro-mechanical) signalling, safety or traffic control equipment for
8608 18%
railways, tramways, roads, inland waterways, parking facilities, port
installations or airfields; parts of the foregoing.”;

3. Packaging industry

The rate of tax for the following goods have been increased from 12% to 18%:

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Chapter, Heading,
Subheading or Description of Goods Rate
Tariff item

Cartons, boxes, cases, bags and other packing containers, of paper,

paperboard, cellulose wadding or webs of cellulose fibres; box files,
4819 18%
letter trays, and similar articles, of paper or paperboard of a kind
used in offices, shops or the like.

5. Printing industry

The rate of tax for the following goods have been increased from 12% to 18% :

Chapter,
Heading,
Description of Goods Rate
Subheading or
Tariff item

Plans and drawings for architectural, engineering, industrial, commercial,

topographical or similar purposes, being originals drawn by hand; hand-
4906 00 00 18%
written texts; photographic reproductions on sensitised paper and
carbon copies of the foregoing.

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;
4907 stamp-impressed paper; banknotes; cheque forms; stock, share or bond 18%
certificates and similar documents of title (other than Duty Credit
Scrips).

4908 Transfers (decalcomanias). 18%

Printed or illustrated postcards; printed cards bearing personal

4909 greetings, messages or announcements, whether or not illustrated, with 18%
or without envelopes or trimmings.

4910 Calendars of any kind, printed, including calendar blocks 18%

Other printed matter, including printed pictures and photographs; such

as Trade advertising material, Commercial catalogues and the like,
4911 printed Posters, Commercial catalogues, Printed inlay cards, Pictures, 18%
designs and photographs, Plan and drawings for architectural
engineering, industrial, commercial, topographical or similar purposes

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 reproduced with the aid of computer or any other devices.

6. Pen industry

The rate of tax for the following goods have been increased from 12% to 18% :

Chapter, Heading,
Subheading or Description of Goods Rate
Tariff item

Ball point pens; felt tipped and other porous-tipped pens and markers;
fountain pens; stylograph pens and other pens; duplicating stylos; pen
9608 18%
holders, pencil holders and similar holders; parts (including caps and
clips) of the foregoing articles, other than those of heading 9609.

7. Carbonated Fruit Drink industry

Hitherto there was confusion as regards the applicable rate of tax on the Carbonated
Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice. Now the following
entry has been inserted :

Chapter, Heading, Subheading or

Description of Goods Rate
Tariff item

Carbonated Beverages of Fruit Drink or Carbonated

2202 28%
Beverages with Fruit Juice.

8. Mining industry

The rate of tax for the following goods have been increased from 5% to 18%:

Chapter, Heading,
Subheading or Tariff Description of Goods Rate
item

2601 Iron ores and concentrates, including roasted iron pyrites. 18%

Manganese ores and concentrates, including ferruginous

2602 manganese ores and concentrates with a manganese content of 18%
20% or more, calculated on the dry weight.

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2603 Copper ores and concentrates. 18%

2604 Nickel ores and concentrates. 18%

2605 Cobalt ores and concentrates. 18%

2606 Aluminium ores and concentrates. 18%

2607 Lead ores and concentrates. 18%

2608 Zinc ores and concentrates. 18%

2609 Tin ores and concentrates. 18%

2610 Chromium ores and concentrates. 18%

9. Agriculture Industry

Tamarind seeds meant for any use other than sowing will attract the tax @ 5%.

10. Bio-diesel industry

Hitherto the applicable rate of tax on bio-diesel was 12%. Now two separate entries
have been inserted in this regard as under:

Description Rate

Bio-diesel supplied to Oil Marketing Companies for blending with High Speed Diesel 5%

Bio-diesel (other than bio-diesel supplied to Oil Marketing Companies for blending with
12%
High Speed Diesel)

11. Export freight (for exporters)

The exemption in existence as regards the export freight has been extended till
30.09.2022. The amended entries read as under :

Description Rate

Services by way of transportation of goods by an aircraft from customs station Nil (till
of clearance in India to a place outside India 30.09.2022)

Services by way of transportation of goods by a vessel from customs station of Nil (till

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clearance in India to a place outside India. 30.09.2022)

4. Notification No. 10/2021 – -Central Tax (Rate)

1. Oil Specific Industry

Goods added to RCM list where registered person need to pay tax on purchasing from
un registered person.

Tariff item, sub-

Supplier of Recipient of
heading, heading Description of Goods
goods supply
or Chapter

Following essential oils other than those of

33012400, citrus fruit namely: –
33012510, a) Of peppermint (Menthapiperita); Any Any
33012520, b) Of other mints : Spearmint oil Unregistered Registered
33012530, (exmenthaspicata), Water mint-oil (exmentha Person Person.
33012540 aquatic), Horsemint oil (exmenthasylvestries),
Bergament oil (ex-mentha citrate).

5. GST Rates as per Notification No. 11/2021 -Central Tax (Rate)

Fortified Rice Kernel (Premix) supply for ICDS or similar scheme duly approved by the Central
Government or any State Government will attract 5% GST Rate

6. GST Rates as per Notification No. 12/2021-Central Tax (Rate)

1. Pharmaceutical industry

The concessional rates/ exemptions have been granted on the specified goods as under
( till 31.12.2021) :

Chapter, Heading, Subheading or Tariff item Description of Goods Rate

30 Tocilizumab Nil

30 Amphotericin B Nil

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30 Remdesivir 5%

30 Heparin (anti-coagulant) 5%

30 Itolizumab 5%

30 Posaconazole 5%

30 Infliximab 5%

30 Bamlanivimab & Etesevimab 5%

30 Casirivimab & Imdevimab 5%

30 2-Deoxy-D-Glucose 5%

30 Favipiravir 5%

Similar Notifications No. 06/2021 to 12/2021 have also been issued for effecting the rate of
taxes under IGST Act.

LEVY OF COMPENSATION CESS ON BEVERAGES

In addition to the above by Notification No. 1/2021 Compensation Cess (Rate) dated 30-09-2021
compensation cess at 12% has been levied on carbonated beverages of fruit drinks or
carbonated beverages with fruit juices.

The above article has been prepared with my little knowledge of GST. The stake holders, their
service providers and GST officials are advised to go through these notifications with the original
notifications which stands amended and arrive at a proper legal position .

(Certain inputs in the web media, such as Babatax, Taxscan etc., are useful in preparation of
this.)

By S. SUTHANTHIRANATHAN

ASSISTANT COMMISSIONER (CT) MADURAI

GSTP No : 331800001133GP3
Mail ID: vatmadeeasy@gmail.com

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