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TMI BlogClarifications regarding applicability of GST on certain servicesX X X X Extracts X X X X X X X X Extracts X X X X ..... in case of passenger transport service and renting of motor vehicles includes leasing of motor vehicles without operators. ii. Whether GST is applicable on reimbursement of electricity charges received by real estate companies, malls, airport operators etc. from their lessees/occupants. iii. Whether job work for processing of Barley into Malted Barley attracts GST @ 5% as applicable to job work in relation to food and food products or 18% as applicable on job work in relation to manufacture of alcoholic liquor for human consumption . iv. Whether District Mineral Foundations Trusts (DMFTs) set up by the State Governments are Governmental Authorities and thus eligible for the same exemptions from GST as available to any other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charges received by real estate companies, malls, airport operators etc. from their lessees/occupants. 3.1 Doubts were raised on the applicability of GST on supply of electricity by the real estate companies, malls, airport operators etc., to their lessees or occupants. 3.2 It is clarified that whenever electricity is being supplied bundled with renting of immovable property and/or maintenance of premises, as the case may be, it forms a part of composite supply and shall be taxed accordingly. The principal supply is renting of immovable property and/or maintenance of premise, as the case may be, and the supply of electricity is an ancillary supply as the case may be. Even if electricity is billed separately, the supplies will constit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of beer and alcoholic liquor for human consumption. However, irrespective of end-use, conversion of barley into malt amounts to job work in relation to food products. 4.3 It is hereby clarified that job work services in relation to manufacture of malt are covered by the entry at SI. No. 26 (i) (f) which covers job work in relation to all food and food products falling under chapters 1 to 22 of the customs tariff' irrespective of the end use of that malt and attracts 5% GST. 5. Whether District Mineral Foundations Trusts (DMFTs) set up by the State Governments are Governmental Authorities and thus eligible for the same exemptions from GST as available to any other Governmental Authority. 5.1 DMFTs work for the interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Maintenance of community assets, urban forestry, protection of the environment and promotion of ecological aspects are functions entrusted to Panchayats and Municipalities under Article 243G and 243W read with SI. No. 29 of 11th Schedule and SI. No. 8 of 12th Schedule of the constitution. 6.3 SI. No. 3 and 3A of notification No. 12/2017- State Tax (Rate) exempt pure services and composite supply of goods and services in which value of goods does not constitute more than 25%, that are provided to the Central Government, State Government or Union territory or local authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Munici ..... X X X X Extracts X X X X X X X X Extracts X X X X
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