GST News and Updates – September 2021


Central Tax Notifications


Notification 35/2021 – Eighth amendment, 2021 to the CGST Rules

  • Rule 10A – Newly registered person needs to provide PAN linked Bank A/c no
    • In case of proprietorship – PAN to be linked to the Aadhar of the proprietor
  • Rule 10B – Aadhar authentication mandatory for registered person
  • Rule 23 – Aadhar authentication mandatory for being eligible for filing application for revocation of cancellation of registration
  • Rule 45 – ITC 04 filing annual turnover
    • Below 5Cr – To be filed annually
    • Above 5Cr – To be filed half-yearly
  • Rule 59 – Registered person not allowed to file GSTR 1 if GSTR 3B has not been filed for the preceeding month
  • Rule 89 – Aadhar authentication mandatory for being eligible for filing refund application
    • Refund under Section 77 has to be filed online in FORM GST RFD-01
  • Rule 96 – Aadhar authentication mandatory for being eligible for filing refund application for IGST on imports
  • Rule 96C – PAN linked Bank A/c no required for credit of refund

Amendment to Rule 45 comes into effect from 1 Oct 2021

Amendment to Rule 59 comes into effect from 1 Jan 2022

Notification 36/2021 – Aadhar Authentication

  • Sub section 6A of section 25 has been notified
  • Every registered person required Aadhar authentication
  • If an Aadhaar number is not assigned to the registered person, such person shall be offered alternate and viable means of identification

45th GST Council meeting


The GST Council’s 45th meeting was held in Lucknow under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has made the following recommendations :

I. Recommendations relating to GST rates on goods and services

A. COVID-19 relief measure in form of GST rate concessions –

Extension of existing concessional GST rates (currently valid till 30th September, 2021) on following Covid-19 treatment drugs, up to 31st December, 2021

  • Amphotericin B -nil
  • Remdesivir – 5%
  • Tocilizumab -nil
  • Anti-coagulants like Heparin – 5%

Reduction of GST rate to 5% on more Covid-19 treatment drugs, up to 31st December, 2021

  • Itolizumab
  • Posaconazole
  • Infliximab
  • Favipiravir
  • Casirivimab & Imdevimab
  • 2-Deoxy-D-Glucose
  • Bamlanivimab & Etesevimab

B. Major recommendations on GST rate changes in relation to Goods [w.e.f 1.10.2021 unless otherwise stated]

Ores and concentrates of metals such as iron, copper, aluminum, zinc and  few others5%18%
Specified Renewable Energy Devices and parts5%12%
Cartons, boxes, bags, packing containers of paper etc.12%/18%18%
Waste and scrap of polyurethanes and other plastics5%18%
All kinds of pens12%/18%18%
Railway parts, locomotives & other goods in Chapter 8612%18%
Miscellaneous goods of paper like cards, catalogue, printed material (Chapter

49 of tariff)

Retro fitment kits for vehicles used by the disabledAppl. Rate5%
Fortified Rice Kernels for schemes like ICDS etc.18%5%
Medicine Keytruda for treatment of cancer12%5%
Biodiesel supplied to OMCs for blending with Diesel12%5%
IGST on import of medicines for personal use, namely

i.Zolgensma for Spinal Muscular Atrophy

ii.Viltepso for Duchenne Muscular Dystrophy

iii.Other medicines used in treatment of muscular atrophy  recommended by Ministry of Health and Family Welfare and  Department of Pharmaceuticals

Taxable at 12%Exempted
IGST exemption on goods supplied at Indo-Bangladesh  Border haatsTaxable at applicable  ratesExempted
Unintended waste generated during the production of fish meal

except for Fish Oil

Nil for period 1.7.2017 to 30.9.19

Supply of mentha oil from unregistered person has been brought under reverse charge.C. Other changes relating to GST Rates of Goods

  • Exports of Mentha oil to be allowed only against LUT and consequential refund of input tax credit.
  • Brick kilns would be brought under special composition scheme with threshold limit of Rs. 20 lakhs, with effect from 1.4.2022. Bricks would attract GST at the rate of 6% without ITC under the scheme. GST rate of 12% with ITC would otherwise apply to bricks.
  • GST rate changes in order to correct inverted duty structure, in footwear and textiles sector, will be implemented with effect from 01.01.2022.

