CBIC Notice calling for feedback/ suggestions from stakeholders on Harmonization of GST Rate Schedule on Services and the Classification of Services adopted for GST

As per Notification No. 12/2017-Central Tax dated 28.06.2017, as amended by Notification No. 78/2020-Central Tax dated 15.10.2020, taxpayers having turnover up to Rs. 5 Crore in the previous financial year are required to declare classification of services at a 4-digit level and those having turnover above Rs. 5 Crore at a 6-digit level.

2. Under GST, the Scheme of Classification of services adopted is based on UNCPC (UN Central Product Classification of Goods and Services). However, while the UNCPC adopts a 5 digit classification, the classification adopted for GST is a 4-digit classification with digits 99 pre-fixed to indicate that these are services. This scheme of classification has been annexed to the Rate Notification No. 11/2017-CT(R) dated 28.06.2017.

3. In the said Notification, the GST rate schedule specifying the applicable GST rates for different services does not mention the classification of services at the six digit level. Therefore, an attempt has been made to harmonize the GST Rate Schedule with the Classification of Services with a view to promote ease of doing business. The document annexed with this note (pages 1 to 74) is a self-contained draft schedule of GST rates on services, in which the service code (6-digit), the description of the service and the applicable rate, along with the condition applicable, are given together. Also, the numerous conditions specified in the existing rate notification have been standardized, coded and moved to a separate table which has made the main body of the notification easier to read.

4. All are requested to kindly provide feedback/ suggestions on the annexed draft

schedule of GST rates on services latest by 31st January 2024. The same may be mailed at the email id js-tru2@gov.in

*****

Enclosed: Draft rate schedule of services at 6 digit level of classification

Government of India
Ministry of Finance

(Department of Revenue)

Notification No. <>Central Tax (Rate)

New Delhi, Dated <>

G.S.R….. (E).- In exercise of the powers conferred by sub-section (1),sub-section (3) and sub-section (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15,sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, and in supersession of notification of the Government of India in the Ministry of Finance (Department of Revenue), Notification No. 11/2017-CT(R) dated 28.06.2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 690(E), dated the 28th June, 2017, except as respects things done or omitted to be done before such supersession, hereby notifies that the central tax, on the intra-State supply of services of description as specified in column (4) of the Schedule below, falling under Chapter, Section ,Heading or Service Code (Tariff) as specified in column (2) and column (3), shall be levied at the rate as specified in the corresponding entry in column (5), subject to any of the condition(s) specified in the corresponding entry in column (6) of the said Schedule:-

Schedule

S. No. Chapter, Section, Heading or Group Service
Code
(Tariff)
Description of the Service Rate (Percent) Condition
(1) (2) (3) (4) (5) (6)
1 Chapter 99 All Services
2 Section 5 Construction Services
3 Heading

9954

Construction services
4 Group

99541

Construction services of buildings
5 995411 Construction services of affordable residential apartments by a promoter in a Residential Real Estate Project or Real Estate Project other than Residential Real Estate Project, intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier. 0.75 1
6 995412 Construction services of residential apartments other than affordable residential apartments by a promoter in a Residential Real Estate Project or Real Estate Project other than Residential Real Estate Project, intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier. 3.75 1
7 995413 Construction services of commercial apartments by a promoter in a Residential Real Estate Project, intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier. 3.75 1
8 995414 Construction of a residential apartment by a promoter in an ongoing project under any of the schemes or categories specified below in respect of which the promoter has exercised option to pay central tax on construction of apartments at the rates as specified for this item: –

(i) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;

(ii) a civil structure or any other original works pertaining to the “ln-situ redevelopment of
existing slums using land as a resource, under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban)

(iii) a civil structure or any other original works pertaining to the “Beneficiary led individual house construction / enhancement” under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana;

(iv) a civil structure or any other original works pertaining to the “Economically Weaker Section (EWS) houses” constructed under the Affordable Housing in partnership by State or Union territory or local authority or urban development authority under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban)

6 2
(v) a civil structure or any other original works pertaining to the “houses constructed or acquired under the Credit Linked Subsidy Scheme for Economically Weaker Section (EWS)/ Lower Income Group (LIG)/ Middle Income Group-1 (MlG-1)/ Middle Income Group-2 (MlG-2)” under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban)

(vi) a single residential unit otherwise than as a part of a residential complex;

(vii) low-cost houses up to a carpet area of 60 square meters per house in a housing project approved by competent authority empowered under the ‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India;

(viii) low cost houses up to a carpet area of 60 square meters per house in a housing project approved by the competent authority under- (1) the “Affordable Housing in Partnership” component of the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana; (2) any housing scheme of a State Government;

(ix) low-cost houses up to a carpet area of 60 square meters per house in an affordable housing project which has been given infrastructure status vide notification of Government of India, in Ministry of Finance, Department of Economic Affairs vide F. No. 13/6/2009-INF, dated the 30th March, 2017;

(x) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017.

9  

 

995415 Construction services of :

a. residential apartments by a promoter in an ongoing project, other than affordable residential apartments, in respect of which the promoter has exercised option to pay central tax on construction of apartments at the rates as specified for this item in the manner prescribed.

b. commercial apartments (shops, offices, godowns etc.) by a promoter in a REP other than RREP Explanation: Supply by way of services specified at 995411, 995412, 995413 and 995414 shall attract central tax prescribed against them in column (5) subject to conditions specified against them in column (6) and shall not be levied at the rate as specified under this entry.

 

9

 

2

10 995416 Construction services of single dwelling, multi dwelling, multi-storied residential buildings, other residential buildings such as old age homes,
homeless shelters, hostels and the like, other than services specified at 995411 to 995415.
9
11 995417 (i) Construction services of commercial buildings such as office buildings, exhibition and marriage halls, malls, hotels, restaurants, airports, rail or road terminals, parking garages, petrol and service stations, theatres and other similar buildings

(ii) Construction services of industrial buildings such as buildings used for production activities (used for assembly line activities), workshops, storage buildings and other similar industrial buildings

(iii) Construction services of other non-residential buildings such as educational institutions, hospitals, clinics including veterinary clinics, religious establishments, courts, prisons, museums and other similar.

9
12 995418 Services by way of house-keeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017 2.5 3
13 995419 Construction services of other buildings nowhere else classified including construction services involving repair, alterations, additions, replacements, renovation, maintenance or remodeling of the buildings. 9 2
14 Group 99542 General construction services of civil engineering works
15 995421 General construction services of highways, streets, roads, bridges and tunnels for roadways and highways 9
16 995422 General construction services of harbours, seaports and the like 9
17 995423 General construction services of long-distance underground/ overland/submarine pipelines (gas/oil etc.), communication and electric power lines (cables); pumping stations and related works; transformer stations and related works 9
18 995424 General construction services of local water and sewage pipelines, electricity and communication cables and related works 9
19 995425 General construction services of railways, rail tracks, platforms, bridges, tunnels, electric power lines, transformer stations and other related works for railways 9
20 995426 General construction services of airports, airfields, runways, bridges, tunnels, electric power lines, transformer stations and other related works for airports 9
21 995427 General construction services of waterways, dams, water mains and lines, irrigation and other waterworks 6 4
9
22 995428 Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 and associated services, in respect of offshore works contract relating to oil and gas exploration and production (E&P) in the offshore area beyond 12 nautical miles from the nearest point of the appropriate base line. 6
23 995429 General construction services of other civil engineering works nowhere else classified
including construction services involving repair, alterations, additions, replacements, renovation, maintenance or remodeling of the buildings covered by service codes 995421 to 995428 above.
9
24 Group 99543 Site preparation services
25 995431 Demolition services 6 4
9
26 995432 Site formation and clearance services including preparation services to make sites ready for subsequent construction work, test drilling and boring and core extraction, digging of trenches 6

9

4

27 995433 Excavating and earthmoving services 6 4
9
28 995434 Water well drilling services and septic system installation services 6 4
9
29 995439 Other site preparation services nowhere else classified 6 4
9
30 Group

99544

Assembly and erection of prefabricated constructions
31 995441 Installation, assembly and erection services of prefabricated buildings 9
32 995442 Installation, assembly and erection services of other prefabricated structures and constructions 9
33 995443 Installation services of all types of street furniture (such as bus shelters, benches, telephone booths, public toilets, and the like) 9
34 995449 Other assembly and erection services nowhere else classified 9
35 Group

99545

Special trade construction services
36 995451 Pile driving and foundation services 9
37 995452 Building framing and roof framing services 9
38 995453 Roofing and waterproofing services 9
39 995454 Concrete services 9
40 995455 Structural steel erection services 9
41 995456 Masonry services 9
42 995457 Scaffolding services 9
43 995459 Other special trade construction services nowhere else classified 9
44 Group

99546

Installation services
45 995461 Electrical installation services including Electrical wiring and fitting services, fire alarm installation services, burglar alarm system installation services 9
46 995462 Water plumbing and drain laying services 9
47 995463 Heating, ventilation and air conditioning equipment installation services 9
48 995464 Gas fitting installation services 9
49 995465 Insulation services 9
50 995466 Lift and escalator installation services 9
51 995469 Other installation services nowhere else classified 9
52 Group

99547

Building completion and finishing services
53 995471 Glazing services 9
54 995472 Plastering services 9
55 995473 Painting services 9
56 995474 Floor and wall tiling services 9
57 995475 Other floor laying, wall covering and wall

papering services

9
58 995476 Joinery and carpentry services 9
59 995477 Fencing and railing services 9
60 995479 Other building completion and finishing services nowhere else classified 9
61 Section 6 Distributive Trade Services;

Accommodation, Food and Beverage

Service; Transport Services; Gas and
Electricity Distribution Services

62 Heading

9961

Services in wholesale trade
63 Group

99611

Services in wholesale trade
64 996111 Services provided for a fee or commission or on contract basis on wholesale trade

Explanation- This service does not include sale or purchase of goods but includes:

• Services of commission agents, commodity brokers, and auctioneers and all other traders who negotiate whole sale commercial transactions between buyers and sellers, for a fee or commission

• Services of electronic whole sale agents and brokers

• Services of whole sale auctioning houses

9
65 Heading 9962 Services in retail trade
66 Group 99621 Services in retail trade
67 996211 Services provided for a fee or commission or on contract basis on retail trade

Explanation- This service does not include sale or purchase of goods but includes:

• Services of commission agents, commodity brokers, and auctioneers and all other traders who negotiate retail commercial transactions between buyers and sellers, for a fee or commission

• Services of electronic retail agents and brokers

• Services of retail auctioning houses

9
68 Heading

9963

Accommodation, food, and beverage services
69 Group

99631

Accommodation services
70 996311 Supply of ‘hotel accommodation’ service other than those covered by SAC 996321 6 5
9
71 Group

99632

Other accommodation services
72 996321 Room or unit accommodation services provided by student residences, Hostels, Paying Guest and the like 6 5
9
73 Group

99633

Food, edible preparations, alcoholic and non-alcoholic beverages serving services
74 996331 ‘Restaurant service’ supplied by restaurants, cafes, Hotels, Inn, Guest House, Club, canteen
and similar eating facilities including takeaway services, room services and door delivery of food other than at ‘specified premises’.
2.5 6
75

 

 

 

996332

 

Supply of ‘outdoor catering’, 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’.

2.5

 

6

 

76 996333 Catering services in trains, flights and the like It includes:

(i) 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.

(ii) Preparation or supply services of food, edible preparations, alcoholic and non-alcoholic beverages to airlines and other transportation
operators

2.5 6
77 996334 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‟
2.5 6
78  

 

996339 Other food, edible preparations, alcoholic and non-alcoholic beverages serving services. Explanation:

(a) For the removal of doubt, it is hereby clarified that, supplies covered by SAC 996331, 996332, 996333, 996334 shall attract central tax prescribed against them in column (5) subject to conditions specified against them in column (6), which is a mandatory rate and shall not be levied at the rate as specified under this entry.

(b)This entry covers supply of ‘restaurant service’ at ‘specified premises’

(c) This entry covers supply of ‘outdoor catering’, provided by suppliers providing ‘hotel accommodation’ at ‘specified premises’, or suppliers located in ‘specified premises’.

