Circular No 164/20/2021-GST DATED 06.10.2021– Let us understand in simple manner some of important changes-
1. Services by cloud kitchens /central kitchens-
Restaurant service includes-
♦ Services provided by Restaurants, Cafes, eating facilities include takeaway services, room services and door –delivery of food.
♦ Take-away services and door delivery services of food are also considered restaurant services so it is clearly clarified that service provided by cooking and supply of food by cloud kitchens are covered under restaurant service and therefore attract 5% GST without ITC.
2. Supply of service by ice cream parlors-
Ice –cream parlors do not engage in any form of cooking so not covered under restaurant service as they only sell already cooked ice cream so it is supply of goods that would attract GST @18%.
3. Coaching services supplied by coaching institutions and NGOs under the central sector scheme of ‘Scholarships for students with Disabilities”
Services provided by any institutions/NGOs under scheme of ‘Scholarships for students with Disabilities’’ where expenditure is borne by govt is covered under notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 and hence exempt from GST.
4. GST on overloading charges at toll –plaza-
Overloading charges are effectively higher toll charges so same treatment as given to toll charges.
5. Renting of vehicles to State Transport Undertakings and Local Authorities-
Earlier ,services by way of giving on hire to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or (aa) to a local authority, an Electrically Operate vehicle meant to carry more than twelve passengers exempt under GST . Now it is clarified that the expression “giving on hire” in Sl. No. 22 of the notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 includes renting of vehicles so exempt under GST.
6. Services supplied by contract manufacturers to brand owners for manufacture of alcoholic liquor for human consumption:
Earlier, GST RATE of 5 % on services by way of job work in relation to food and food products falling under chapters 1 to 22 in the first Schedule to the Customs Tariff Act, 1975. Now it is clarified that the expression “food and food products” in the said entry excludes alcoholic beverages for human consumption. As such, in common parlance also alcoholic liquor is not considered as food. Accordingly, services by way of job work in relation to manufacture of alcoholic liquor for human consumption are not eligible for the GST rate of 5% prescribed under the said entry and now GST at rate of 18 % on such type of job-work would be levied.
Queries/doubts related to above mailed at [email protected]