Tuesday, 24 October 2017
GST rates on job work services
Decisions taken by the GST
Council in the 22ndmeeting held on 6th October 2017
GST rates on job work services is being rationalised as follows: -
|
S.No
|
Description of Service
|
Rate
|
|
1
|
Job
work services in relation to all products falling in Chapter 71 (including
imitation jewellery)
|
5%
|
|
2
|
Job
work services in relation to food and food products falling under Chapters 1
to 22 of the HS Code (except packing of processed milk into packets)
|
5%
|
|
3
|
Job
work services in relation to products falling under Chapters 23 of the HS
Code except dog and cat food put up for retail sale (CTH 23091000)
|
5%
|
|
4
|
Job
work in relation to manufacture of umbrella
|
12%
|
|
5
|
Job
work in relation to manufacture of clay bricks falling under CTH 69010010
|
5%
|
|
6
|
Services
by way of printing on job work basis or on goods belonging to others in
relation to printing of all goods falling under Chapter 48 or 49, which
attract GST @ 5% or Nil [Heading 9988]
|
5%
|
|
7
|
Services
by way of printing on job work basis or on goods belonging to others in
relation to printing of all goods falling under Chapter 48 or 49, which
attract GST @ 12% [Heading 9988]
|
12%
|
|
8
|
Services
by way of printing on job work basis or on goods belonging to others in
relation to printing of goods falling under Chapter 48 or 49, other than
those covered by (6) and (7) above, [Heading 9988]
|
18%
|
|
9
|
Services
by way of printing in relation to printing of all goods falling under Chapter
48 or 49, which attract GST @ 5% or Nil, where only content is supplied by
the publisher and the physical inputs including paper used for printing
belong to the printer [(Heading 9989)]
|
12%
|
|
10
|
Services
by way of printing of all goods falling under Chapter 48 or 49 which attract
GST @12%, where only content is supplied by the publisher and the physical
inputs including paper used for printing belong to the printer
|
12%
|
|
11
|
Services
by way of printing of all goods falling under Chapter 48 or 49 which attract
GST @18% or above, where only content is supplied by the publisher and the
physical inputs including paper used for printing belong to the printer
|
18%
|
|
12
|
To
issue a clarification with regard to classification of printing
products/services.
|
|
1.
If a dealer who makes supplies of goods and
services referred to in clause (b) of paragraph 6 of Schedule II of
CGST Act and /or also receives interest income or makes supply of any exempt
service, (s)he will not be ineligible
for the Composition Scheme under Section 10 provided all other conditions are
met. Further, in computing
his aggregate turnover in order to determine his eligibility for composition
scheme, interest income and
value of supply of any exempt services shall not be taken into account. Removal
of Difficulty order under
section 172 of CGST/SGST/UTGST Act will be issued.
2. The
services provided by a GTA to an unregistered person (under GST law) including
unregistered casual taxable person other than the recipients liable to pay
tax on GTA services under reverse charge shall be exempted from GST.
4.1
Leasing of vehicles purchased and leased
prior to 1.7.2017, shall be taxed at 65% of the applicable GST +
Cess rate. This reduced rate would be applicable for a period of 3 years with
effect from 1st July 2017;
4.2
The vehicles covered by the above leases
(i.e. leases of vehicles purchased and leased prior to 1.7.2017),
when
disposed off/ sold shall also be taxed at 65% of the applicable GST + Cess
rate. This reduced rate
would be
applicable for a period of 3 years with effect from 1st July 2017;
4.3
Sale/supply of vehicles by a registered
person, who had procured the vehicle prior to 1st July 2017 and has not
availed input tax credit of central excise duty, VAT or any other taxes paid on
such vehicles, would be taxed
at 65% of the applicable GST + Cess rate. This reduced rate would be applicable
for a period of 3 years
with
effect from 1st July 2017.
4.4
Sale by way of auction etc. of used vehicles,
seized and confiscated goods, scrap etc by Central Government, State
Government, Union Territory or a local authority, to any person, to be
subjected to GST under reverse charge
under section 9 (3) of the CGST Act.
5. Transport
of passengers by motor cab/ renting of motor cab:-
(i)
GST of 5% without ITC and 12% with full ITC
available to transport of passengers by motor cab/ renting of motor cab shall be extended to any motor vehicle;
(ii) ITC
of input services shall be allowed in the same line of business at GST rate of
5%
Other rate changes in services:
1.
Works contract services involving
predominantly earth works (that is, constituting more than 75% of the value of the works
contract) supplied to Central Government, State Governments, Local Authority,
Governmental Authority or Government Entity
shall be taxed at 5%.
2.
To expand the existing definition of Governmental
Authority so as to include any authority set up to carry out any functions entrusted
to a Panchayat under Article 243G of the Constitution.
3.
Supply of service or goods by a Government
Entity to Central Government, State
Government, Union Territory, Local Authority or any person specified by
them against consideration received from them in the form of grants, shall be exempted. “Government Entity” shall be defined as an
authority or a board or any other body including a society, trust, corporation which is, -
(i)
set up by an Act of Parliament or State
Legislature, or
(ii)
established by any government, with 90% or more participation by way of
equity or control, to carry out a function entrusted by the Central
Government, State Government or a local authority.
4.
The reduced rate of 12% on specified works
contract services supplied to the Central Government, State Government, Union Territory, Local Authority and
Governmental Authority shall be extended to a Government Entity, where such specified works contract services have
been procured by the government entity in relation to the work entrusted to it by the Central Government,
State Government, Union Territory or Local Authority.
5.
GST shall be levied @ 12% on works contract
services in respect of offshore works contract relating to oil and gas exploration and production (E&P) in the offshore
area beyond 12 nautical miles.
6.
GST shall be levied @ 12% with ITC or 5%
without ITC for transportation of natural gas through pipeline.
7.
Exemption to annuity paid by NHAI (and State
authorities or State owned development corporations for constructionof roads) to
concessionaires for construction of public roads.
8.
Upfront amount (called as premium, salami,
cost, price, development charges or by any other name) payable in respect of
service, by way of granting of long term lease of thirty years, or more) of industrial plots
or plots for development of infrastructure for financial business,
provided by the State Government Industrial Development Corporations/ Undertakings or any other entity having 50%
or more ownership of Central Government,
State Government, Union Territory to (a) industrial units or
(b) developers in any industrial or financial business area, may
be exempted from GST .
9.
The services provided by Overseeing Committee
members to RBI shall be taxed under the reverse charge mechanism under section 9(3) of the CGST Act, 2017.
10.
Some other technical changes/amendments shall
be made in notifications issued under CGST, IGST, UTGST and SGST Acts.
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