(d) This entry covers 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) provided by suppliers providing ‘hotel accommodation’ at ‘specified premises’, or suppliers located in ‘specified premises’.

9

 

 

79 Heading 9964 Passenger transport services
80 Group 99641 Local and sightseeing transportation services of passengers by land
81 996411 Local land transport service of passengers by Railways 2.5 7
82 996412 Local land transport service of passengers by metro rail/monorail/tramway Nil
83 996413 Non-scheduled local bus and coach charter services 2.5 8
6
84 996414 scheduled local bus and coach charter services 2.5 8
6
85 996415 Taxi-services including radio taxi and other similar services 2.5 8
6
86 996416 Local land transport service of passengers by any other motor vehicle including auto-rickshaws, three-wheelers, scooters etc. 2.5 8
6
87 996417 Transport services of passengers by ropeways 2.5 9
88 996418 Sightseeing transportation services by rail or road 9
89 996419 Other land transportation service of passengers nowhere else classified 9
90 Group

99642

Local and sightseeing transportation services of passengers by water and air
91 996421 Local water transport service of passengers by ferries and the like 9
92 996422 Local water transport service of passengers by cruises and the like 9
93 996423 Sightseeing transportation services by water 9
94 996429 Other local and sightseeing transportation service of passengers nowhere else classified 9
95 Group

99643

Long-distance transport service of passengers by land
96 996431 Long-distance transport service of passengers through rail network by railways 2.5 7
97 996432 Scheduled long-distance transport services of passengers through road by bus and coach services including stage carriage, contract carriage and the like 2.5 8
6
98 996433 Non-scheduled long-distance transport services of passengers through road by bus and coach services including stage carriage, contract carriage and the like 2.5 8
6
99 996434 Long-distance transport service of passengers by any motor vehicle other than bus including
motorcab, maxicab and radio taxi
2.5 8
6
100 996439 Other long distance transport service of passengers by land nowhere else specified 9
101 Group

99644

Long-distance transport service of passengers by water
102 996441 Coastal water transport service of passengers by ferries and the like 9
103 996442 Coastal water transport service of passengers by cruise ships and the like 9
104 996443 Inland water transport service of passengers by ferries and the like Nil
105 996444 Inland water transport service of passengers by cruise ships and the like Nil
106 996445 International water transport services of passengers by ferries, cruise ships and the like 9
107 996449 Other long distance transport service of passengers by water nowhere else specified 9
108 Group

99645

Long-distance transport service of passengers by air
109 996451 Domestic scheduled air transport service of passengers in economy class 2.5 9
110 996452 Domestic scheduled air transport service of passengers in other than economy class 6
111 996453 Domestic non-scheduled air transport service of passengers 2.5 10
6
112 996454 International scheduled air transport service of passengers in economy class 2.5 9
113 996455 International scheduled air transport service of passengers in other than economy class 6
114 996456 International non-scheduled air transport service of passengers 6
115 996459 Other long-distance transportation service of passengers by air nowhere else specified including space transport service of passengers 9
116 Heading

9965

Goods Transport Services
117 Group

99651

Land transport services of Goods
118 996511 Road transport services of goods including letters, parcels, live animals, containers and the like in refrigerated vehicles, trucks, trailers or any other motor vehicle by a goods transport agency. 2.5 3
6 11
119 996512 Railway transport services of goods including letters, parcels, live animals, household and office furniture, intermodal containers, bulk cargo and the like by other than Container Transport Operators (CTOs) 2.5 7
120 996513 Transport services via pipeline of petroleum and petroleum products including natural gas 2.5 3
121 996514 Transport services via pipeline of other chemicals, coal slurry and of other goods 9
122 996515 Moving services of household goods, office equipment and furniture 2.5 3
6 11
123 996516 Road transport services of goods including letters, parcels, live animals, containers and the like in referigerated vehicles, trucks, trailers or any other motor vehicle or in man or animal driven vehicles by any person other than a goods transport agency Nil
124 996517 Railway transport services of goods including letters, parcels, live animals, household and office furniture, intermodal containers, bulk cargo and the like by Container Transport Operators (CTOs) other than Railways 6
125 996518 Transport of goods by ropeways 5 9
126 996519 Other land transport services of goods nowhere else classified 9
127 Group 99652 Water transport services of goods
128 996521 Coastal water transport services of goods by refrigerated vessels, tankers, bulk cargo vessels, container ships and the like 2.5 12
129 996522 Inland water transport services of goods by refrigerated vessels, tankers and other vessels Nil
130 996523 International water transport services of goods by refrigerated vessels, tankers, bulk cargo vessels, container ships and the like 2.5 12
131 Group

99653

Air and Space transport services of goods
132 996531 Domestic air and space transport services of letters and parcels and other goods 9
133 996532 International air and space transport services of letters and parcels and other goods
134 Group

99654

Multimodal Transport of goods from a place in India to another place in India
135 996540 Multimodal Transport of goods from a place in India to another place in India 6
136 Heading

9966

Rental services of transport vehicles with operators
137 Group

99660

Rental services of road vehicles with operators
138 996601 Rental services of buses and coaches with operator 2.5 8
6
139 996602 Rental services of trucks, trailers or any other vehicle used for carrying goods with operator 6
140 996603 Rental services of other motor vehicles including motor cab or maxicab with operator 2.5 8
6
141 996604 Rental services of passenger vessels with operator 9
142 996605 Rental services of goods vessels with operator 2.5 12
143 996606 Rental service of passenger aircraft with operator 9
144 996607 Rental service of goods aircraft with operator 9
145 996609 Rental service of transport vehicles with operators nowhere else specified 9
146 Heading 9967 Supporting services in transport
147 Group 99671 Cargo handling services
148 996711 Container handling services 9
149 996712 Customs house agent services 9
150 996713 Clearing and forwarding services 9
151 996719 Other cargo and baggage handling services 9
152 Group 99672 Storage and warehousing services
153 996721 Refrigerated storage services 9
154 996722 Bulk liquid or gas storage services 9
155 996729 Other storage and warehousing services 9
156 Group

99673

Supporting services for railway transport
157 996731 Railway pushing or towing services 9
158 996739 Other supporting services for railway transport nowhere else classified 9
159 Group

99674

Supporting services for road transport
160 996741 Bus station services 9
161 996742 Operation services of national highways, state highways, expressways, roads and streets;
bridges and tunnel operation services
9
162 996743 Parking lot services 9
163 996744 Towing services for commercial and private vehicles 9
164 996749 Other supporting services for road transport nowhere else classified 9
165 Group

99675

Supporting services for water transport (coastal, transoceanic and inland waterways)
166 996751 Port and waterway operation services (excluding cargo handling) such as operation services of ports, docks, light houses, light
ships and the like
9
167 996752 Pilotage and berthing services 9
168 996753 Vessel salvage and refloating services 9
169 996754 Maintenance, repair or overhaul services in respect of ships and other vessels, their engines and other components or parts 2.5
170 996759 Other supporting services for water transport nowhere else classified 9
171 Group

99676

Supporting services for air or space transport
172 996761 Airport operatio services (excluding cargo handling) 9
173 996762 Air traffic control services 9
174 996763 Maintenance, repair or overhaul services in respect of aircrafts, aircraft engines and other aircraft components or parts 2.5
175 996768 Other supporting services for air transport 9
176 996769 Supporting services for space transport 9
177 Group

99679

Other supporting transport services
178 996791 Goods transport agency services for road transport 9
179 996792 Goods transport agency services for other modes of transport 9
180 996793 Other goods transport services 9
181 996799 Other supporting transport services nowhere else classified 9
182 Heading

9968

Postal and courier services
183 Group

99681

Postal and courier services
184 996811 Postal services including post office counter services, mail box rental services 9
185 996812 Courier services 9
186 996813 Local delivery services 9
187 996819 Other Delivery Services nowhere else classified 9
188 Heading

9969

Electricity, gas, water and other distribution services
189 Group

99691

Electricity and gas distribution services
190 996911 Electricity transmission or distribution services 9
191 996912 Gas distribution services 9
192 Group

99692

Water distribution and other services
193 996921 Water distribution services 9
194 996922 Services involving distribution of steam, hot water and air conditioning supply and the like 9
195 996929 Other distribution services nowhere else classified 9
196 Section 7 Financial and related services; real estate services; and rental and leasing services
197 Heading

9971

Financial and related services
198 Group

99711

Financial services (except investment banking, insurance services and pension services)
199 997111 Central banking services 9
200 997112 Deposit services 9
201 997113 Credit-granting services including stand-by commitment, guarantees and securities 9
202 997114 Financial leasing services 9
203 997115 Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. Same rate of central tax as on supply of like goods involving transfer of
title in goods
204 997116 Any transfer of right in goods or of undivided share in goods without the transfer of title thereof. Same rate of central tax as on supply of like goods involving transfer of
title in goods
205 997119 Other financial services (except investment banking, insurance services and pension services) 9
206 Group

99712

Investment banking services
207 997120 Investment banking services
208 Group

99713

Insurance and pension services (excluding reinsurance services)
209 997131 Pension services 9
210 997132 Life insurance services 9
211 997133 Accident and health insurance services 9
212 997134 Motor vehicle insurance services 9
213 997135 Service of third party insurance of “goods carriage” 6
214 997136 Marine, aviation, and other transport insurance services 9
215 997137 Freight insurance services and travel insurance services 9
216 997138 Other property insurance services 9
217 997139 Other non-life insurance services 9
218 Group 99714 Reinsurance services
219 997141 Life reinsurance services 9
220 997142 Accident and health reinsurance services 9
221 997143 Motor vehicle reinsurance services 9
222 997144 Marine, aviation and other transport reinsurance services 9
223 997145 Freight reinsurance services 9
224 997146 Other property reinsurance services 9
225 997149 Other non-life reinsurance services 9
226 Group

99715

Services auxiliary to financial services (other than to insurance and pensions)
227 997151 Services related to investment banking such as mergers and acquisition services, corporate finance and venture capital services 9
228 997152 Brokerage and related securities and commodities services including commodity exchange services 9
229 997153 Portfolio management services except pension funds 9
230 997154 Trust and custody services 9
231 997155 Services related to the administration of financial markets 9
232 997156 Financial consultancy services 9
233 997157 Foreign exchange services 9
234 997158 Financial transactions processing and clearing house services 9
235 997159 Other services auxiliary to financial services (other than to insurance and pensions) 9
236 Group

99716

Services auxiliary to insurance and pensions
237 997161 Services auxiliary to insurance and pensions
238 997162 Insurance claims adjustment services 9
239 997163 Actuarial services 9
240 997164 Pension fund management services 9
241 997169 Other services auxiliary to insurance and pensions 9
242 Group

99717

Services of holding financial assets
243 997171 Services of holding equity of subsidiary companies 9
244 997172 Services of holding securities and other assets of trusts and funds and
similar financial entities
9
245 Heading

9972

Real estate services
246 Group

99721

Real estate services involving owned or leased property
247 997211 Rental or leasing services involving own or leased residential property 9
248 997212 Rental or leasing services involving own or leased non-residential property 9
249 997213 Trade services of buildings 9
250 997214 Trade services of time-share properties 9
251 997215 Trade services of vacant and subdivided land 9
252 997219 Other real estate services involving owned or leased property 9
253 Group

99722

Real estate services on a fee or commission basis or on contract basis
254 997221 Property management services on a fee or commission basis or on contract basis 9
255 997222 Building sales on a fee or commission basis or on contract basis 9
256 997223 Land sales on a fee or commission basis or on contract basis 9
257 997224 Real estate appraisal services on a fee or commission basis or on contract basis 9
258 997229 Other real estate services on a fee or commission basis or on contract basis 9
259 Group

99723

Transfer of development rights, FSI or additional FSI
260 997231 Services by way of grant of development rights, FSI or additional FSI 9
261 Heading

