Applicability oc notification no 45/2017- concessional rate of GST @5

Notification No. 45/2017-Central Tax (Rate), dated 14th November 2017, was introduced to provide a concessional GST rate (effectively 5% combined, or 2.5% CGST) on specific scientific and technical equipment supplied to public-funded research institutions.

Status and Applicability

• Status: This notification has been rescinded (withdrawn) as of 2022 (specifically via Notification No. 11/2022-Central Tax (Rate)). Therefore, it is no longer in effect.

• Historical Scope: When it was active, the notification applied to specific institutions such as public-funded research institutions, universities, IITs, the Indian Institute of Science (Bangalore), and Regional Engineering Colleges (provided they were not hospitals).

• Purpose: It allowed these institutions to procure specific items—such as scientific instruments, computers, and laboratory equipment—at a lower tax rate, provided they met strict conditions, such as obtaining certification that the goods were required strictly for research purposes.

Clarification on "Notification 45/2017"

There is often confusion because the number "45/2017" appears in different contexts under Indian tax law:

1. GST (Central Tax Rate): As mentioned, the notification related to the 2.5% concessional GST rate for research equipment, which is now rescinded.

2. Customs Duty: There is also a Notification No. 45/2017-Customs, which relates to the duty-free re-import of exported goods (e.g., goods returned after export for repairs or due to rejection). This is a completely different regulation and is still a relevant provision for exporters.

Summary:

Notification No. 45/2017-Central Tax (Rate) regarding the concessional GST rate for research equipment is no longer applicable as it was rescinded in 2022. If you are referring to a different Notification No. 45/2017 (such as the one related to Customs/re-import of goods), that is a separate regulation that serves a different purpose.