9911796707
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 ..... ank with other stakeholders in the digital payment ecosystem under the notified Incentive Scheme for promotion of RuPay Debit Cards and low value BHIM-UPI transactions. v. GST liability on the reinsurance of specified general and life insurance schemes. vi. GST liability on the reinsurance of insurance schemes for which total premium is paid by the Government. vii. Applicability of GST on retrocession services. viii. GST liability on certain accommodation services. 2. GST exemption on the outward supplies made by Ministry of Railways (Indian Railways) . 2.1 Based on the request of Ministry of Railways (Indian Railways) and recommendations of the 52nd GST Council meeting held on 07.10.2023, all supplies of goods and services made by Ministry of Railways (Indian Railways) were brought under Forward Charge Mechanism and consequently exemptions that were available to Ministry of Railways (Indian Railways) were withdrawn vide notification No.2151-F.T. dated 07.12.2023 w.e.f. 20.10.2023. 2.2 However, Ministry of Railways had brought out certain difficulties in implementation of the above said notification and matter was examined by the 53rd GST Council in its meeting held on 22nd June, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 3.4 The GST Council in its 53rd meeting has also recommended to regularize the past period in respect of such transactions for the period from 01.07.2017 to 14.07.2024 on as is where is basis. 3.5 Thus, as recommended by the 53rd GST Council, GST on the supply of services by SPVs to Ministry of Railways (Indian Railways) by way of allowing it to use infrastructure built and owned by them during the concession period against consideration and maintenance services supplied by Ministry of Railways (Indian Railways) to SPVs in relation to such use of infrastructure built and owned by SPVs during the concession period against consideration is hereby regularized for the period from 01.07.2017 to 14.07.2024 on as is where is basis. 4. Applicability of GST on the statutory collections made by the Real Estate Regulatory Authority (RERA) in accordance with the Real Estate (Regulation and Development) Act, 2016. 4.1 Representation has been received requesting for clarification on whether GST is applicable on the statutory collections made by the Real Estate Regulatory Authority (RERA). 4.2 RERA is constituted under the Real Estate (Regulation and Development) Act, 2016. RERA performs funct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal Payments Corporation of India (NPCI) in consultation with the participating banks. MeitY pays the incentive to the acquiring bank and it is further shared by the acquiring bank with the issuer bank. Issuer bank further shares the incentive with the Payer Payment Service Provider (PSP), which are typically banks, and the UPI app. 5.4 The share of incentive paid by the acquiring bank to the issuer bank and further shared by the issuer bank to the Payer PSPs and the UPI app are decided by the NPCI in consultation with participating banks. Payer PSPs may choose to further share this incentive with Third Party App Providers (TPAP). However, the proportion of the incentive shared by Payer PSPs with TPAPs is not being decided by NPCI in consultation with the participating banks for Financial Years 202122 and 2022-23 and was determined by the business agreement between the Payer PSPs and TPAP. 5.5 GST Council in its 53rd meeting held on 22nd June, 2024 has recommended to clarify that further sharing of the incentive amount by the acquiring bank with other stakeholders, up to the point where the incentive is distributed in the proportion and manner as decided by NPCI in consultation wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid notification, re-insurance of the aforesaid insurance schemes has been prospectively exempted w.e.f. 27.07.2018. 7.4 GST Council in its 53rd meeting held on 22nd June, 2024 has recommended to regularize the GST liability on such reinsurance of Government sponsored insurance schemes for the past period, i.e. from 01.07.2017 to 26.07.2018, on as is where is basis. 7.5 Thus, as recommended by the GST Council, GST liability on the services by way of reinsurance of insurance services covered under Sl. No. 40 of. notification No. 1136-F.T. dated 28.06.2017 is regularized for the period from 01.07.2017 to 26.07.2018 on as is where is basis. 8. Applicability of GST on retrocession services. 8.1 Representations have been received to clarify whether the term reinsurance as mentioned in Sl. No. 36A of notification No. 1136-F.T. dated 28.06.2017 includes retrocession . 8.2 The matter was placed before the GST Council in its 53rd meeting held on 22nd June, 2024. As per the IRDAI (Re-insurance) Regulations, 2018, 'Retrocession' means a re-insurance transaction whereby a part of assumed reinsured risk is further ceded to another Indian Insurer or a CBR (Cross Border Re-insurer). Accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
