Decisions taken by the GST Council on
22.12.18
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Reduction in
GST rates/exemptions on services :
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1
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GST rate on third
party insurance premium of goods
carrying vehicles shall be reduced
from 18% to 12%
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2
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Services supplied by banks to Basic Saving Bank
Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted.
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3
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Services supplied by rehabilitation professionals recognised under Rehabilitation Council of India Act, 1992 at medical
establishments, educational
institutions, rehabilitation centers
established by Central Government / State
Government or Union Territories
or entity registered under section 12AA of the Income-tax Act shall be exempted.
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4
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Services provided
by GTA to Government
departments/local authorities which
have taken registration only for
the purpose of deducting tax
under Section 51 shall be excluded from
payment of tax under RCM and the same shall be exempted.
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5
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Exemption on services provided by Central or State
Government or Union Territory Government to their undertakings or
PSUs by way of guaranteeing loans
taken by them from financial
institutions is being extended to guaranteeing of such loans taken from banks.
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6
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Air travel of pilgrims by non-scheduled/charter
operations, for religious
pilgrimage facilitated by the Government of
India under bilateral arrangements shall
attract the same rate of GST as
applicable to similar flights in Economy
class (i.e. 5% with ITC of input services).
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Rationalization
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7
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Parliament and State legislatures shall be extended the same tax treatment with regard to
payment of tax under RCM (reverse
charge mechanism) as available to Central and State Governments.
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8
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Security services
(supply of security personnel)
provided to a registered person, except Government Departments which have taken registration for TDS and entities registered under composition scheme, shall be put under
RCM.
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9
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Services provided
by unregistered Business
Facilitator (BF) to a bank and agent of Business
correspondent (BC) to a BC shall be put under RCM.
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Clarifications
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10
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To clarify that
with effect from 31st January, 2018
degrees/ diploma awarded by IIMs under IIM Act, 2017 will be exempt
from GST.
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11
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To clarify that the services provided by IFC and ADB are exempt from GST in terms of provisions
of IFC Act, 1958 and ADB Act, 1966.
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12
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To clarify to West
Bengal that services provided by
Council/ Board of Primary/
Secondary/ Higher Secondary Education for
conduct of examination to its students are exempt.
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13
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To clarify that
“printing of pictures” falls under
service code “998386: Photographic and
video graphic processing
services” of the scheme of classification of
services and attract GST @18% and not
under “998912: Printing and
reproduction services of recorded media, on a fee or contract basis” which attracts GST @12%.
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14
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To clarify that
leasing of pumps and reservoirs by the
OMCs to petrol pump dealers is a mixed
supply and the Licence Fee
Recovery (LFR) charged for the same shall be
leviable to GST @ 28%, the rate
applicable to pumps. Leasing of land and buildings along with equipment shall fall under heading 9972 (real
estate services) and attract GST
rate of 18%.
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15
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To clarify that
the incentives paid by RBI to Banks under
“Currency Distribution and Exchange
Scheme” (CDES) are taxable.
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16
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To clarify under section 11(3) of the CGST Act, 2017
that scope of entry for multi-modal
transport with GST rate of 12% inserted
w.e.f. date 26.07.18, covers only
transport of goods from a place in India to
another place in India, that is, only
domestic multi-modal transport.
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17
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To clarify that
the nature of business establishment
making supply of food, drinks and other
articles for human consumption will
not determine whether the supply
by such establishments is a supply of goods or services. It will
rather depend on the constituents of
each individual supply and whether same satisfies the conditions /
ingredients of a ”composite supply‟
or “mixed supply‟.
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18
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To clarify that
GST is exempt on supply of food and
drinks by an educational institution when provided by the institution
itself to its students, faculty and staff
and is leviable to GST of 5% when
provided by any other person based on a
contractual arrangement with
such institutions.
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19
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To clarify that
the banking company is liable to pay GST
on the entire value of service charge or
fee charged to customers whether
or not received via business
facilitator or the business correspondent.
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20
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To issue a
clarification to Food Corporation of
India (FCI) that the service provided
by godown owner in case of lease with
services, where the godown owner,
besides leasing the warehouse,
undertakes to carry out activities of storage and preservation of stored food
grains, is the service of storage and warehousing of agricultural
produce and the same is exempt.
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Information of GST Act and Rules, GST latest news, GST useful procedure and general matters.
Thursday, 3 January 2019
DECISIONS TAKEN BY THE GST COUNCIL ON 22.12.18
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