GST Council in the 37th meeting held on 20th September, 2019 at Goa took following decisions relating to changes in GST rates, ITC eligibility criteria, exemptions and clarifications on connected issues that will notify from October 01, 2019.
Total 13 notifications issued. 12 notifications issued for Central Tax (Rate) and 1 notification for Central Tax in this regard.
Notifications – Central Tax (Rate) dated September 30, 2019
In Schedule I – 2.5% :-
1. 5% to Nil for Dried tamarind
2. 18% to 5% on Marine Fuel 0.5% (FO)
3. 5% to Nil on – Other made up textile articles, sets, of sale value not exceeding Rs. 1000 per piece.
In Schedule II – 6% :-
1. GST rate of 12% on Woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of a kind used for packing of goods. (HSN code 3923 or 6305).
2. 6% to Nil on Wet grinder consisting of stone as a grinder.
3. In HSN code of 9607 , after the words “Slide fasteners”, the words “and parts thereof”, shall be inserted.
4. The following new entries are added.
√ Rail locomotives powered from an external source of electricity or by electric accumulators
√ Other rail locomotives; locomotive tenders; such as Diesel electric locomotives, Steam locomotives and tenders thereof
√ Self-propelled railway or tramway coaches, vans and trucks, other than those of heading 8604.
√ Railway or tramway maintenance or service vehicles, whether or not self-propelled (for example, workshops, cranes, ballast tampers, track liners, testing coaches and track inspection vehicles)
√ Railway or tramway passenger coaches, not self-propelled; luggage vans, post office coaches and other special purpose railway or tramway coaches, not self-propelled (excluding those of heading 8604)
√ Railway or tramway goods vans and wagons, not self propelled
√ Parts of railway or tramway locomotives or rolling-stock; such as Bogies, bissel-bogies, axles and wheels, and parts thereof
√ Railway or tramway track fixtures and fittings; mechanical (including electro-mechanical) signalling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields; parts of the foregoing”;
In Schedule III – 9% –
1. In HSN code of 2202 91 00, 2202 99 90, after the words “coconut water”, the words “and caffeinated beverages” shall be inserted.
2. In HSN code of 3923 after the words “other closures, of plastics”, the brackets, words, letters and figures “(except the items covered in Sl. No. 80AA in Schedule II]), shall be inserted. It means that which will cover in 12% that will not covered in this schedule.
3. 9% to Nil on Parts of slide fasteners as mentioned in HSN code of 9607 20 00.
4. In HSN code 8703 following entry is substituted.
“Following motor vehicles of length not exceeding 4000 mm, namely: –
(a) Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven vehicles of engine capacity not exceeding 1200cc; and
(b) Diesel driven vehicles of engine capacity not exceeding 1500 cc for persons with orthopedic physical disability, subject to the condition that an officer not below the rank of Deputy Secretary to the Government of India in the Department of Heavy Industries certifies that the said goods shall be used by the persons with orthopedic physical disability in accordance with the guidelines issued by the said Department”
In Schedule IV- 14%-
The new entry shall be inserted, namely ,Caffeinated Beverages under HSN code of 2202 99 90.
In Schedule IV – 1.5%
1. 5% to Nil on Semi-precious stones, whether or not worked or graded but not strung, mounted or set; semiprecious stones, temporarily strung for convenience of transport [other than Unworked or simply sawn or roughly shaped] (HSN 7103)
2. 5% to Nil on Synthetic or reconstructed semi-precious stones, whether or not worked or graded but not strung, mounted or set; ungraded synthetic or reconstructed semiprecious stones, temporarily strung for convenience of transport] (HSN 7104)
In Schedule IV – 0.125%-
1. The entry, “precious stones (other than diamonds) and semi-precious stones, whether or not worked or graded but not strung, mounted or set; ungraded precious stones (other than diamonds) and semi-precious stones, temporarily strung for convenience of transport”, shall be substituted.
2. 125% to Nil on Precious stones (other than diamonds), ungraded precious stones (other than diamonds).
3. the entry, “Synthetic or reconstructed precious or semiprecious stones, whether or not worked or graded but not strung, mounted or set; ungraded synthetic or reconstructed precious or semiprecious stones, temporarily strung for convenience of transport”, shall be substituted.
4. 125% to Nil on Synthetic or reconstructed precious stones.
