GST on All IPR Hiked to 18% from 12%, 12% Exemption Rate on Non-IT IPR Deleted

· IT Software rate now covered in General rate of 18% in Schedule III, No change in Rate of 18%

[Notification No. 13/2021-Integrated Tax (Rate) dated 27 October 2021]

G.S.R. ......(E).- In exercise of the powers conferred by sub-section (1) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.1/2017-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. 666(E), dated the 28th June, 2017, namely:-

In the said notification, -

(a) in Schedule II – 12%, S. No. 243 and the entries relating thereto shall be omitted;

(b) in Schedule III – 18%, against S. No. 452P, in column (3), the words “in respect of Information Technology software” shall be omitted.

[F.No.354/207/2021-TRU]

243

Any Chapter

Permanent transfer of Intellectual Property (IP) right in respect of goods other than Information Technology software [13/2021-IGST/27.10.2021 – SNo. 243 omitted] 43/2017-IGST dated 14.11.2017 - SNo. 243 inserted]

II

12%

452P

Any Chapter

Permanent transfer of Intellectual Property (IP) right in respect of Information Technology software [13/2021-IGST/27.10.2021 – SNo. 452P - The words in strikethrough omitted][ 43/2017-IGST dated 14.11.2017 - SNo. 452P inserted]

III

18%