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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 ..... 4. Whether exemption under Sl. No. 9B of Notification No. 12-State Tax (Rate) dated 29.06.2017 covers services associated with transit cargo both to and from Nepal and Bhutan; 5. Applicability of GST on sanitation and conservancy services supplied to Army and other Central and State Government departments; 6. Whether the activity of selling of space for advertisement in souvenirs is eligible for concessional rate of 5%; 7. Taxability and applicable rate of GST on transport of minerals from mining pit head to railway siding, benefication plant etc., by vehicles deployed with driver for a specific duration of time; 8. Whether location charges or preferential location charges (PLC) collected in addition to the lease premium for long term lease of land constitute part of the lease premium or upfront amount charged for long term lease of land and are eligible for the same tax treatment; 9. Applicability of GST on payment of honorarium to the Guest Anchors; 10. Whether the additional toll fees collected in the form of higher toll charges from vehicles not having fastag is exempt from GST; 11. Applicability of GST on services in the form of Assisted R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply of ice-cream at the rate of 18% with ITC. 4. Applicability of GST on application fee charged for entrance or the fee charged for issuance of eligibility certificate for admission or for issuance of migration certificate by educational institutions. 4.1 Representations have been received regarding applicability of GST on application fee charged for entrance or the fee charged for issuance of eligibility certificate for admission or for issuance of migration certificate by educational institutions. 4.2 In this regard, it is stated that educational services supplied by educational institutions to its students are exempt from GST vide entry 66 of the Notification No. 12-State Tax (Rate) dated 29.06.2017 relevant portion of which reads as under, - Services provided - a. by an educational institution to its students, faculty and staff; [(aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee,,} ... 4.3 Therefore, it can be seen that all services supplied by an 'educational institution' to its students are exempt from GST. Consideration charged by the educationa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m cotton plants. 5.3 Accordingly, it is clarified that service by way of storage or warehousing of cotton in ginned and or baled form was covered under entry 24B of Notification No. 12-State Tax (Rate) dated 29.06.2017 in the category of raw vegetable fibres such as cotton. It may however be noted that this exemption has been withdrawn w.e.f 18.07.2022. 6. Whether exemption under SI. No. 9B of Notification No. 12-State Tax (Rate) dated 29.06.2017 covers services associated with transit cargo both to and from Nepal and Bhutan 6.1 Representations have been received regarding applicability of GST on transportation of empty containers returning from Nepal and Bhutan after delivery of transit cargo, to India. 6.2 GST on supply of services associated with transit cargo to Nepal and Bhutan was exempted w.e.f 29.09.2017 based on recommendations of the 20th GST Council Meeting. The opening sentence of the Agenda Item 7(ix) placed before the GST Council on this issue, makes it clear that the proposal was to exempt supply of services associated with transit cargo both to and from Nepal and Bhutan. 6.3 Accordingly, as recommended by the GST Council, it is clarified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Representations have been received regarding taxability of sanitation and conservancy services supplied to Army and other Central and State Government departments. 7.2 Municipalities and Panchayats and other local authorities such as Cantonment Boards listed in Section 2(69) of the Assam Goods and Services Tax act, 2017 carry out functions entrusted to them under articles 243W 243G of the Constitution respectively. Functions that may be entrusted to panchayats and municipalities are listed in Schedule 11 12 of the Constitution. Central Government, State Governments Union Territories also perform functions listed in Schedule 11 12 such as irrigation, public health etc. 7.3 Services by Central Government, State Government, Union Territory or any local authority by way of any activity in relation to a function entrusted to a Panchayat under article 243G of the constitution or to a municipality under article 243W of the constitution have been declared as 'neither a supply of goods nor a supply of service' vide notification no. 14- State Tax (Rate) dated 29.06.2017. 7.4 The exemption under entry 3 3A of Notification No. 12-State Tax (Rate) dated 29.06.