D. Major GST changes in relation to rates and scope of exemption on Services [w.e.f 1.10.2021 unless otherwise stated]

Description of serviceEarlierRecommended
Licensing services/ the right to broadcast and show original  films, sound recordings, Radio and Television programmes [ to  bring parity between distribution and licensing services]12%18%
Printing and reproduction services of recorded media where  content is supplied by the publisher (to bring it on parity with  Color printing of images from film or digital media)12%18%
Transport of goods by vessel and air from India to

outside India

ExemptedExtension of Exemption

up to 30.9.2022

Services by way of grant of National Permit to goods  carriages on payment of feeTaxable at 18%Exempted
Services related to AFC Women’s Asia Cup 2022.Taxable @ 18%Exempted
Skill Training for which Government bears  expenditure100% Govt Funding – Exempt  Others – Taxable @ 18%75% or More – Exempt  Others – Taxable @ 18%


E. Clarification in relation to GST rate on Goods

1. Pure henna powder and paste, having no additives, attract 5% GST rate under Chapter 14.

2. Brewers’ Spent Grain (BSG), Dried Distillers’ Grains with Soluble [DDGS] and other such residues, falling under HS code 2303 attract GST at the rate of 5%.

3. All laboratory reagents and other goods falling under heading 3822 attract GST at the rate of 12%.

4. Scented sweet supari and flavored and coated illachi falling under heading 2106 attract GST at the rate of 18%

5. Carbonated Fruit Beverages of Fruit Drink” and “Carbonated Beverages with Fruit Juice” attract GST rate of 28% and Cess of 12%. This is being prescribed specifically in the GST rate schedule.

6. Tamarind seeds fall under heading 1209, and hitherto attracted nil rate irrespective of use. However, henceforth they would attract 5% GST rate (w.e.f. 1.10.2021) for use other than sowing. Seeds for sowing will continue at nil rate.

7. External batteries sold along with UPS Systems/ Inverter attract GST rate applicable to batteries [ 28% for batteries other than lithium-ion battery] while UPS/inverter would attract 18%.

8. GST on specified Renewable Energy Projects can be paid in terms of the 70:30 ratio for goods and services, respectively, during the period from 1.7.2017 to 31.12.2018, in the same manner as has been prescribed for the period on or after 1st January 2019.

9. Due to ambiguity in the applicable rate of GST on Fibre Drums, the supplies made at 12% GST in the past have been regularised. Henceforth, a uniform GST rate of 18% would apply to all paper and paper board containers, whether corrugated or non-corrugated.

10. Distinction between fresh and dried fruits and nuts is being clarified for application of GST rate of “nil” and 5%/12% respectively;

11. It is being clarified that all pharmaceutical goods falling under heading 3006 attract GST at the rate of 12% [ not 18%].

12. Essentiality certificate issued by Directorate General of Hydrocarbons on imports would suffice; no need for taking a certificate every time on inter-state stock transfer.

F. Clarification in relation to GST rate on services

1. Coaching services to students provided by coaching institutions and NGOs under the central sector scheme of ‘Scholarships for students with Disabilities” is exempt from GST

2. Services by cloud kitchens/central kitchens are covered under ‘restaurant service’, and attract 5% GST [ without ITC].

3. Ice cream parlor sells already manufactured ice- cream. Such supply of ice cream by parlors would attract GST at the rate of 18%.

4. Overloading charges at toll plaza are exempt from GST being akin to toll.

5. The renting of vehicle by State Transport Undertakings and Local Authorities is covered by expression ‘giving on hire’ for the purposes of GST exemption

6. The services by way of grant of mineral exploration and mining rights attracted GST rate of 18% w.e.f. 01.07.2017.

7. Admission to amusement parks having rides etc. attracts GST rate of 18%. The GST rate of 28% applies only to admission to such facilities that have casinos etc.

8. Alcoholic liquor for human consumption is not food and food products for the purpose of the entry prescribing 5% GST rate on job work services in relation to food and food products.

II. Recommendations relating to GST law and procedure

I. Measures for Trade facilitation:

1. Relaxation in the requirement of filing FORM GST ITC-04: Requirement of filing FORM GST ITC-04 under rule 45 (3) of the CGST Rules has been relaxed as under:

a. Taxpayers whose annual aggregate turnover in preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months;

b. Taxpayers whose annual aggregate turnover in preceding financial year is upto Rs. 5 crores shall furnish ITC-04 annually.

2. In the spirit of earlier Council decision that interest is to be charged only in respect of net cash liability, section 50 (3) of the CGST Act to be amended retrospectively, w.e.f. 01.07.2017, to provide that interest is to be paid by a taxpayer on “ineligible ITC availed and utilized” and not on “ineligible ITC availed”. It has also been decided that interest in such cases should be charged on ineligible ITC availed and utilized at 18% w.e.f. 01.07.2017.

3. Unutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons (entities having same PAN but registered in different states), without going through the refund procedure, subject to certain safeguards.