9973

Leasing or rental services [without]2 operator
262 Group

99731

Leasing or rental services concerning machinery and equipment [without]2 operator
263 997311 Leasing or rental services concerning transport equipment including containers, without operator Same rate of central tax as on supply of like goods
involving transfer of title of goods
264 997312 Leasing or rental services concerning agricultural machinery and equipment without operator Same rate of central tax as on supply of like goods involving transfer of
title of goods
265 997313 Leasing or rental services concerning construction machinery and equipment without operator Same rate of central tax as on supply of like goods involving transfer of title of goods
266 997314 Leasing or rental services concerning office machinery and equipment (except
computers) without operator
Same rate of central tax as on supply of like goods involving transfer of
title of goods
267 997315 Leasing or rental services concerning computers without operators Same rate of central tax as on supply of like goods involving transfer of
title of goods
268 997316 Leasing or rental services concerning telecommunications equipment without operator Same rate of central tax as on supply of like goods involving transfer of
title of goods
269 997317 Leasing or rental services concerning other machinery and equipment without
operator
Same rate of central tax as on supply of like goods involving transfer of title of goods
270 997318 Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. Same rate of central tax as on
supply of like goods involving transfer of
title in goods
271 997319 Any transfer of right in goods or of undivided share in goods without the transfer of title thereof. Same rate of central tax as on
supply of like goods involving transfer of title in goods
272 Group

99732

Leasing or rental services concerning other goods
273 997321 Leasing or rental services concerning televisions, radios, video cassette recorders, projectors, audio systems and related equipment and accessories (home entertainment equipment) Same rate of central tax as on supply of like goods involving transfer of
title of goods
274 997322 Leasing or rental services concerning video tapes and disks (home entertainment equipment) Same rate of central tax as on supply of like goods involving transfer of
title of goods
275 997323 Leasing or rental services concerning furniture and other household appliances Same rate of central tax as
on supply of like goods involving transfer of
title of goods
276 997324 Leasing or rental services concerning pleasure and leisure equipment Same rate of
central tax as
on supply of like goods involving transfer of title of goods
277 997325 Leasing or rental services concerning household linen, textiles, clothing, and footwear. Same rate of
central tax as
on supply of like goods involving transfer of
title of goods
278 997326 Leasing or rental services concerning do-it- yourself machinery and equipment Same rate of
central tax as
on supply of like goods involving transfer of
title of goods
279 997327 Leasing or rental services concerning other goods Same rate of
central tax as
on supply of like goods involving transfer of
title of goods
280 997328 Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. Same rate of central tax as
on supply of like goods
involving transfer of title of goods
281 997329 Any transfer of right in goods or of undivided share in goods without the transfer of title thereof. Same rate of central tax as on
supply of like goods involving transfer of title in goods
282 Group

99733

Licensing services for the right to use intellectual property and similar products
283 997331 Licensing services for the right to use computer software and databases 9
284 997332 Licensing services for the right to broadcast and show original films, sound recordings, radio and television programme and the like 9
285 997333 Licensing services for the right to reproduce original art works 9
286 997334 Licensing services for the right to reprint and copy manuscripts, books, journals and periodicals 9
287 997335 Licensing services for the right to use research and development products 9
288 997336 Licensing services for the right to use trademarks and franchises 9
289 997337 Licensing services for the right to use minerals including its exploration and evaluation 9
290 997338 Licensing services for right to use other natural resources including telecommunication spectrum 9
291 997339 Licensing services for the right to use other intellectual property products and other resources nowhere else classified 9
292 Section 8 Business and Production Services
293 Heading

9981

Research and development services
294 Group

99811

Research and experimental development services in natural sciences and engineering
295 998111 Research and experimental development services in natural sciences 9
296 998112 Research and experimental development services in engineering and technology 9
297 998113 Research and experimental development services in medical sciences and pharmacy 9
298 998114 Research and experimental development services in agricultural sciences 9
299 Group

99812

Research and experimental development services in social sciences and humanities
300 998121 Research and experimental development services in social sciences 9
301 998122 Research and experimental development services in humanities 9
302 Group

99813

Interdisciplinary research services
303 998130 Interdisciplinary research and experimental development services 9
304 Group

99814

Research and development originals
305 998141 Research and development originals in pharmaceuticals 9
306 998142 Research and development originals in agriculture 9
307 998143 Research and development originals in biotechnology 9
308 998144 Research and development originals in computer related sciences 9
309 998149 Research and development originals in other fields nowhere else classified 9
310 Heading

9982

Legal and accounting services
311 Group

99821

Legal services
312 998211 Legal advisory and representation services concerning criminal law 9
313 998212 Legal advisory and representation services concerning other fields of law 9
314 998213 Legal documentation and certification services concerning patents, copyrights and other
intellectual property rights
9
315 998214 Legal documentation and certification services concerning other documents 9
316 998215 Arbitration and conciliation services 9
317 998219 Other legal services nowhere else classified 9
318 Group

99822

Accounting, auditing and bookkeeping services
319 998221 Financial auditing services 9
320 998222 Accounting and bookkeeping services 9
321 998223 Payroll services 9
322 998229 Other similar services nowhere else classified 9
323 Group

99823

Tax consultancy and preparation services
324 998231 Corporate tax consulting and preparation services 9
325 998232 Individual tax preparation and planning services 9
326 998239 Other tax consultancy and preparation services 9
327 Group 99824 Insolvency and receivership services
328 998240 Insolvency and receivership services 9
329 Heading 9983 Other professional, technical and business services
330 Group

99831

Management consulting and management services; information technology services
331 998311 Management consulting and management services including financial, strategic, human resources, marketing, operations and supply chain management 9
332 998312 Business consulting services including public relations services 9
333 998313 Information technology consulting and support services 9
334 998314 Information technology design and development services 9
335 998315 Hosting and information technology infrastructure provisioning services 9
336 998316 Information technology infrastructure and network management services 9
337 998319 Other information technology services nowhere else classified 9
338 Group 99832 Architectural services, urban and land planning and landscape architectural services
339 998321 Architectural advisory services 9
340 998322 Architectural services for residential building projects 9
341 998323 Architectural services for non-residential building projects 9
342 998324 Historical restoration architectural services 9
343 998325 Urban planning services 9
344 998326 Rural land planning services 9
345 998327 Project site master planning services 9
346 998328 Landscape architectural services and advisory services 9
347 998329 Other architectural services, urban and land planning and landscape architectural services 9
348 Group 99833 Engineering services
349 998331 Engineering advisory services 9
350 998332 Engineering services for building projects 9
351 998333 Engineering services for industrial and manufacturing projects 9
352 998334 Engineering services for transportation projects 9
353 998335 Engineering services for power projects 9
354 998336 Engineering services for telecommunications and broadcasting projects 9
355 998337 Engineering services for waste management projects (hazardous and non-hazardous), for water, sewerage and drainage projects 9
356 998338 Project management services for construction projects 9
357 99833 Engineering services for other projects nowhere else classified 9
358 Group

99834

Scientific and other technical services
359 998341 Geological and geophysical consulting services 9
360 998342 Subsurface surveying services 9
361 998343 Mineral exploration and evaluation 9
362 998344 Surface surveying and map-making services 9
363 998345 Weather forecasting and meteorological services 9
364 998346 Technical testing and analysis services 9
365 998347 Certification of ships, aircraft, dams, and the like 9
366 998348 Certification and authentication of works of art 9
367 998349 Other technical and scientific services nowhere else classified 9
368 Group

99835

Veterinary services
369 998351 Veterinary services for pet animals 9
370 998352 Veterinary services for livestock 9
371 998359 Other veterinary services nowhere else classified 9
372 Group

99836

Advertising services and provision of advertising space or time
373 998361 Advertising Services 9
374 998362 Purchase or sale of advertising space or time, on commission 9
375 998363 Sale of advertising space in print media 2.5
376 998364 Sale of television and radio advertising time 9
377 998365 Sale of internet advertising space 9
378 May check with n/f 998366 Sale of other advertising space or time 9
379 Group

99837

Market research and public opinion polling services
380 998371 Market research services 9
381 998372 Public opinion polling services 9
382 Group 99838 Photography and videography and their processing services
383 998381 Portrait photography services 9
384 998382 Advertising and related photography services 9
385 998383 Event photography and event videography

services

9
386 998384 Specialty photography services 9
387 998385 Restoration and retouching services of photography 9
388 998386 Photographic and videographic processing services 9
389 998389 Other photography and videography and their processing services nowhere else classified 9
390 Group 99839 Other professional, technical and business services
391 998391 Specialty design services including interior design, fashion design, industrial design and
other specialty design services
9
392 998392 Design originals 9
393 998393 Scientific and technical consulting services 9
394 998394 Original compilations of facts or information 9
395 998395 Translation and interpretation services 9
396 998396 Trademarks and franchises 9
397 998397 Sponsorship services and brand promotion services 9
398 998399 Other professional, technical and business services nowhere else classified 9
399 Heading

9984

Telecommunications, broadcasting and information supply services
400 Group

99841

Telephony and other telecommunications services
401 998411 Carrier services 9
402 998412 Fixed telephony services 9
403 998413 Mobile telecommunications services 9
404 998414 Private network services 9
405 998415 Data transmission services 9
406 998419 Other telecommunications services including fax services, telex services nowhere else classified 9
407 Group

99842

Internet telecommunications services
408 998421 Internet backbone services 9
409 998422 Internet access services in wired and wireless mode 9
410 998423 Fax, telephony over the internet 9
411 998424 Audio conferencing and video conferencing over the internet 9
412 998429 Other internet telecommunications services nowhere else classified 9
413 Group

99843

On-line content services
414 998431 On-line text based information such as online books other than e-books, newspapers, periodicals, directories and the like 9
415 998432 On-line audio content 9
416 998433 On-line video content 9
417 998434 Software downloads 9
418 998435 Supply consisting only of e-book.

Explanation. – For the purposes of this notification, “e-books” means an electronic version of a printed book (falling under tariff item 4901 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)) supplied online which can be read on a computer or a hand held device.

2.5
419 998439 Other on-line contents nowhere else classified 9
420 Group

99844

News agency services
421 998441 News agency services to newspapers and periodicals 9
422 998442 Services of independent journalists and press photographers 9
423 998443 News agency services to audiovisual media 9
424 Group

99845

Library and archive services
425 998451 Library services 9
426 998452 Operation services of public archives including digital archives 9
427 998453 Operation services of historical archives including digital archives 9
428 Group

99846

Broadcasting, programming and programme distribution services
429 998461 Radio broadcast originals 9
430 998462 Television broadcast originals 9
431 998463 Radio channel programmes 9
432 998464 Television channel programmes 9
433 998465 Broadcasting services 9
434 998466 Home programme distribution services 9
435 998469 Other broadcasting, programming and programme distribution services 9
436 Heading 9985 Support services
437 Group 99851 Employment services including personnel search, referral service and labour supply service
438 998511 Executive or retained personnel search services 9
439 998512 Permanent placement services, other than executive search services 9
440 998513 Contract staffing services 9
441 998514 Temporary staffing services 9
442 998515 Long-term staffing (pay rolling) services 9
443 998516 Temporary staffing-to-permanent placement services 9
444 998517 Co-employment staffing services 9
445 998519 Other employment and labour supply services nowhere else classified 9
446 Group

99852

Investigation and security services
447 998521 Investigation services 9
448 998522 Security consulting services 9
449 998523 Security systems services 9
450 998524 Armoured car services 9
451 998525 Guard services 9
452 998526 Training of guard dogs 9
453 998527 Polygraph services 9
454 998528 Fingerprinting services 9
455 998529 Other investigation & security services nowhere else classified 9
456 Group

99853

Cleaning services
457 998531 Disinfecting and exterminating services 2.5 13
9
458 998532 Window cleaning services 2.5 13
9
459 998533 General cleaning services 2.5 13
9
460 998534 Specialised cleaning services for reservoirs and tanks 2.5 13
9
461 998535 Sterilisation of objects or premises (operating rooms) 2.5 13
9
462 998536 Furnace and chimney cleaning services 2.5 13
9
463 998537 Exterior cleaning of buildings of all types 2.5 13
9
464 998538 Cleaning of transportation equipment 2.5 13
9
465 998539 Other cleaning services nowhere else classified 2.5 13
9
466 Group

99854

Packaging services
467 998541 Packaging services of goods for others 9
468 998542 Parcel packing and gift wrapping 9
469 998543 Coin and currency packing services 9
470 998549 Other packaging services nowhere else classified 9
471 Group

99855

Travel arrangement, tour operator and related services
472 998551 Reservation services for transportation 9
473 998552 Reservation services for accommodation, cruises and package tours 9
474 998553 Reservation services for convention centres, congress centres and exhibition halls 9
475 998554 Reservation services for event tickets, cinema halls, entertainment and recreational services and other reservation services 9
476 998555 Tour operator services 2.5 14
477 998556 Tourist guide services 9
478 998557 Tourism promotion and visitor information services 9
479 998559 Other travel arrangement and related services nowhere else classified 9
480 Group

99859

Other support services
481 998591 Credit reporting and rating services 9
482 998592 Collection agency services 9
483 998593 Telephone-based support services 9
484 998594 Combined office administrative services Specialised office support services such as 9
485 998595 Specialised office support services such as duplicating services, mailing services, document preparation and the like 9
486 998596 Events, exhibitions, conventions and trade shows organisation and assistance services 9
487 998597 Landscape care and maintenance services 9
488 998599 Other support services nowhere else classified 2.5 15
9
489 Heading

9986

Support services to agriculture, hunting, forestry, fishing, mining and utilities
490 Group

99861

Support services to agriculture, hunting, forestry and fishing
491 998611 Support services to agriculture, forestry, fishing, animal husbandry

Explanation: Support services to agriculture, forestry, fishing, animal husbandry mean –

(i) Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of—

(a)agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing;

(b)supply of farm labour;

(c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential
characteristics of agricultural produce but make it only marketable for the primary market;

(d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;

(e) loading, unloading, packing, storage or warehousing of agricultural produce;

(f) agricultural extension services;

(g) services by any Agricultural Produce Marketing Committee or Board or services
provided by a commission agent for sale or purchase of agricultural produce.

