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TMI BlogClarifications regarding applicable GST rates and exemptions on certain servicesX X X X Extracts X X X X X X X X Extracts X X X X ..... ers or others for manufacture of alcoholic liquor for human consumption. 2. The issues have been examined by GST Council in the 45th meeting of the Council held on September 17, 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 Notification No. 11-State Tax (Rate) (FTX. 56/2017/24, dated June 29, 2017) as below : Restaurant service means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied. 3.3 The explanatory notes to the classification of service state that restaurant service includes services provided by restaurants, cafes and similar eating facilities including takeaway services, room services and door delivery of food. Therefore, it is clear that tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication No. 12-State Tax (Rate) (FTX. 56/2017/25, dated June 29, 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 Government by way of funding to institute providing such coaching. 5.4 Accordingly, as recommended by the GST Council, it is clarified that services provided by any institutions/NGOs under the central scheme of scholarships for students with disabilities where total expenditure is borne by the Government is covered under entry 72 of Notification No. 12-State Tax (Rate) (FTX. 56/2017/25, dated June 29, 2017) and hence exempt from GST. 6. Satellite launch services provided by NSIL 6.1 Representation has been received for issuance of a clarification recognizing Satellite Launch Services supplied by M/s. New Space India Limited (NSIL), a wholly-owned Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority for Advance Ruling that the entry at Sl. No. 22 of Notification No. 12-State Tax (Rate) (FTX.56/2017/25, dated June 29, 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 the Assam GST Act, 2017 declares supply of any goods without transfer of title as supply of service even if right to use is transferred. Transfer of right to use has been declared as a supply of service (Schedule II, Entry 5(f) refers) 8.4 The issue was placed before the 45th GST Council meeting held on September 17, 2021. As recommended by the GST Council, it is clarified that the expression giving on hire in Sl. No. 22 of Notification No. 12-State Tax (Rate), (FTX. 56/2017/25, dated June 29, 2017) includes renting of vehicles. Accordingly, services where the said vehicles are rented or given on hire to State transport undertakings or local authorities are eligible for the said exemption irrespective of whether such vehicles are run on routes, ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Notification No. 27-State Tax (Rate) (FTX.56/2017/Pt-I/204, dated February 28, 2019), which restricted the same rate as applicable to supply of goods involving transfer of title in goods only to leasing or renting of goods was to clarify the legislative intent as well as to resolve the unintended interpretation. It is a settled law that interpretation which defeats the intention of Legislature cannot be adopted. It accordingly upheld that licensing services for the right to use minerals including its exploration and evaluation falling under service code 997337 were taxable at 18 per cent. during July 1, 2017 to December 31, 2018. 9.2.2 It may be noted that the expression same rate of tax as applicable on supply of like goods involving transfer of title in goods applies in case of leasing or renting of goods. In case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7/24, dated June 29, 2017), prescribed 18 per cent. 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) in Notification No. 11-State Tax (Rate) (FTX. 56/2017/24, dated June 29, 2017) prescribed GST rate of 28 per cent. on the services by way of admission to entertainment events or access to amusement facilities including casinos, race club, any sporting event such as Indian Premier League and the like. 10.3 On the recommendations of the council, it is clarified that 28 per cent. rate (entry 34 (iiia)) applies on admission to a place having casino or race club (even if it provides certain other activities) or admission to a sporting event like IPL. On the other hand, entry 34(iii), having a rate of 18 per cent., covers all other cases of admission to amusement parks, or theme park, etc., or any place having joy rides, merry-go rounds, go-carting, etc., whether indoor or outdoor, so long as no access is provided to a casino or race club. This clarification will also apply to entries 34(iii) and 34(iiia) as they existed prior to their amendment with effec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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