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TMI BlogClarifications regarding applicable GST rates & exemptions on certain Services.X X X X Extracts X X X X X X X X Extracts X X X X ..... nts provided by coaching institutions and NGOs under the central sector scheme of Scholarships for students with Disabilities , 4. Satellite launch services provided by NSIL. 5. Overloading charges at toll plaza, 6. Renting of vehicles by State Transport Undertakings and Local Authorities, 7. Services by way of grant of mineral exploration and mining rights attracted GST, 8. Admission to amusement parks having rides etc. , Services supplied by contract manufacture to brand owners or others for manufacture of alcoholic liquor for human consumption. 2. The issues have been examined by Goods and Services Tax Council in the 45th meeting of the Council held on 17th September, 2021. The issue-wise clarifications are given below: 3.. Services by cloud kitchens/central kitchens: 3.1 Representations have been received requesting for clarification regarding the classification and rate of GST on services rendered by Cloud kitchen or Central Kitchen. 3.2 The word restaurant service is defined in the orders issued in Go.Ms.No.259, File No.REV03-12039/101/2021-DC-IT-CCT Revenue(CT-II)Department, dated 29.06.2017 as below: - Restaurant service means supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarified that ice cream sold by a parlor or any similar outlet would attract GST at the rate of 18%. 5. Coaching services supplied by coaching institutions and NGOs under the central sector scheme of Scholarships for students with Disabilities 5.1 Representations have been received seeking clarification regarding applicability of GST on free coaching services provided by coaching institutions and NGOs under the central scheme of Scholarships for students with Disabilities where entire expenditure is provided by Government to coaching institutions by way of grant in aid. 5.2 In this regard, it is to mention that entry 72 of the orders issued in Go.Ms.No.588, Revenue(CT-II) Department, dated 12.12.2017, exempts services provided to the Central Government, State Government, Union territory administration under any training programme for which total expenditure is borne by the Central Government, State Government, Union territory administration. 5.3 The scope of this entry is wide enough to cover coaching services provided by coaching institutions and NGOs under the central scheme of Scholarships for students with Disabilities where total expenditure is borne by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en to toll charges. 8. Renting of vehicles to State Transport Undertakings and Local Authorities 8.1 Representations have been received seeking clarification regarding eligibility of the service of renting of vehicles to State Transport Undertakings (STUs) and Local Authorities for exemption from GST under the orders issued in Go.Ms.No.588, Revenue(CT-II) Department, dated 12.12.2017. Sl. No. 22 of this Order exempts services by way of giving on hire (a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or (aa) to a local authority, an Electrically Operate vehicle meant to carry more than twelve passengers . 8.2 This issue has arisen in the wake of ruling issued by an Authority for Advance Ruling that the entry at Sl. No. 22 of the orders i s s u e d i n Go.Ms.No.588, Revenue (CT-II) Department, dated 12.12.2017 exempts services by way of giving on hire vehicles to a State Transport Undertaking or a local authority and not renting of vehicles to them. The ruling referred to certain case laws pertaining to erstwhile positive list based service tax regime. 8.3 It is relevant to note in this context that Schedule II of Andhra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer of title in goods . In certain other advance rulings, a view has been taken that grant of rights for mineral exploration and mining would be covered under heading 9991 and would attract GST at the rate of 18%. 9.2.1 AAAR, Odisha, on the other hand has ruled vide Order dated 5.11.2019 in the case of M/s Penguin Trading and Agencies Limited that grant of mining lease was taxable @ 18% prior to 01.01.2019. The Appellate Authority in this case observed that GST rate applicable against Sl. No. 17 item (viii) of the orders issued in Go.Ms.No.259, Revenue(CT-II)Department, dated 29.06.2017 prior to 01.01.2019 was not implementable. Unlike leasing or renting of goods, there are no underlying goods in case of leasing of mining area. The rate prescribed for goods cannot be made applicable to leasing of mining area, which confers the right to extract and appropriate minerals. The mining lease by Government, not being a lease of any goods, cannot attract the rate applicable to sale of like goods. Appellate Authority for Advance Ruling, Odisha has further held that the amendment carried out vide orders issued in the Go.Ms.No.24, Revenue(CTII) Department, dated 18.01.2019,which restr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of grant of mining rights, during the period 1.7.2017 to 31.12.2018, it was taxable at 18% in view of principle laid down in the 14th meeting of the Council for residuary GST rate. Post, 1st January, 2019 no dispute remains as stated above. 10. Admission to indoor amusement parks having rides etc. 10.1 Representations have been received requesting for clarification regarding applicable rate of GST on services provided by Indoor Amusement Parks/Family Entertainment Centers, and scope of the word amusement park under entry 34(iii) of the orders issued in Go.Ms.No.259, Revenue(CT-II)Department, dated 29.06.2017 10.2 Entry 34(iii) of the orders i s s u e d i n Go.Ms.No.259, Revenue(CTII) Department, dated 29.06.2017, prior to 01.10.2021, prescribed 18% GST on the services by way of admission to amusement parks including theme parks, water parks, joy rides, merry-go rounds, go-carting and ballet. On the other hand, Entry No. 34(iiia) of the orders issue d in Go.Ms.No.259, Revenue(CT-II)Department, dated 29.06.2017 dated 28.06.2017 prescribed GST rate of 28% on the services by way of admission to entertainment events or access to amusement facilities including casin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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