(h) services by way of fumigation in a warehouse of agricultural produce

Nil
492 998612 Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing,
labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or
vegetables.
Nil
493 998613 Carrying out an intermediate production process as job work in relation to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce. Nil
494 998619 Other Support services to agriculture, hunting, forestry and fishing 9
495 Group

99862

Support services to mining
496 998621 Support services to exploration , mining or drilling of petroleum crude or natural gas or both 6
497 998622 Other support services to mining 9
498 Group

99863

Support services to electricity, gas and water distribution
499 998631 Support services to electricity transmission and distribution 9
500 998632 Support services to gas distribution 9
501 998633 Support services to water distribution 9
502 998634 Support services to distribution services of steam, hot water and air- conditioning supply 9
503 998635 Other support services to electricity , gas and water distribution 9
504 Heading 9987 Maintenance, repair and installation (except construction) services
505 Group 99871 Maintenance and repair services of fabricated metal products, machinery and equipment 9 v
506 998711 Maintenance and repair services of fabricated metal products, except machinery and equipment 9
507 998712 Maintenance and repair services of office and accounting machinery , computers and
peripheral equipment
9
508 998713 Maintenance, repair or overhaul services in respect of aircrafts, aircraft engines and other aircraft components or parts 2.5
509 998714 Maintenance, repair or overhaul services in respect of ships and other vessels, their engines and other components or parts of ships and other vessels 2.5
510 998715 Maintenance and repair services of transport machinery and equipment other than those covered by 998713 & 998714 9
511 998716 Services by way of house-keeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic
commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017.
2.5 6
512 998717 Maintenance and repair services of telecommunication equipment and apparatus 9
513 998718 Maintenance and repair services of elevators and escalators, commercial and industrial
machinery
9
514 998719 Maintenance and repair services of other machinery and equipment 9
515 Group

99872

Repair services of other goods
516 998721 Repair services of footwear and leather goods 9
517 998722 Repair services of watches, clocks and jewellery 9
518 998723 Repair services of garments and household textiles 9
519 998724 Repair services of furniture 9
520 998725 Repair services of bicycles 9
521 998726 Maintenance and repair services of musical instruments 9
522 998727 Repair services for photographic equipment and cameras 9
523 998729 Maintenance and repair services of other goods nowhere else classified 9
524 Group

99873

Installation services (other than construction) 9
525 998731 Installation services of fabricated metal products, except machinery and equipment 9
526 998732 Installation services of industrial, manufacturing and service industry machinery and equipment 9
527 998733 Installation services of office and accounting machinery and computers 9
528 998734 Installation services of radio, television and communications equipment and apparatus 9
529 998735 Installation services of professional medical machinery and equipment, and
precision and optical instruments
9
530 998736 Installation services of electrical machinery and apparatus nowhere else classified 9
531 998739 Installation services of other goods nowhere else classified 9
532 Heading 9988 Manufacturing services on physical inputs (goods) owned by others
533 Group 99881 Food, beverage and tobacco manufacturing services
534 998811 Services by way of job work in relation to meat and meat products 2.5
535 998812 Services by way of job work in relation to fish and fish products 2.5
536 998813 Services by way of job work in relation to fruits and vegetables and their products 2.5
537 998814 Services by way of job work in relation to dairy products 2.5
538 998815 Services by way of job work in relation to all other food and food products falling under
Chapters 1 to 22 in the First Schedule to the Customs Tariff Act,1975
2.5
539 998816 Services by way of jobwork in relation to all products falling under Chapter 23 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975), except dog and cat food put up for retail sale falling under tariff item 23091000 of the said Chapter 2.5
540 998817 Services by way of jobwork in relation to manufacture of beverages other than alcoholic liquor for human consumption 2.5
541 998818 Services by way of jobwork in relation to manufacture of tobacco and tobacco products 6
542 998819 Food, beverage and tobacco manufacturing services other than services by way of job work specified above 9
543 Group 99882 Textile, wearing apparel and leather manufacturing services
544 998821 Services by way of job work in relation to textile/textile products falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act,1975 2.5
545 998822 Tailoring services other than by way of jobwork 2.5
546 998823 Services by way of jobwork in relation to leather and leather products 6
547 998829 Textile, wearing apparel and leather manufacturing services other than services by way of job work specified above. 9
548 Group 99883 Wood and paper manufacturing services
549 998831 Services by way of job work in relation to wood and wood products 6
550 998832 Services by way of job work in relation to paper and paper products 6
551 998839 Wood and paper manufacturing services other than services by way of job work specified above 9
552 Group 99884 Petroleum, chemical and pharmaceutical product manufacturing services
553 998841 Services by way of jobwork in relation to coke and refined petroleum products 6
554 998842 Services by way of jobwork in relation to chemical products 6
555 998843 Services by way of jobwork in relation to pharmaceutical products 6
556 998849 Petroleum, chemical and pharmaceutical products manufacturing services other than services by way of job work specified above 9
557 Group 99885 Rubber, plastic and other non-metallic mineral product manufacturing service
558 998851 Services by way of job work in relation to Rubber and rubber products 6
559 998852 Services by way of job work in relation to Plastic and plastic products 6
560 998853 Services by way of job work in relation to other non-metallic mineral and their products 6
561 998859 Rubber, plastic and other non-metallic mineral product manufacturing services, other than services by way of job work specified above. 9
562 Group

99886

Basic metal manufacturing services
563 998861 Services by way of job work in relation to basic metals 6
564 998869 Basic metal manufacturing services, other than services by way of job work specified above 9
565 Group 99887 Fabricated metal product, machinery and equipment manufacturing services
566 998871 Services by way of job work in relation to structural metal product, tank, reservoir and
steam generator
6
567 998872 Services by way of job work in relation to weapon and ammunition 6
568 998873 Services by way of job work in relation to other fabricated metal products and metal treatment services 6
569 998874 Services by way of job work in relation to computer, electronic and optical products 6
570 998875 Services by way of job work in relation to electrical equipments 6
571 998876 Services by way of job work in relation to General-purpose machinery nowhere else
classified
6
572 998877 Services by way of job work in relation to Special- purpose machinery 6
573 998879 Fabricated metal product, machinery and equipment manufacturing services, other than services by way of job work specified above 9
574 Group 99888 Transport equipment manufacturing services
575 998881 Services by way of job work in relation to Motor vehicle and trailer manufacturing other than services by way of job work in relation to bus body building 6
576 998882 Services by way of job work in relation to other transport equipment manufacturing other than services by way of job work in relation to bus body building 6
577 998883 Services by way of job work in relation to bus body building

Explanation- For the purposes of this entry, the term “bus body building” shall include building of body on chassis of any vehicle falling under chapter 87 in the First Schedule to the Customs Tariff Act, 1975.

9
578 998889 Transport equipment manufacturing services, other than job work services specified above 9
579 Group 99889 Other manufacturing services
580 998891 Services by way of any treatment or process on goods belonging to another person, including by way of job work, in relation to (a) printing of newspapers, (b) printing of books, journals and periodicals and (c) printing of all goods falling under Chapter 48 or 49 which attract CGST at 2.5% 2.5
581 998892 Services by way of any treatment or process on goods belonging to another person, including by way of job work, in relation to printing of all goods falling under Chapter 48 or 49 which attract CGST at 6% 6
582 998893 Services by way of job work in relation to diamonds falling under Chapter 71 0.75
583 998894 Services by way of job work in relation to all products other than diamonds falling under
Chapter 71
2.5
584 998895 Services by way of job work in relation to manufacture of umbrella. 6
585 998896 Services by way of job work in relation to manufacture of handicrafts. 2.5
586 998897 Services by way of job work in relation to manufacture of alcoholic liquor for human
consumption
9
587 998898 Other Job work services nowhere else classified 6
588 998899 Other manufacturing services nowhere else classified 9
589 Heading 9989 Other manufacturing services; publishing, printing and reproduction services; materials
recovery services
590 Group 99891 Publishing, printing, and reproduction services
591 998911 Publishing, on a fee or contract basis 9
592 998912 Printing and reproduction services of recorded media, on a fee or contract basis 9
593 Group 99892 Moulding, pressing, stamping, extruding and similar plastic manufacturing services
594 998920 Moulding, pressing, stamping, extruding and similar plastic manufacturing services 9
595 Group 99893 Casting, forging, stamping and similar metal manufacturing services
596 998931 Iron and steel casting services 9
597 998932 Non-ferrous metal casting services 9
598 998933 Metal forging, pressing, stamping, roll forming and powder metallurgy services 9
599 Group 99894 Materials recovery (recycling) services, on a fee or contract basis
600 998941 Metal waste and scrap recovery (recycling) services, on a fee or contract basis 9
601 998942 Non-metal waste and scrap recovery (recycling) services, on a fee or contract basis 9
602 Group 99895 Other manufacturing services; publishing, printing and reproduction services; materials
recovery services
603 998950 Other manufacturing services; publishing, printing and reproduction services; materials recovery services nowhere else classified 9
604 Heading 9991 Public administration and other services provided to the community as a whole; compulsory social security services
605 Group 99911 Administrative services of the government
606 999111 Overall Government public services 9
607 999112 Public administrative services related to the provision of educational, health care, cultural and other social services, excluding social
security service
9
608 999113 Public administrative services related to the more efficient operation of business 9
609 999119 Other administrative services of the government nowhere else classified 9
610 Group 99912 Public administrative services provided to the community as a whole
611 999121 Public administrative services related to External Affairs, Diplomatic and Consular services abroad 9
612 999122 Services related to foreign economic aid 9
613 999123 Services related to foreign military aid 9
614 999124 Military defence services 9
615 999125 Civil defence services 9
616 999126 Police and fire protection services 9
617 999127 Public administrative services related to law courts 9
618 999128 Administrative services related to the detention or rehabilitation of criminals 9
619 999129 Other Public administrative services provided to the community as a whole. 9
620 Group 99913 Administrative services related to compulsory social security schemes
621 999131 Administrative services related to sickness, maternity or temporary disablement benefit
schemes
9
622 999132 Administrative services related to government employee pension schemes; old-age disability or survivors’ benefit schemes, other than for government employees 9
623 999133 Administrative services related to unemployment compensation benefit schemes 9
624 999134 Administrative services related to family and child allowance programmes 9
625 999139 Other administrative services related to compulsory social security schemes 9
626 Heading 9992 Education services
627 Group 99921 Pre-primary education services
628 999210 Pre-primary education services 9
629 Group 99922 Primary education services
630 999220 Primary education services 9
631 Group 99923 Secondary Education Services
632 999231 Secondary education services, general 9
633 999232 Secondary education services, technical and vocational 9
634 Group 99924 Higher education services
635 999241 Higher education services, general 9
636 999242 Higher education services, technical 9
637 999243 Higher education services, vocational 9
638 999249 Other higher education services 9
639 Group 99925 Specialised education services
640 999250 Specialised education services 9
641 Group 99929 Other education and training services and educational support services
642 999291 Cultural education services 9
643 999292 Sports and recreation education services 9
644 999293 Commercial training and coaching services 9
645 999294 Other education and training services nowhere else classified 9
646 999295 Services involving conduct of examination for admission to educational institutions 9
647 999299 Other educational support services 9
648 Heading 9993 Human health and social care services
649 Group 99931 Human health services
650 999311 Inpatient services 9
651 999312 Services provided by a clinical establishment by way of providing room other than Intensive Care Unit(ICU)/ Critical Care Unit (CCU)/ Intensive Cardiac Care Unit (ICCU)/ Neo natal Intensive Care Unit (NICU)] having room charges exceeding Rs 5000/- per day to a person receiving health care services. 2.5 3
652 999313 Medical and dental services 9
653 999314 Childbirth and related services 9
654 999315 Nursing and physiotherapeutic services 9
655 999316 Ambulance services 9
656 999317 Medical laboratory and diagnostic-imaging services 9
657 999318 Blood, sperm and organ bank services 9
658 999319 Other human health services including homeopathy, unani, ayurveda, naturopathy,
acupuncture and the like
9
659 Group 99932 Residential care services for the elderly and disabled
660 999321 Residential health-care services other than by hospitals 9
661 999322 Residential care services for the elderly and persons with disabilities 9
662 Group