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... minerals from mining pit head to railway siding, beneficiation plant etc., by vehicles deployed with driver for a specific duration of time. 9.1 Representations have been received to clarify the taxability of transport of minerals within a mining area, say from mining pit head to railway siding, beneficiation plant etc., by vehicles deployed with driver for a specific duration of time and whether the same would be covered under Sr. No. 18 of Notification No. 12-State Tax (Rate) dated 29.06.2017 which exempts transport of goods by road except by a GTA. 9.2 Usually in such cases the vehicles such as tippers, dumpers, loader, trucks etc., are given on hire to the mining lease operator. Expenses for fuel are generally borne by the recipient of service. The vehicles with driver are at the disposal of the mining lease operator for transport of minerals within the mine area (mining pit to railway siding, beneficiation plant etc.) as per his requirement during the period of contract. 9.3 Such services are nothing but rental services of transport vehicles with operator which fall under heading 9966 and attract GST @ 18% under Sr. No. 10 part (iii) of Notification No. 11-S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is integral part of supply of long-term lease of plot and therefore, location charge is nothing but part of consideration charged for long term lease of plot. Being charged upfront along with the upfront amount for the lease, the same is exempt. 10.4 Accordingly, as per recommendation of the GST Council, it is clarified that location charges or preferential location charges (PLC) paid upfront in addition to the lease premium for long term lease of land constitute part of upfront amount charged for long term lease of land and are eligible for the same tax treatment, and thus eligible for exemption under Sl. No. 41 of Notification No. 12-State Tax (Rate) dated 29.06.2017. 11. Applicability of GST on payment of honorarium to the Guest Anchors 11.1 Representation has been received regarding applicability of GST on honorarium paid to Guest Anchors. Sansad TV and other TV channels invite guest anchors for participating in their shows and pays remuneration to them in the form of honorarium. Some of the guest anchors have requested payment of GST @ 18% on the honorarium paid to them for such appearances. 11.2 It is clarified that supply of all goods services are tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner or para-medics are exempt. [S1. No. 74 of Notification No. 12-State Tax (Rate) dated 29,06.2017]. 13.3 Health care services is defined vide 2(zg) of the Notification No. 12-State Tax (Rate) dated 29.06.2017 as- health care services means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma. 13.4 The abnormality/disease/ailment of infertility is treated using ART procedure such as IVF. It is clarified that services by way of IVF are also covered under the definition of health care services for the purpose of above exemption notification. 14. Whether sale of land after levelling, laying down of drainage lines etc., is taxable under GST 14.1 Representation has been received requesting for clarification regarding applicabi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cle shall be at the disposal of the body corporate, the service would fall under Heading 9966, and the body corporate shall be liable to pay GST on the same under RCM. It may be seen that reverse charge thus would apply on act of renting of vehicles by body corporate and in such a case, it is for the body corporate to use in the manner as it likes subject to agreement with the person providing vehicle on rent. 15.7 However, where the body corporate avails the passenger transport service for specific journeys or voyages and does not take vehicle on rent for any particular period of time, the service would fall under Heading 9964 and the body corporate shall not be liable to pay GST on the same under RCM. 16. Whether hiring of vehicles by firms for transportation of their employees to and from work is exempt under Sr. No. IS(b) of Notification No. 12-State Tax (Rate) transport of passengers by non-air conditioned contract carriage 16.1 Representations have been received to clarify whether the engagement of non-air conditioned contract carriages by firms for transportation of their employees to and from work is exempt under entry at Sr. No. 15(b) Notification No. 12-S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that prior to 18.07.2022 serial number 3(v)(f) of Notification No. l l-State Tax (Rate) dated 29.06.2017 prescribes GST rate of 12 % on the composite supply of works contract by way of construction, erection, commissioning, or installation of original works pertaining to mechanized food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages. 17.4 It is clarified that a contract of the nature described here for construction, installation and commissioning of a dairy plant constitutes supply of works contract. There is no doubt that dairy plant which comes into existence as a result of such contracts is an immovable property. 17.5 It is also clarified that such works contract services were eligible for concessional rate of 12% GST under serial number 3(v)(f) of Notification No. 11-State Tax (Rate) dated 29.06.2017 prior to 18.07.2022. With effect from 18.07.2022, such works contract services would attract GST at the rate of 18% in view of amendment being carried out in Notification No. 11-State Tax (Rate) vide notification No. 03/2022- State Tax (Rate). 18. Applicability of GST on tickets ..... X X X X Extracts X X X X X X X X Extracts X X X X
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