The following is are inserted as exempted :-
√ Dried tamarind
√ Plates and cups made up of leaves/ flowers/bark
♦ Notification No. 16/2019 – Seeks to amend notification No 3/2017- Central Tax (Rate) dated 28.6.2017 so as to extend concessional CGST rates to specified projects under HELP/OALP, and other changes, following item is enserted.
-
- Petroleum operations or coal bed methane operations undertaken under specified contracts under the Hydrocarbon Exploration Licensing Policy (HELP) or Open Acreage Licensing Policy (OALP).
♦ Notification No. 17/2019 – Seeks to amend notification No 26/2018- Central Tax (Rate) dated 31.12.2018, so as to exempt CGST on supplies of silver and platinum by nominated agencies to registered persons.
-
- The word “gold”, wherever it occurs, the words, “gold, silver or platinum”, shall be substituted.
- The word and figures, “heading 7108”, the word and figures, “Chapter 71”, shall be substituted.
In nutshell, It extend the scope of exemptions.
♦ Notification No. 18/2019- Seeks to amend notification No 26/2018- Central Tax (Rate) dated 31.12.2018, so as to exempt CGST on supplies of silver and platinum by nominated agencies to registered persons.
-
- To give composition scheme for supplier of services with a tax rate of 6% having annual turn over in preceding year upto Rs 50 lakhs , Aerated Water is also added in the annexure.
- It means that who is engaged in making supplies of this goods that will also not eligible for benefit of notification No 26/2018- Central Tax (Rate) dated 31.12.2018.
♦ Notification No. 19/2019- Seeks to exempt supply of goods for specified projects under FAO. (Food and Agricultural Organization of the United Nations).
All the goods supplied to the Food and Agricultural Organisation of the United Nations (FAO) for execution of projects listed below in the Annexure, from whole of the Central Tax leviable thereon under section 9 of the said Act, subject to the condition that an officer not below the rank of Deputy Secretary to the Government of India in the Ministry of Ministry of Agriculture and Farmers Welfare certifies, namely:-
-
- the quantity and description of the goods; and
- that the said goods are intended for the purpose of use in execution of said projects.
ANNEXURE
1. Strengthening Capacities for Nutrition-sensitive Agriculture and Food systems.
2. Green Ag: Transforming Indian Agriculture for Global Environment benefits and the conservation of Critical Biodiversity and Forest landscape.
♦ Notification No. 20/2019– Seeks to amend notification No. 11/2017- Central Tax (Rate) so as to notify CGST rates of various services as recommended by GST Council in its 37th meeting held on 20.09.2019.
1. To reduce the rate of GST on hotel accommodation service as below: –
Transaction Value per Unit (Rs) per day – GST
Rs. 1000 and less – Nil
Rs. 1001 to Rs 7500 – 12%
Rs. 7501 and more – 18%
2. Supply of restaurant service other than at specified premises at 2.50 % provided that credit of input tax charged on goods and services used in supplying the service has not been taken.
3. Supply of goods, being food or any other article for human consumption or any drink, by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms at 2.50 % provided that credit of input tax charged on goods and services used in supplying the service has not been taken.
4. Supply of outdoor catering , at premises other than “specified premises‟ provided by any person other than –
a. Suppliers providing hotel accommodation at specified premises.
b. Suppliers located in specified premises‟.
at 2.50 % provided that credit of input tax charged on goods and services used in supplying the service has not been taken.
5. Composite supply of outdoor catering together with renting of premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function) at premises other than „specified premises‟ provided by any person other than-
a. suppliers providing hotel accommodation at specified premises , or
b. suppliers located in specified premises
at 2.50 % provided that credit of input tax charged on goods and services used in supplying the service has not been taken.
6. Except above 2 to 5, GST rate will be 18 % with ITC.
7. The description will be Rental services of transport vehicles with operators as the word “or without” has deleted. It means that In case of Rental services of transport vehicles with operators then respective rate will be charge as mentioned in notification in notification no. 11/2017 – – Central Tax (Rate), dated the 28th June, 2017 and Rental services of transport vehicles without operators will be taxed at 18%.
8. Following service is newly added which will be taxed at 12 % :
a. Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both.
9. Support services to agriculture, hunting, forestry, fishing, mining and utilities shall be inserted in SAC code of 9986.
10. Services by way of job work in relation to diamonds falling under chapter in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) will be taxed at 1.50%.