99933

Other social services with accommodation
663 999331 Residential care services for children suffering from mental retardation, mental health illnesses or substance abuse 9
664 999332 Other social services with accommodation for children 9
665 999333 Residential care services for adults suffering from mental retardation, mental health illnesses or substance abuse 9
666 999334 Other social services with accommodation for adults 9
667 Group 99934 Social services without accommodation for the elderly and disabled
668 999341 Vocational rehabilitation services 9
669 999349 Other social services without accommodation

for the elderly and disabled nowhere else
classified

9
670 Group 99935 Other social services without accommodation
671 999351 Child day-care services 9
672 999352 Guidance and counseling services nowhere else classified related to children 9
673 999353 Welfare services without accommodation 9
674 999359 Other social services without accommodation 9
675 Heading 9994 Sewage and waste collection, treatment and disposal and other environmental protection services
676 Group 99941 Sewerage, sewage treatment and septic tank cleaning services
677 999411 Services by way of treatment of effluents by a Common Effluent Treatment Plant 6
678 999412 Sewerage and sewage treatment services 9
679 999413 Septic tank emptying and cleaning services 9
680 999419 Other sewerage, sewage treatment and septic tank cleaning services 9
681 Group

99942

Sewage and Waste collection services
682 999421 Collection services of hazardous waste 9
683 999422 Collection services of non-hazardous recyclable materials 9
684 999423 General waste collection services, residential 9
685 999429 Other sewage and waste collection services 9
686 Group 99943 Waste treatment and disposal services
687 999431 Waste preparation, consolidation and storage services 9
688 999432 Hazardous waste treatment and disposal services 9
689 999433 Non-hazardous waste treatment and disposal services 9
690 999439 Other waste treatment and disposal services 9
691 Group 99944 Remediation services
692 999441 Site remediation and clean-up services 9
693 999442 Containment, control and monitoring services and other site remediation services 9
694 999443 Building remediation services 9
695 999449 Other remediation services 9
696 Group 99945 Sanitation and similar services
697 999451 Sweeping and snow removal services 9
698 999459 Other sanitation services 9
699 Group 99949 Others
700 999491 Services by way of treatment or disposal of biomedical waste or the processes incidental thereto by a common biomedical waste
treatment facility to a clinical establishment.
6
701 999499 Other environmental protection services nowhere else classified 9
702 Heading 9995 Services of membership organisations
703 Group 99951 Services furnished by business, employers and professional organisations Services
704 999511 Services furnished by business and employers organisations 9
705 999512 Services furnished by professional organisations 9
706 Group 99952 Services furnished by trade unions
707 999520 Services furnished by trade unions 9
708 Group 99959 Services furnished by other membership organisations
709 999591 Religious services 9
710 999592 Services furnished by political organisations 9
711 999593 Services furnished by human rights organisations 9
712 999594 Services furnished by Cultural and recreational associations 9
713 999595 Services furnished by environmental advocacy groups 9
714 999596 Services provided by youth associations 9
715 999597 Services furnished by Other civic and social organisations 9
716 999598 Home owners associations 9
717 999599 Other services provided by other membership organisations 9
718 Heading 9996 Recreational, cultural and sporting services
719 Group 99961 Audiovisual and related services
720 999611 Sound recording services 9
721 999612 Motion picture, videotape, television and radio programme production services 9
722 999613 Audiovisual post-production services 9
723 999614 Motion picture, videotape and television programme distribution services 9
724 999615 Motion picture projection services 9
725 999616 Services by way of admission to exhibition of cinematograph films where price of admission ticket is one hundred rupees or less 6
726 999617 Services by way of admission to exhibition of cinematograph films where price of admission ticket is above one hundred rupees. 9
727 Group 99962 Performing arts and other live entertainment event presentation and promotion services
728 999621 Performing arts event promotion and organisation services 9
729 999622 Performing arts event production and presentation services 9
730 999623 Performing arts facility operation services 9
731 999624 Services by way of admission or access to circus, Indian classical dance including folk dance, theatrical performance, drama [or planetarium], ballet etc. 9
732 999629 Other performing arts and live entertainment services nowhere else classified 9
733 Group 99963 Services of performing and other artists
734 999631 Services of performing artists including actors, readers, musicians, singers, dancers, television personalities, independent models and the like 9
735 999632 Services of authors, composers, sculptors and other artists, except performing artists 9
736 999633 Original works of authors, composers and other artists except performing artists, painters and sculptors 9
737 Group 99964 Museum and preservation services
738 999641 Museum and preservation services of historical sites and buildings 9
739 999642 Botanical, zoological and nature reserve services 9
740 Group 99965 Sports and recreational sports services
741 999651 Sports and recreational sports event promotion and organisation services 9
742 999652 Sports and recreational sports facility operation services 9
743 999653 Services by way of admission to sporting events like Indian Premier League. 14
744 999659 Other sports and recreational sports services nowhere else classified 9
745 Group 99966 Services of athletes and related support services
746 999661 Services of athletes 9
747 999662 Support services related to sports and recreation 9
748 Group 99969 Other amusement and recreational services
749 999691 Amusement park and similar attraction services 9
750 999692 Gambling and betting services including similar online services

Explanation: It includes Services provided by a race club by way of totalisator or a license to bookmaker in such club.

14
751 999693 Coin-operated amusement machine services 9
752 999694 Lottery services 14
753 999695 Services by way of admission to theme parks, water parks and any other place having joy rides, merry- go rounds, go carting, etc. 9
754 999696 Services by way of admission to casinos or race clubs or any place having casinos or race clubs 14
755 999699 Other recreation and amusement services nowhere else classified 9
756 Heading

9997

Other services
757 Group

99971

Washing, cleaning and dyeing services
758 999711 Coin-operated laundry services 9
759 999712 Dry-cleaning services (including fur product cleaning services) 9
760 999713 Other textile cleaning services 9
761 999714 Pressing services 9
762 999715 Dyeing and colouring services 9
763 999719 Other washing, cleaning and dyeing services 9
764 Group 99972 Beauty and physical well-being services
765 999721 Hairdressing and barbers services 9
766 999722 Cosmetic treatment (including cosmetic or plastic surgery), manicuring and pedicuring services 9
767 999723 Physical well-being services including health club and fitness centre 9
768 999729 Other beauty and physical well-being services 9
769 Group 99973 Funeral, cremation and undertaking services
770 999731 Cemeteries and cremation services 9
771 999732 Undertaking services 9
772 Group 99979 Other miscellaneous services
773 999791 Services involving commercial use or exploitation of any event 9
774 999792 Agreeing to do an act 9
775 999793 Agreeing to refrain from doing an act 9
776 999794 Agreeing to tolerate an act 9
777 999795 Conduct of religious ceremonies or rituals by persons 9
778 999799 Other services nowhere else classified 9
779 Heading 9998 Domestic services
780 Group 99980 Domestic services
781 999800 Domestic services both part time and full time 9
782 Heading 9999 Services provided by extraterritorial organisations and bodies
783 Group 99990 Services provided by extraterritorial organisations and bodies
784 999900 Services provided by extraterritorial organisations and bodies 9
785 Heading 9954 or 9983 or 9987 Service by way of construction or engineering or installation or other technical services, provided in

relation of setting up of following, –

(a) Bio-gas plant

(b) Solar power based devices

(c) Solar power generating system

(d) Wind mills, Wind Operated Electricity Generator (WOEG)

(e) Waste to energy plants / devices

(f) Ocean waves/tidal waves energy
devices/plants

Explanation:- This entry shall be read in
conjunction with serial number 201A of Schedule II of the notification No. 1/2017- Central Tax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) dated 28th June, 2017 vide GSR number 673(E) dated 28th June, 2017.

9
786 Chapter 99 Supply of services other than services by way of grant of development rights, long term lease of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI (including additional FSI) by an unregistered person to a promoter for construction of a project on which tax is payable by the recipient of the services under sub- section 4 of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), as prescribed in notification No. 07 / 2019-Central Tax (Rate), dated 29th March, 2019, published in Gazette of India vide G.S.R. No.254(E), dated 29th March, 2019.

Explanation: This entry is to be taken to apply to all services which satisfy the conditions prescribed herein, even though they may be covered by a more specific chapter, section or heading elsewhere in this notification.

9

2. In case of supply of service specified in column (4), in entries at Sr. No. 5, 6, 7 and 8, involving transfer of land or undivided share of land, as the case may be, the value of such supply shall be equivalent to the total amount charged for such supply less the value of transfer of land or undivided share of land, as the case may be, and the value of such transfer of land or undivided share of land, as the case may be, in such supply shall be deemed to be one third of the total amount charged for such supply.

Explanation. –For the purposes of this paragraph, “total amount” means the sum total of,-

(a) consideration charged for aforesaid service; and

(b) amount charged for transfer of land or undivided share of land, as the case may be including by way of lease or sublease.

2A. Where a 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.

3. Value of supply of lottery shall be 100/112 of the face value or the price notified in the Official Gazette by the organising State, whichever is higher, in case of lottery run by State Government and 100/128 of the face value or the price notified in the Official Gazette by the organising State, whichever is higher, in case of lottery authorised by State Government.

4. Explanation.-For the purposes of this notification,-

(i) Goods includes capital goods.

(ii) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of heading 9988.

(iii) Wherever a rate has been prescribed in this notification subject to the condition that credit of input tax charged on goods or services used in supplying the service has not been taken, it shall mean that, –

(a) credit of input tax charged on goods or services used exclusively in supplying such service has not been taken; and

(b) credit of input tax charged on goods or services used partly for supplying such service and

partly for effecting other supplies eligible for input tax credits, is reversed as if supply of such service is an exempt supply and attracts provisions of sub-section (2) of section 17 of the Central Goods and Services Tax Act, 2017 and the rules made thereunder.

(iv) “affordable residential apartment” shall mean, –

(a) a residential apartment in a project which commences on or after 1st April, 2019, or in an ongoing project in respect of which the promoter has not exercised option in the prescribed form to pay central tax on construction of apartments at the rates as specified against serial number 8 or serial number 9 of the schedule above, as the case may be, having carpet area not exceeding 60 square meter in metropolitan cities or 90 square meter in cities or towns other than metropolitan cities and for which the gross amount charged is not more than forty five lakhs rupees.

