9911796707
TMI BlogClarifications regarding applicable GST rates & exemptions on certain servicesX X X X Extracts X X X X X X X X Extracts X X X X ..... formations, which is annexed herewith. In exercise of powers conferred by section 168 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 2017) for the purpose of uniformity in the implementation of the Act it is instructed to follow the clarification issued vide Circular No. 164/20/2021-GST dated 06 th October 2021 by the Government of India, Ministry of Finance, Department of Revenue, Tax Research Unit. Encl : Circular No. 164/20/2021-GST (Dr. Vishal Kumar, IAS) Chief Commissioner of State Tax Government of Tripura Circular No. 164 /20 /2021-GST CBIC-190354/207/2021-TO (TRU-II)-CBEC Government of India Ministry of Finance Department of Revenue (Tax Research Unit) ***** North Block, New Delhi, Dated the 6th October, 2021 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All), The Principal Director Generals/ Director Generals (All) Madam/Sir, Sub: Clarifications regarding applicable GST rates exemptions on certain services r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral kitchens. 3.4 Accordingly, as recommended by the Council, it is clarified that service provided by way of cooking and supply of food, by cloud kitchens/central kitchens are covered under restaurant service‟, as defined in notification No. 11/2017- Central Tax (Rate) and attract 5% GST [ without ITC]. 4. Supply of ice cream by ice cream parlors 4.1 Representations have been received requesting for clarification regarding the supplies provided in an ice cream outlet. 4.2 Ice cream parlors sell already manufactured ice- cream and they do not have a character of a restaurant. Ice-cream parlors do not engage in any form of cooking at any stage, whereas, restaurant service involves the aspect of cooking/preparing during the course of providing service. Thus, supply of ice-cream parlor stands on a different footing than restaurant service. Their activity entails supply of ice cream as goods (a manufactured item) and not as a service, even if certain ingredients of service are present. 4.3 Accordingly, as recommended by the Council, it is clarified that where ice cream parlors sell already manufactured ice- cream and do not cook/prepare ice- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia is outside India and such supply which meets the requirements of section 2(6) of IGST Act, constitutes export of service and shall be zero rated. If the service recipient is located in India, the satellite launch services would be taxable. 6.3 As recommended by the Council, it is clarified that as the satellite launch services supplied by NSIL are similar to those supplied by ANTRIX Corporation Ltd, the said circular No. 2/1/2017-IGST dated 27.09.2017, is applicable to them. 7. GST on overloading charges at toll plaza. 7.1 Representations have been received seeking clarification regarding applicability of GST on Overloading charges collected at Toll Plazas. 7.2 Entry 23 of notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017, exempts Service by way of access to a road or a bridge on payment of toll charges. 7.3 Vide notification dated 25th Sep. 2018, issued by Ministry of Road Transport And Highways, overloaded vehicles were allowed to ply on the national highways after payment of fees with multiplying factor of 2/4/6/8/10 times the base rate of toll. Therefore, it essence overloading fees are effectively higher toll charges. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T applicable on supply of services by way of granting mineral exploration and mining rights during the period from 1.07.2017 to 31.12.2018. With effect from 1.1.2019, the rate schedule has been specifically amended and it is undisputed since then that such service attracts GST at the rate of 18%. 9.2 For the disputed period [ 1.7.2017 to 31.12.2018], divergent rulings have been issued by Authorities for Advance Ruling (AAR) and Appellate Authorities for Advance Ruling (AAAR) of various States on the GST rate applicable on the same. AAR, Haryana in case of M/s Pioneer Partners and AAR, Chhattisgarh in case of M/s NMDC have ruled that the service of grant of mining leases is classifiable under Service Code 997337 (licensing services for the right to use minerals including its exploration and evaluation) and attracted, prior to 01.01.2019, the same rate of GST as applicable to minerals, that is, 5% as prescribed against Sl. No. 17, item (viii) of Notification No. 11/2017-Central Tax (Rate). The rate prescribed against this entry prior to 01.01.2019 was the same rate as applicable on supply of like goods involving transfer of title in goods . In certain other advance rulings, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s regards the applicable rate for the period from 1.7.2017 to 31.12.2018, the council took note of the following facts, namely,- (i) GST Council in its 4th meeting held on 3rd 4th November, 2016 had decided that supply of services shall be generally taxed at the rate of 18%. (ii) More importantly, the GST Council in its 14th meeting held on 18th 19th May, 2019, while recommending the rate schedules of services (5%, 12%, 18% and 28%), specifically recommended that all the residuary services would attract GST at the rate of 18%. (iii) The rate applicable on the service of grant of mineral exploration license and mining lease under Service Tax was also the standard rate of 15.5%. Services under this category have been standard rated in GST at 18% (iv) Therefore, the intention has always been to tax this activity / supply at standard rate of 18% 9.3.3 Accordingly, as recommended by the Council, it is clarified that even if the rate schedule did not specifically mention the service 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d food products falling under chapters 1 to 22 in the first Schedule to the Customs Tariff Act, 1975. 11.2 The issue was placed before the GST Council in its 45th meeting held on 17th September, 2021. The Council had also deliberated upon this issue in its 39th and 40th meeting. 11.3 As recommended by GST Council, it is clarified that the expression food and food products in the said entry excludes alcoholic beverages for human consumption. As such, in common parlance also alcoholic liquor is not considered as food. Accordingly, services by way of job work in relation to manufacture of alcoholic liquor for human consumption are not eligible for the GST rate of 5% prescribed under the said entry. GST Council recommended that such job work would attract GST at the rate of 18%. 12. Difficulties, if any, in implementation of this circular may be brought to the notice of the Board. Yours faithfully, (Rajeev Ranjan) Under Secretary, TRU Email: [email protected] - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