4. Issuance of the following circulars in order to remove ambiguity and legal disputes on various issues, thus benefiting taxpayers at large:

a. Clarification on scope of “intermediary services”;

b. Clarification relating to interpretation of the term “merely establishment of distinct person” in condition (v) of the Section 2 (6) of the IGST Act 2017 for export of services. A person incorporated in India under the Companies Act, 2013 and a person incorporated under the laws of any other country are to be treated as separate legal entities and would not be barred by the condition (v) of the sub-section (6) of the section 2 of the IGST Act 2017 for considering a supply of service as export of services;

c. Clarification in respect of certain GST related issues:

i. W.e.f. 01.01.2021, the date of issuance of debit note (and not the date of underlying invoice) shall determine the relevant financial year for the purpose of section 16(4) of CGST Act, 2017;

ii. There is no need to carry the physical copy of tax invoice in cases where invoice has been generated by the supplier in the manner prescribed under rule 48(4) of the CGST Rules, 2017;

iii. Only those goods which are actually subjected to export duty i.e., on which some export duty has to be paid at the time of export, will be covered under the restriction imposed under section 54(3) of CGST Act, 2017 from availment of refund of accumulated ITC.

5. Provision to be incorporated in in CGST Rules, 2017 for removing ambiguity regarding procedure and time limit for filing refund of tax wrongfully paid as specified in section 77(1) of the CGST/SGST Act and section 19(1) of the IGST Act.

 Measures for streamlining compliances in GST

1. Aadhaar authentication of registration to be made mandatory for being eligible for filing refund claim and application for revocation of cancellation of registration.

2. Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next open return in FORM GSTR-3B.

3. Refund to be disbursed in the bank account, which is linked with same PAN on which registration has been obtained under GST.

4. Rule 59(6) of the CGST Rules to be amended with effect from 01.01.2022 to provide that a registered person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month.

5. Rule 36(4) of CGST Rules, 2017 to be amended, once the proposed clause (aa) of section 16(2) of CGST Act, 2017 is notified, to restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in FORM GSTR-2B.


Advisory for Taxpayers regarding Generation of EWB where the principal supply is Supply of services.

1. Trade bodies are not able to generate EWB bill for movement of those goods where their principle supply is classifiable as a service, since there is no provision for generating E-way Bill by entering SAC (Service Accounting Code-Chapter 99) alone on the E- way bill portal.

2. To overcome this issue, the taxpayers are advised as below:

a) Rule 138 of CGST Rules, 2017, states “Information to be furnished prior to commencement of movement of goods and generation of e-way bill.-(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees….” Thus, E way bill is required to be generated for the movement of Goods.

b) Therefore, in cases where the principal supply is purely a supply of service and involving no movement of goods, the e-way bill is not required to be generated.

c) However, in cases where along with the principal supply of service, movement of some goods is also involved, e-way bill may be generated. In such cases, e-way bill may be generated by entering the details of HSN code of the goods, along with SAC (Service Accounting Code) of services involved.


On demand fetching of Bill of Entry details from ICEGATE Portal


  1. To help importers of goods, and recipients of supplies from SEZ, search Bill of Entry details, which did not auto-populate in GSTR-2A, a self-service functionality has been made available on the GST Portal that can be used to search such records in GST System, and fetch the missing records from ICEGATE.
  2. It usually takes 2 days (after reference date) for BE details to get updated on GST Portal from ICEGATE. This functionality should, therefore, be used if data is not available after this period. Note: The reference date would be either Out of charge date, Duty payment date, or amendment date – whichever is later.
  3. Taxpayers can follow the below steps to fetch the requisite details:
    1. Login to GST Portal
    2. Navigate to Services > User Services > Search BoE
    3. Enter the Port Code, Bill of Entry Number, Bill of Entry Date and Reference Date and click the SEARCH button. Note: The reference date would be either Out of charge date, Duty payment date, or amendment date – whichever is later.
    4. If the BoE details do not appear in the Search results, click on the QUERY ICEGATE button, at the bottom of the screen, to trigger a query to ICEGATE.
    5. History of fetched BoE details from ICEGATE along with status of query are displayed after 30 minutes from the time of triggering the query.
  4. For records of type IMPG (Import of Goods), details of: Period for Form GSTR-2A (system generated Statement of Inward Supplies); Reference Date; Bill of Entry Details like Port Code, BoE Number, BoE Date & Taxable Value; and Amount of Tax would be displayed. For records of type IMPGSEZ (Import of Goods from SEZ), details of: Period for Form GSTR-2A; Reference Date; GSTIN of Supplier; Trade Name of Supplier; Bill of Entry Details like Port Code, BoE Number, BoE Date & Taxable Value; and Amount of Tax would be displayed.
  5. Taxpayers are advised to confirm correct details either from BE documents, or using ICEGATE portal