For the purpose of this clause, –

(i) Metropolitan cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR) with their respective geographical limits prescribed by an order issued by the Central or State Government in this regard;

(ii) Gross amount shall be the sum total of; –

A. Consideration charged for the services specified at serial number 5 in column (4) in the Schedule above;

B. Amount charged for the transfer of land or undivided share of land, as the case may be including by way of lease or sub lease; and

C. Any other amount charged by the promoter from the buyer of the apartment including preferential location charges, development charges, parking charges, common facility charges etc.

(b) an apartment being constructed in an ongoing project under any of the schemes specified in sub-item (b), sub-item (c), sub-item (d), sub-item (da) and sub-item (db) of item (iv); sub-item (b), sub-item (c), sub-item (d) and sub-item (da) of item (v); and sub-item (c) of item (vi), against serial number 3 of the Table above, in respect of which the promoter has not exercised option to pay central tax on construction of apartments at the rates as specified for item (ie) or (if) against serial number 3, as the case may be;

(v) “agricultural extension” means application of scientific research and knowledge to agricultural practices through farmer education or training;

(vi) “agricultural produce” means any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market;

(vii) “Agricultural Produce Marketing Committee or Board” means any committee or board constituted under a State law for the time being in force for the purpose of regulating the marketing of agricultural produce;

(viii) “an apartment booked on or before the 31st March, 2019” shall mean an apartment which meets all the following three conditions, namely- (a) part of supply of construction of which has time of supply on or before the 31st March, 2019 and (b) at least one instalment has been credited to the bank account of the registered person on or before the 31st March, 2019 and (c) an allotment letter or sale agreement or any other similar document evidencing booking of the apartment has been issued on or before the 31st March, 2019;

(ix) “apartment” shall have the same meaning as assigned to it in clause (e) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);

(x) “bus body building” shall include building of body on chassis of any vehicle falling under chapter 87 in the First Schedule
to the Customs Tariff Act, 1975.

(xi) “carpet area” shall have the same meaning assigned to it in in clause (k) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);

(xii) “clinical establishment” means, –

a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases;

(xiii) “commencement certificate” means the commencement certificate or the building permit or the construction permit, by whatever name called issued by the competent authority to allow or permit the promoter to begin development works on an immovable property, as per the sanctioned plan;

(xiv) “Commercial apartment” shall mean an apartment other than a residential apartment;

(xv) “competent authority” as mentioned in definition of “commencement certificate” and “residential apartment”, means the local authority or any authority created or established under any law for the time being in force by the Central Government or State Government or Union Territory Government, which exercises authority over land under its jurisdiction, and has powers to give permission for development of such immovable property;

(xvi) “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;

(xvii) “development works” means the external development works and internal development works on immovable property;

(xviii) “external development works” includes roads and road systems landscaping, water supply, sewage and drainage systems, electricity supply transformer, sub-station, solid waste management and disposal or any other work which may have to be executed in the periphery of, or outside, a project for its benefit, as may be provided under the local laws;

(xix) “floor space index (FSI)” shall mean the ratio of a building’s total floor area (gross floor area) to the size of the piece of land upon which it is built;

(xx) “goods carriage” has the same meaning as assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(xxi) “goods transport agency” means, –

any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called;

(xxii) “Government Entity” means an authority or a board or any other body including a society, trust, corporation,-

(i) set up by an Act of Parliament or State Legislature; or

(ii) established by any Government,

with 90per cent. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority;

(xxiii) “Governmental Authority” means an authority or a board or any other body, –

(i) set up by an Act of Parliament or a State Legislature; or

(ii) established by any Government,

with 90per cent. or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution;

(xxiv) “Handicraft goods” shall have the same meaning as assigned to it in the notification No. 32/2017 -Central Tax, dated the 15th September, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1158 (E), dated the 15th September, 2017 as amended from time to time.

(xxv) “health care services” means, –

any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma;

(xxvi) “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.

(xxvii) “information technology software” means any representation of instructions, data, sound or image, including source code and object code, recorded in a machine readable form, and capable of being manipulated or providing interactivity to a user, by means of a computer or an automatic data processing machine or any other device or equipment.

(xxviii) “internal development works” means roads, footpaths, water supply, sewers, drains,
parks, tree planting, street lighting, provision for community buildings and for treatment and disposal of sewage and sullage water, solid waste management and disposal, water conservation, energy management, fire protection and fire safety requirements, social infrastructure such as educational health and other public amenities or any other work in a project for its benefit, as per sanctioned plans;

(xxix) “ongoing project” shall mean a project which meets all the following conditions, namely-

(a) commencement certificate in respect of the project, where required to be issued by the competent authority, has been issued on or before 31stMarch, 2019, and it is certified by any of the following that construction of the project has started on or before 31stMarch, 2019:-
(i) an architect registered with the Council of Architecture constituted under the Architects Act, 1972 (20 of 1972); or

(ii) a chartered engineer registered with the Institution of Engineers (India); or

(iii) a licensed surveyor of the respective local body of the city or town or village or development or planning authority.

(b) where commencement certificate in respect of the project, is not required to be issued by the competent authority, it is certified by any of the authorities specified in sub- clause (a) above that construction of the project has started on or before the 31stMarch, 2019;

(c) completion certificate has not been issued or first occupation of the project has not taken place on or before the 31stMarch, 2019;

(d) apartments being constructed under the project have been, partly or wholly, booked on or before the 31st March, 2019;

Explanation.- For the purpose of sub- clause (a) and (b) above , construction of a project shall be considered to have started on or before the 31stMarch, 2019, if the earthwork for site preparation for the project has been completed and excavation for foundation has started on or before the 31stMarch, 2019;

(xxx) “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;

(xxxi) “print media” means, —

(i) ‘book’ as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867), but does not include business directories, yellow pages and trade catalogues which are primarily meant for commercial purposes;

(ii) ‘newspaper’ as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867);

(xxxii) “project” shall mean a Real Estate Project or a Residential Real Estate Project;

(xxxiii) “project which commences on or after 1stApril, 2019” shall mean a project other than an ongoing project;

(xxxiv) “promoter” shall have the same meaning as assigned to it in in clause (zk) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);

(xxxv) “Real Estate Project (REP)” shall have the same meaning as assigned to it in in clause (zn) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);

(xxxvi) “Real Estate Regulatory Authority” shall mean the Authority established under sub- section (1) of section 20 (1) of the Real Estate (Regulation and Development) Act, 2016 (No. 16 of 2016) by the Central Government or State Government;

(xxxvii) “Residential apartment” shall mean an apartment intended for residential use as declared to the Real Estate Regulatory Authority or to competent authority;

(xxxviii) “Residential Real Estate Project (RREP)” shall mean a REP in which the carpet area of the commercial apartments is not more than 15 per cent. of the total carpet area of all the apartments in the REP;

(xxxix) “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.

(xl) “specified organisation” shall mean, –

(a) Kumaon Mandal Vikas Nigam Limited, a Government of Uttarakhand Undertaking; or

(b) ‘Committee’ or ‘State Committee’ as defined in section 2 of the Haj Committee Act, 2002 (35 of 2002).

(xli) “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.

5. Conditions

Table

Condition Number Condition
1 Provided that the central tax at the rate specified in column (5) shall be paid in cash, that is, by debiting the electronic cash ledger only;

Provided also that credit of input tax charged on goods and services used in supplying the service has not been taken except to the extent as prescribed in Annexure I in the case of REP other than RREP and in Annexure II in the case of RREP;

Provided also that the registered person shall pay, by debit in the electronic credit ledger or electronic cash ledger, an amount equivalent to the input tax credit attributable to construction in a project, time of supply of which is on or after 1st April, 2019, which shall be calculated in the manner as prescribed in the Annexure I in the case of REP other than RREP and in Annexure II in the case of RREP;

Provided also that where a registered person (landowner- promoter) who transfers development right or FSI (including additional FSI) to a promoter (developer- promoter) against consideration, wholly or partly, in the form of construction of apartments, –

(i) the developer- promoter shall pay tax on supply of construction of apartments to the landowner- promoter, and

(ii) such landowner – promoter shall be eligible for credit of taxes charged from him by the developer promoter towards the supply of construction of apartments by developer-promoter to him, provided the landowner- promoter further supplies such apartments to his buyers before issuance of completion certificate or first occupation, whichever is earlier, and pays tax on the same which is not less than the amount of tax charged from him on construction of such apartments by the developer- promoter.

Explanation.-

(i) “developer- promoter” is a promoter who constructs or converts a building into apartments or develops a plot for sale,

(ii) “landowner-promoter” is a promoter who transfers the land or development rights or FSI to a developer- promoter for construction of apartments and receives constructed apartments against such transferred rights and sells such apartments to his buyers independently.

(iii) the landowner-promoter shall be eligible to utilise the credit of tax charged to him by the developer-promoter for payment of tax on apartments supplied by the landowner-promoter in such project.

Provided also that eighty percent of value of input and input services, [other than services by way of grant of development rights, long term lease of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI (including additional FSI), electricity, high speed diesel, motor spirit, natural gas], used in supplying the service shall be received from registered supplier only;

Provided also that inputs and input services on which tax is paid on reverse charge basis shall be deemed to have been purchased from registered person;

Provided also that where value of input and input services received from registered suppliers during the financial year (or part of the financial year till the date of issuance of completion certificate or first occupation of the project, whichever is earlier) falls short of the said threshold of 80 per cent., central tax shall be paid by the promoter on value of input and input services comprising such shortfall at the rate of nine percent on reverse charge basis and all the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017) shall apply to him as if he is the person liable for paying the tax in relation to the supply of such goods or services or both;

Provided also that notwithstanding anything contained herein above, where cement is received from an unregistered person, the promoter shall pay tax on supply of such cement at the applicable rates on reverse charge basis and all the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017), shall apply to him as if he is the person liable for paying the tax in relation to such supply of cement;

(Please refer to the illustrations in annexure III)

Explanation.-

1. The promoter shall maintain project wise account of inward supplies from registered and unregistered supplier and calculate tax payments on the shortfall at the end of the financial year and shall submit the same in the prescribed form electronically on the common portal by end of the quarter following the financial year. The tax liability on the shortfall of inward supplies from unregistered person so determined shall be added to his output tax liability in the month not later than the month of June following the end of the financial year.

2. Notwithstanding anything contained in Explanation 1 above, tax on cement received from unregistered person shall be paid in the month in which cement is received.

3. Input Tax Credit not availed shall be reported every month by reporting the same as ineligible credit in GSTR-3B [Row No. 4 (D)(2)].

2 Provided that in case of ongoing project, the registered person shall exercise one time option in the Form at Annexure IV to pay central tax on construction of apartments in a project at the rates as specified at 995414 and 995419, as the case may be, by the 20th of May, 2019;

Provided also that where the option is not exercised in Form at Annexure IV by the 20th of May, 2019, option to pay tax at the rates as applicable specified at 995411, 995412 and 995413 above, as the case may be, shall be deemed to have been exercised;

Provided also that invoices for supply of the service can be issued during the period from 1st April 2019 to [20th] May 2019 before exercising the option, but such invoices shall be in accordance with the option to be exercised.

3 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation (iv)]
4 Provided that the supply of services involved predominantly earth work (that is, constituting more than 75per cent. of the value of the works contract) provided to the Central Government, State Government, Union territory or a local authority, or, by a sub-contractor to the main contractor providing such services to the Central Government, State Government, Union territory or a local authority
5 Provided that the value of supply of a unit of accommodation is less than or equal to seven thousand five hundred rupees per unit per day or two lakh twenty five thousand per unit per month or equivalent as applicable
6 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iii)]
7 Provided that credit of input tax charged in respect of goods used in supplying the service is not utilised for paying central tax or integrated tax on the supply of the service
8 Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of transporting passengers in a motor vehicle or renting of a motor vehicle), has not been taken. [Please refer to Explanation no. (iii)]
9 Provided that credit of input tax charged on goods used in supplying the service has not been taken [Please refer to Explanation no. (iii)]
10 Provided that transport of passengers, with or without accompanied baggage, by air, is undertaken by non-scheduled air transport service or charter operations, engaged by specified religious organizations in respect of religious pilgrimage facilitated by the Government of India, under bilateral arrangements.