11. Services by way of job work other than specified shall be taxed at 12%.
12. Services by way of job work in relation to bus body building will be taxed at 18%.
13. In the below paragraph 2A, the word “registered” shall be omitted.
(Where a registered person transfers development right or FSI (including additional FSI) to a promoter against consideration, wholly or partly, in the form of construction of apartments, the value of construction service in respect of such apartments shall be deemed to be equal to the Total Amount charged for similar apartments in the project from the independent buyers, other than the person transferring the development right or FSI (including additional FSI), nearest to the date on which such development right or FSI (including additional FSI) is transferred to the promoter, less the value of transfer of land, if any, as prescribed in paragraph 2 above)
14. The following clauses shall be inserted, namely :-
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.
Outdoor catering 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, at Exhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event based and occasional in nature.
Hotel accommodation means supply, by way of accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes including the supply of time share usage rights by way of accommodation.
Declared tariff means charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.
Specified premises means premises providing „hotel accommodation‟ services having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent.
♦ Notification No. 21/2019– Seeks to amend notification No. 12/2017-Central Tax (Rate) to exempt services as recommended by GST Council in its 37th meeting held on 20.09.2019.
> The following entry has inserted new :-
√ Services provided by and to Federation International de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020 to be hosted in India Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020.”
√ Services by way of storage or warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee and tea.
√ Services of life insurance provided or agreed to be provided by the Central Armed Police Forces (under Ministry of Home Affairs) Group Insurance Funds to their members under the Group Insurance Schemes of the concerned Central Armed Police Force
√ Services of general insurance business provided under Bangla Shasya Bima.
√ Services by way of right to admission to the events organised under FIFA U-17 Women’s World Cup 2020.
> The period of exemption is exceeded by one year for following exemption :-
√ Services by way of transportation of goods by an aircraft from customs station of clearance in India to a place outside India provided that nothing contained in this serial number shall apply after the 30th day of September, 2020.
√ Services by way of transportation of goods by a vessel from customs station of clearance in India to a place outside India provided that nothing contained in this serial number shall apply after the 30th day of September, 2020.
♦ Notification No. 22/2019– Seeks to amend notification No. 13/2017-Central Tax (Rate) so as to notify services under reverse charge mechanism (RCM) as recommended by GST Council in its 37th meeting held on 20.09.2019.
√ To allow the registered authors an option to pay GST on royalty charged from publishers under forward charge ig they took registration within the timeline as specified in this notification.
√ The following service are newly inserted under RCM provisions :-
-
- Services provided by way of renting of a motor vehicle provided to a body corporate(Supplier will be Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business and recipient will be Anybody corporate located in the taxable territory).
- Services of lending of securities under Securities Lending Scheme, 1997 (“Scheme”) of Securities and Exchange Board of India (“SEBI”), as amended(Supplier will be Lender i.e. a person who deposits the securities registered in his name or in the name of any other person duly authorized on his behalf with an approved intermediary for the purpose of lending under the Scheme of SEBI and recipient will be Borrower i.e. a person who borrows the securities under the Scheme through an approved intermediary of SEBI.)
♦ Notification No. 23/2019:- Seeks to amend notification No. 4/2018 – Central Tax (Rate), dated the 25th January, 2018, by adding an explanation on the applicability of provisions related to supply of development rights.
√ The notification issued notification No. 4/2018 – Central Tax (Rate), dated the 25th January, 2018 shall not applicable on or after 1st April, 2019.
♦ Notification No. 24/2019 :- Seeks to amend notification No. 7/2019 – Central Tax (Rate), dated the 29th March, 2019 by amending the entry related to cement.
♦ Notification No. 25/2019 :- Seeks to notify the grant of alcoholic liquor licence neither a supply of goods nor a supply of service as per Section 7(2) of CGST Act, 2017. The following activities or transactions undertaken by the State Governments shall be treated neither as a supply of goods nor a supply of service, namely:-
√ Service by way of grant of alcoholic liquor licence, against consideration in the form of license fee or application fee or by whatever name it is called.
Notifications – Central Tax dated September 30, 2019
♦ Notification No. 43/2019 :- Seeks to amend notification No 14/2019- Central Tax dated 7.3.2019 so as to exclude manufacturers of aerated waters from the purview of composition scheme .It means that manufacturer of the aerated waters having HSN code 2202 10 10 shall not be eligible to opt for composition leavy.
(Author can be reached at Mail id- gst@misandassociates.com)
Author Bio
