The CBIC vide Notification No. 06/2021 Central Tax (Rate) dated September 30, 2021 has further amended Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017 , as under-
1. Section 12AB shall be put in addition to 12AA, wherever mentioned in the notification dated 28th June, 2017;
2. A rationalized rate of 18% shall be charged instead of 12% and 18% earlier, for temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property Rights;
3. A rationalized rate of 18% shall be charged instead of 5% earlier, for services by way of job work in relation to manufacture of alcoholic liquor for human consumption;
4. A rationalized rate of 18% shall be charged instead of 12% earlier, for services by way of printing of goods such as newspapers, books(including Braille books), journals and periodicals;
5. A rate of 18% shall be charged for services by way of to admission to theme parks, water parks and any other place having joy rides, merry go rounds, go carting and ballet;
6. A rate of 28% shall be charged for services by way of to admission to casinos or race clubs or any place having casinos or race clubs and sporting events like Indian Premier League;
7. A new group of services to be created “Multimodal Transport of goods from a place in India to another place in India” under Service Code 996541
Applicability of New Rates:
Applicability of tax rates in the case of change in rate of tax in respect of supply of goods or services is governed by Section 14 of CGST Act, 2017, which is reproduced as under:
1. in case the goods or services or both have been supplied before the change
in rate of tax
1. where the invoice for the same has been issued and the payment is also received after the change in rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of invoice, whichever is earlier; or
2. where the invoice has been issued prior to the change in rate of tax but payment is received after the change in rate of tax, the time of supply shall be the date of issue of invoice; or
3. where the payment has been received before the change in rate of tax, but the invoice for the same is issued after the change in rate of tax, the time of supply shall be the date of receipt of payment;
2. in case the goods or services or both have been supplied after the change in rate of tax,––
1. where the payment is received after the change in rate of tax but the invoice has been issued prior to the change in rate of tax, the time of supply shall be the date of receipt of payment; or
2. where the invoice has been issued and payment is received before the change in rate of tax, the time of supply shall be the date of receipt of payment or date of issue of invoice, whichever is earlier; or
3. where the invoice has been issued after the change in rate of tax but the payment is received before the change in rate of tax, the time of supply shall be the date of issue of invoice.
The above provisions are explained with an example, wherein there can be two scenarios, completion of service is either, before or after, the change in rate of tax. There are 3 events, we need to take note of- Date of Completion of Service, Date of Invoice, and Date of Payment. Date of Change in Rate of Tax would be 01/10/2021.
Scenario 1 (Before the change in rate of tax)–
Completion of Service – 25/09/2021
Invoice Date- 02/10/2021
Payment Date- 03/10/2021
Time of Supply – Invoice Date(earlier)- 02/10/2021
Invoice Date- 26/09/2021
Payment Date- 03/10/2021
Time of Supply – Invoice Date (whichever lies with Completion)- 26/09/2021
Invoice Date- 03/10/2021
Payment Date- 26/09/2021
Time of Supply – Payment Date (whichever lies with Completion)- 26/09/2021
Scenario 2 (After the change in rate of tax)–
Completion of Service – 02/10/2021
Invoice Date- 25/09/2021
Payment Date- 03/10/2021
Time of Supply – Payment (whichever lies with Completion)- 03/10/2021
Invoice Date- 26/09/2021
Payment Date- 27/09/2021
Time of Supply – Invoice Date (Earlier)- 26/09/2021
Invoice Date- 03/10/2021
Payment Date- 26/09/2021
Time of Supply – Invoice Date (whichever lies with Completion)- 03/10/2021
For any further queries/clarifications, please feel free to reach out at [email protected]
Author Bio
Any change in the latest GST amendment with regard to civil work contract. What is the HSN / SAC No.
and also the % of GST.