Provided further that credit of input tax charged on goods used in supplying the service has not been taken [Please refer to Explanation no. (iii)]

11 1. In respect of supplies on which GTA pays tax at the rate of 2.5%, GTA shall not take credit of input tax charged on goods and services used in supplying the service.[Please refer to Explanation no. (iii)]

2.The option by GTA to itself pay GST on the services supplied by it during a Financial Year shall be exercised by making a declaration in Annexure V on or before the 15th March of the preceding Financial Year.

12 Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken [Please refer to Explanation no. (iii)]
13 Provided that the services are supplied through E-commerce Operators and the person supplying such service through ECO is not liable for registration under sub-section (1) of section 22 of the CGST Act,2017

Provided that credit of input tax charged on goods and services has not been taken. [Please refer to Explanation no. (iii)]

14 Provided that credit of input tax charged on goods and services used in supplying the service [ other than the input tax credit of input service in the same line of business (i.e., tour operator service procured from another tour operator)] 81 has not been taken [Please refer to Explanation no. (iii)] 2. The bill issued for supply of this service indicates that it is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for such a tour including the charges of accommodation and transportation required for such a tour.
15 Provided that the support services are in the nature of housekeeping services such as services of plumbing, carpentering, electrician etc. supplied through ECO and the person supplying such service through ECO is not liable for registration under sub-section (1) of section 22 of the CGST Act,2017

Provided that credit of input tax charged on goods and services has not been taken. [Please refer to Explanation no. (iii)]

6. This notification shall come into force with effect from <>

[F.No. <>]

<>

Annexure I

[ Real estate project (REP) other than Residential Real estate project (RREP)

Input tax credit attributable to construction of residential portion in a real estate project (REP) other than residential real estate project (RREP), which has time of supply on or after 1st April, 2019, shall be calculated project wise for all projects which commence on or after 1st April, 2019 or ongoing projects in respect of which the promoter has not exercised option to pay central tax on construction of apartments at the rates as specified against serial number 8 or serial number 9 of the schedule above, as the case may be, in the prescribed manner, before the due date for furnishing of the return for the month of September following the end of financial year 2018-19, in the following manner:

1. Where % completion as on 31st March, 2019 is not zero or where there is inventory in stock

(a) Input tax credit on inputs and input services attributable to construction of residential portion in a REP, which has time of supply on or after 1st April, 2019, may be denoted as Tx. Tx shall be calculated as under:

Tx=T-Te

Where,

(i) T is the total ITC availed (utilized or not) on inputs and input services used in construction of the REP from 1st July, 2017 to 31st March, 2019 including transitional credit taken on 1st July, 2017;

(ii) Te is the eligible ITC attributable to (a) construction of commercial portion and (b) construction of residential portion, in the REP which has time of supply on or before 31st March, 2019;

(b) Te shall be calculated as under:

Te=Tc+Tr

Where, –

Tc is the ITC attributable to construction of commercial portion in the REP, calculated as under:

Tc =T * (carpet area of commercial apartments in the REP/ total carpet area of commercial and residential apartments in the REP) and

Tr is the ITC attributable to construction of residential portion in the REP which has time of supply on or before 31st March, 2019 and which shall be calculated as under,

Tr= T* F1 * F2 * F3* F4

Where, –

F1= Carpet area of residential apartments in REP
_______________________________________________
Total carpet area of commercial and residential apartments in the REP

Total carpet area of residential apartment booked on or before 31st March, 2019
F2 = __________________________________________________
Total carpet area of the residential apartment in REP

Such Value of supply of construction of residential apartments booked on or before 31st March, 2019
which has time of supply on or before 31st March, 2019
F3 = _________________________________________________________________
Total value of supply of construction of residential apartments booked on or before 31st March, 2019

(F3 is to account for percentage invoicing of booked residential apartments)

F4= _________¹___________
% Completion of construction as on 31st March, 2019

Illustration: where one- fifth (twenty percent) of the construction has been completed, F4 shall be 100 ÷ 20 = 5.

Explanation: “% Completion of construction as on 31st March, 2019” shall be the same as declared to the Real Estate Regulatory Authority in terms of section 4 and section 11 of Real Estate (Regulation and Development) Act, 2016 (16 of 2016) and where the same is not required to be declared to the Real Estate Regulatory Authority, it shall be got determined and certified by an architect registered with the Council of Architecture constituted under the Architects Act, 1972 (20 of 1972) or a chartered engineer registered with the Institution of Engineers (India).

(c) A registered person shall have the option to calculate ‘Te’ in the manner prescribed below instead of the manner prescribed in (b) above,-

Te shall be calculated as under:

Te = Tc + T1 + Tr

Where, –

Tc is the ITC attributable to construction of commercial portion in the REP, calculated as under:

Tc =T3 * (carpet area of commercial apartments in the REP/ total carpet area of commercial and residential apartments in the REP);

Wherein

T3 = T- (T1 + T2)

T1 = ITC attributable exclusively to construction of commercial portion in the REP

T2 = ITC attributable exclusively to construction of residential portion in the REP and

Tr is the ITC attributable to construction of residential portion in the REP which has time of supply on or before 31.03.2019 and which shall be calculated as under,

Tr = (T3 + T2)* F1 * F2 * F3* F4

or

Tr = (T- T1)* F1 * F2 * F3* F4

(d) The amounts ‘Tx’ and ‘Te’ shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax.

(e) Where, Tx is positive, i.e. Te<T, the registered person shall pay, by debit in the electronic credit ledger or electronic cash ledger, an amount equal to the difference between T and Te. Such amount shall form part of the output tax liability of the registered person and the amount shall be furnished in FORM GST DRC- 03.

Explanation: The registered person may file an application in FORM GST DRC- 20, seeking extension of time for the payment of taxes or any amount due or for allowing payment of such taxes or amount in installments in accordance with the provisions of section 80. The commissioner may issue an order in FORM GST DRC- 21 allowing the taxable person further time to make payment and/or to pay the amount in such monthly installments, not exceeding twenty-four, as he may deem fit.

(f) Where Tx is negative, i.e. Te>T, the registered person shall be eligible to take ITC on goods and services received on or after 1st April, 2019 for construction of residential portion in the REP, for which he shall not otherwise be eligible, to the extent of difference between Te and T.

(g) The registered person may calculate Tc and utilize credit to the extent of Tc for payment of tax on commercial apartments, till the complete accounting of Tx is carried out and submitted.

(h) Where percentage completion is zero but ITC has been availed on goods and services received for the project on or prior to 31st March, 2019, input tax credit attributable to construction of residential portion which has time of supply on or after 1st April, 2019, shall be calculated and the amount equal to Tx shall be paid or taken credit of, as the case may be, as prescribed above, with the modification that percentage completion for calculation of F4 shall be taken as the percentage completion which, as certified by an architect registered with the Council of Architecture constituted under the Architects Act, 1972 (20 of 1972) or a chartered engineer registered with the Institution of Engineers (India), can be achieved with the input services received and inputs in stock as on 31st March, 2019.

2. Where % completion as on 31st March, 2019 is zero but invoicing has been done having time of supply before 31st March, 2019, and no input services or inputs have been received as on 31st March, 2019, “Te” shall be calculated as follows: –

(a) Input tax credit on inputs and input services attributable to construction of residential portion in a REP, which has time of supply on or before 31st March, 2019 may be denoted as Te which shall be calculated as under,

Te = Tc + Tr
Where, –

Tc is the ITC attributable to construction of commercial portion in the REP, calculated as under:

Tc =Tn* (carpet area of commercial apartments in the REP/ total carpet area of commercial and residential apartments in the REP) and

Tr is the ITC attributable to construction of residential portion in the REP which has time of supply on or before 31st March, 2019 and which shall be calculated as under,

Tr = Tn* F1 * F2 * F3
Where, –

Tn= Tax paid on such inputs and input services on which ITC is available under the CGST Act, received in 2019-20 for construction of REP

F1, F2 and F3 shall be the same as in para 1 above

(b) The registered person shall be eligible to take ITC on goods and services received on or after 1st April, 2019 for construction of residential portion in the REP, for which he shall not otherwise be eligible, to the extent of the amount of Te.

(c) The amount ‘Te’ shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax.

3. Notwithstanding anything contained in paragraph 1 or paragraph 2 above, Te shall be determined in the following situations as under:

(i) where percentage invoicing is more than the percentage completion and the difference between percentage invoicing (per cent. points) and the percentage completion (per cent. points) of construction is more than 25 per cent. points; the value of percentage invoicing shall be deemed to be percentage completion plus 25 percent. points;

(ii) where the value of invoices issued on or prior to 31st March, 2019 exceeds the consideration actually received on or prior to 31st March, 2019 by more than 25 per cent. of consideration actually received; the value of such invoices for the purpose of determination of percentage invoicing shall be deemed to be actual consideration received plus 25 percent. of the actual consideration received; and

(iii) where, the value of procurement of inputs and input services prior to 1st April, 2019 exceeds the value of actual consumption of the inputs and input services used in the percentage of construction completed as on 31st March, 2019 by more than 25 percent. of value of actual consumption of inputs and input services, the jurisdictional commissioner or any other officer authorized in this regard may fix the Te based on actual per unit consumption of inputs and input services based on the documents duly certified by a chartered accountant or cost accountant submitted by the promoter in this regard, applying the accepted principles of accounting.

Illustration 1:

Sl. No.

Details of a REP (Res + Com)

A

B

C

D

1 No. of apartments in the project 100 units
2 No. of residential apartments in the project 75 units
3 Carpet area of the residential apartment 70 sqm
4 Total carpet area of the residential apartments C2 * C3 5250 sqm
5 value of each residential apartment 0.60 crore
6 Total value of the residential apartments C2 * C5 45.00 crore
7 No. of commercial apartments in the project 25 units
8 Carpet area of the commercial apartment 30 sqm
9 Total carpet area of the commercial apartments C7 * C8 750 sqm
10 Total carpet area of the project (Resi + Com) C4 + C9 6000 sqm
11 Percentage completion as on 31.03.2019 [as declared to RERA or determined by chartered engineer] 20%
12 No of residential apartments booked before transition 40 units
13 Total carpet area of the residential apartments booked before transition C12 * C3 2800 sqm
14 Value of booked residential apartments C5 * C12 24 crore
15 Percentage invoicing of booked residential apartments on or before 20%
16 Total value of supply of residential apartments having t.o.s. prior to transition C14 * C15 4.8 crore
17 ITC to be reversed on transition, Tx= T- Te
18 Eligible ITC (Te)= Tc + Tr
19 T (*see notes below) 1 crore
20 Tc= T x (carpet area of commercial apartments in the REP/ total carpet area of commercial and residential apartments in the REP) C19 * (C9/ C10) 0.125 crore
21 Tr= T x F1 x F2 x F3 x F4
22 F1 C4 / C10 0.875
23 F2 C13 / C4 0.533
24 F3 C16 / C14 0.200
25 F4 1/ C11 5
26 Tr= T x F1 x F2 x F3 x F4 C19 * C22 * C23 * C24 * C25 0.467 crore
27 Eligible ITC (Te)=Tc + Tr C26 + C20 0.592 crore
28 ITC to be reversed on transition, Tx= T- Te C19 – C27 0.408 crore
* Note:-

1. The value of T at C19 has been estimated for illustration based on weighted average tax on inputs.

2. In actual practice, the registered person shall take ‘aggregate of ITC taken as declared in GSTR-3B of tax periods from 1.7.2017 or commencement of project which is later and transitional credit taken under section 140 of CGST Act’ as value of T.

Illustration 2:

Sl. No.

Details of a REP (Res + Com)

A

B

C

D

1 No. of apartments in the project 100 units
2 No. of residential apartments in the project 75 units
3 Carpet area of the residential apartment 70 sqm
4 Total carpet area of the residential apartments C2 * C3 5250 sqm
5 value of each residential apartment 0.60 crore
6 Total value of the residential apartments C2 * C5 45.00 crore
7 No. of commercial apartments in the project 25 units
8 Carpet area of the commercial apartment 30 sqm
9 Total carpet area of the commercial apartments C7 * C8 750 sqm
10 Total carpet area of the project (Resi + Com) C4 + C9 6000 sqm
11 Percentage completion as on 31.03.2019 [as declared to RERA or determined by chertered engineer] 20%
12 No of residential apartments booked before transition 40 units
13 Total carpet area of the residential apartments booked before transition C12 * C3 2800 sqm
14 Value of booked residential apartments C5 * C12 24 crore
15 Percentage invoicing of booked residential apartments on or before 60%
16 Total value of supply of residential apartments having t.o.s. prior to transition C14 * C15 14.4 crore
17 ITC to be reversed on transition, Tx= T- Te
18 Eligible ITC (Te)= Tc + Tr
19 T (*see notes below) 1 crore
20 Tc= T x (carpet area of commercial apartments in the REP/ total carpet area of commercial and residential apartments in the REP) C19 * (C9/ C10) 0.125 crore
21 Tr= T x F1 x F2 x F3 x F4
22 F1 C4 / C10 0.875
23 F2 C13 / C4 0.533
24 F3 C16 / C14 0.200
25 F4 1/ C11 5
26 Tr= T x F1 x F2 x F3 x F4 C19 * C22 * C23 * C24 * C25 1.400 crore
27 Eligible ITC (Te)=Tc + Tr C26 + C20 1.525 crore
28 ITC to be reversed on transition, Tx= T- Te C19 – C27 -0.525 Crore
29 Tx after application of cap on % invoicing vis-a-vis Pc
30 % completion 20%
31 % invoicing 60%
32 % invoicing after application of cap(Pc + 25%) C11+25% 45%
33 Total value of supply of residential apartments having t.o.s. prior to transition C14*C32 10.80 crore
34 F3 after application of cap C33/C14 0.45
35 Tr= T x F1 x F2 x F3 x F4 (after application of cap) C19 * C22 * C23 * C34 * C25 1.05 crore
36 Eligible ITC (Te)=Tc + Tr (after application of cap) C20 + C35 1.18 crore
37 ITC to be reversed / taken on transition, Tx= T- Te (after application of cap) C19 – C36 -0.18 crore
38 Tx after application of cap on % invoicing vis-a-vis Pc and payment realisation
39 % invoicing after application of cap(Pc + 25%) 45%
40 Total value of supply of residential apartments having t.o.s. prior to transition C33 10.80 crore
41 Consideration received 8.00 crore
42 Total value of supply of residential apartments having t.o.s. prior to transition after application of cap vis-a-vis consideration received 8 cr + 25% of 8 Cr 10.00 crore
43 F3 after application of both the caps C42 / C14 0.42
44 Tr= T x F1 x F2 x F3 x F4 (after application of both the caps) C19 * C22 * C23 * C43 * C25 0.97
45 Eligible ITC (Te)=Tc + Tr (after application of both the caps) C20 + C44 1.10
46 ITC to be reversed / taken on transition, Tx= T- Te (after application of both the caps) C19 – C45 -0.10 crore
* Note:-

1. The value of T at C19 has been estimated for illustration based on weighted average tax on inputs.

2. In actual practice, the registered person shall take ‘aggregate of ITC taken as declared in GSTR-3B of tax periods from 1.7.2017 or commencement of project which is later and transitional credit taken under section 140 of CGST Act’ as value of T.

Annexure II

Residential Real estate project (RREP)

Input tax credit attributable to construction of residential and commercial portion in a Residential Real estate project (RREP), which has time of supply on or after 1st April, 2019, shall be calculated project wise for all projects which commence on or after 1st April, 2019 or ongoing projects in respect of which the promoter has not exercised option to pay central tax on construction of apartments at the rates as specified for item (ie) or (if) against serial number 3, as the case may be, in the prescribed manner, before the due date for furnishing of the return for the month of September following the end of financial year 2018-19, in the following manner:

1. Where % completion as on 31st March, 2019 is not zero or where there is inventory in stock

(a) Input tax credit on inputs and input services attributable to construction of residential and commercial portion in an RREP, which has time of supply on or after 1st April, 2019, may be denoted as Tx. Tx shall be calculated as under:

Tx=T-Te

Where,

(i) T is the total ITC availed (utilized or not) on inputs and input services used in construction of the RREP from 1st July, 2017 to 31st March, 2019 including transitional credit taken on 1st July, 2017;

(ii) Te is the eligible ITC attributable to construction of commercial portion and construction of residential portion, in the RREP which has time of supply on or before 31st March, 2019;

(b) Te shall be calculated as under: Te= T* F1 * F2 * F3* F4 Where, –

F1= Carpet area of residential and commercial apartments in the RREP
________________________________________________
Total carpet are a of apartments in the RREP

(In case of a Residential Real Estate Project, value of “F1” shall be 1.)

Total carpet area of residential and commercial apartment booked on or before 31st March, 2019
F2=_________________________________________________________
Total carpet area of the residential and commercial apartment in the RREP

Such value of supply of construction of residential and commercial apartments booked on or before 31st March, 2019 which has time of supply on or before 31st March, 2019
F3= _____________________________________________________________________
Total value of supply of construction of residential and commercial apartments booked on or before 31st March, 2019

(F3 is to account for percentage invoicing of booked residential apartments)

F4= 1
___________________________________________
% Completion of construction as on 31st March, 2019

Illustration: where one- fifth (twenty percent) of the construction has been completed, F4 shall be 100 ÷ 20 = 5.

Explanation: “% Completion of construction as on 31st March, 2019” shall be the same as declared to the Real Estate Regulatory Authority in terms of section 4 and section 11 of Real Estate (Regulation and Development) Act, 2016 and where the same is not required to be declared to the Real Estate Regulatory Authority, it shall be got determined and certified by an architect registered with the Council of Architecture constituted under the Architects Act, 1972 (20 of 1972) or a chartered engineer registered with the Institution of Engineers (India).

(c) The amounts ‘Tx’ and ‘Te’ shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax.

(d) Where, Tx is positive, i.e. Te < T, the registered person shall pay, by debit in the electronic credit ledger or electronic cash ledger, an amount equal to the difference between T and Te. Such amount shall form part of the output tax liability of the registered person and the amount shall be furnished in FORM GST DRC- 03.

Explanation: The registered person may file an application in FORM GST DRC- 20, seeking extension of time for the payment of taxes or any amount due or for allowing payment of such taxes or amount in installments in accordance with the provisions of section 80. The commissioner may issue an order in FORM GST DRC- 21 allowing the taxable person further time to make payment and/or to pay the amount in such monthly installments, not exceeding twenty-four, as he may deem fit.

(e) Where, Tx is negative, i.e. Te>T, the registered person shall be eligible to take ITC on goods and services received on or after 1st April, 2019 for construction of the RREP, for which he shall not otherwise be eligible, to the extent of difference between Te and T.

(f) Where percentage completion is zero but ITC has been availed on goods and services received for the project on or prior to 31st March, 2019, input tax credit attributable to construction of residential and commercial portion which has time of supply on or after 1st April, 2019, shall be calculated and the amount equal to Tx shall be paid or taken credit of, as the case may be, as prescribed above, with the modification that percentage completion for calculation of F4 shall be taken as the percentage completion which, as certified by an architect registered with the Council of Architecture constituted under the Architects Act, 1972 (20 of 1972) or a chartered engineer registered with the Institution of Engineers (India), can be achieved with the input services received and inputs in stock as on 31st March, 2019.

2. Where % completion as on 31st March, 2019 is zero but invoicing has been done having time of supply before 31st March, 2019, and no input services or inputs have been received as on 31st March, 2019, “Te” shall be calculated as follows: –

(a) Input tax credit on inputs and input services attributable to construction of residential and commercial portion in an RREP, which has time of supply on or before 31st March, 2019 may be denoted as Te which shall be calculated as under,

Te = Tn* F1 * F2 * F3

Where, –

Tn= Tax paid on such inputs and input services on which ITC is available under the CGST Act, received in 2019-20 for construction of residential and commercial apartments in the RREP.

F1, F2 and F3 shall be the same as in para 1 above

(b) The registered person shall be eligible to take ITC on goods and services received on or after 1st April, 2019 for construction of residential or commercial portion in the RREP, for which he shall not otherwise be eligible, to the extent of the amount of Te.

(c) The amount ‘Te’ shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax.

3. Notwithstanding anything contained in paragraph 1 or paragraph 2 above, Te shall be determined in the following situations as under:

(i) where percentage invoicing is more than the percentage completion and the difference between percentage invoicing (per cent. points) and the percentage completion (per cent. points) of construction is more than 25 per cent. points; the value of percentage invoicing shall be deemed to be percentage completion plus 25 percent. points;

(ii) where the value of invoices issued on or prior to 31st March, 2019 exceeds the consideration actually received on or prior to 31st March, 2019 by more than 25 per cent. of consideration actually received; the value of such invoices for the purpose of determination of percentage invoicing shall be deemed to be actual consideration received plus 25 per cent. of the actual consideration received; and

(iii) where, the value of procurement of inputs and input services prior to 1st April, 2019 exceeds the value of actual consumption of the inputs and input services used in the percentage of construction completed as on 31st March, 2019 by more than 25 per cent. of value of actual consumption of inputs and input services, the jurisdictional commissioner or any other officer authorized in this regard may fix the Te based on actual per unit consumption of inputs and input services based on the documents duly certified by a chartered accountant or cost accountant submitted by the promoter in this regard, applying the accepted principles of accounting.

Illustration 1:

Sl No Details of a residential real estate project (RREP)
A B C D
1 No. of apartments in the project 100 units
2 No. of residential apartments in the project 100 units
3 Carpet area of the residential apartment 70 sqm
4 Total carpet area of the residential apartments C2 * C3 7000 sqm
5 value of each residential apartment 0.60 crore
6 Percentage completion as on 31.03.2019 [as declared to RERA or determined by chertered engineer] 20%
7 No of apartments booked before transition 80 units
8 Total carpet area of the residential apartment booked before transition C3 * C7 5600 sqm
9 Value of booked residential apartments C5 * C7 48 crore
10 Percentage invoicing of booked residential apartments on or before 31.03.2019 20%
11 Total value of supply of residential apartments having t.o.s. prior to transition C9 * C10 9.6 crore
12 ITC to be reversed on transition, Tx= T- Te
13 Eligible ITC (Te)=T x F1 x F2 x F3 x F4)
14 T (*see notes below) 1 crore
15 F1 1
16 F2 C8 / C4 0.8
17 F3 C11 / C9 0.2
18 F4 1/ C6 5
19 Eligible ITC (Te)=T x F1 x F2 x F3 x F4) C14 * C15 * C16 * C17 * C18 0.8 crore
20 ITC to be reversed on transition, Tx= T- Te C14 – C19 0.2 crore
*Note:-

1.The value of T at C14 has been estimated for illustration based on weighted average tax on inputs.

2. In actual practice, the registered person shall take ‘aggregate of ITC taken as declared in GSTR-3B of tax periods from 1.7.2017 or commencement of project which is later and transitional credit taken under section 140 of CGST Act’ as value of T.

Illustration 2:

Sl No Details of a residential real estate project (RREP)
A B C D
1 No. of apartments in the project 100 units
2 No. of residential apartments in the project 100 units
3 Carpet area of the residential apartment 70 sqm
4 Total carpet area of the residential apartments C2 * C3 7000 sqm
5 value of each residential apartment 0.60 crore
6 Percentage completion as on 31.03.2019 [as declared to RERA or determined by chertered engineer] 20%
7 No of apartments booked before transition 80 units
8 Total carpet area of the residential apartment booked before transition C3 * C7 5600 sqm
9 Value of booked residential apartments C5 * C7 48 crore
10 Percentage invoicing of booked residential apartments on or before 31.03.2019 60%
11 Total value of supply of residential apartments having t.o.s. prior to transition C9 * C10 28.8 crore
12 ITC to be reversed on transition, Tx= T- Te
13 Eligible ITC (Te)=T x F1 x F2 x F3 x F4)
14 T (*see notes below) 1 crore
15 F1 1
16 F2 C8 / C4 0.8
17 F3 C11 / C9 0.6
18 F4 1/ C6 5
19 Eligible ITC (Te)=T x F1 x F2 x F3 x F4) C14 * C15 * C16 * C17 * C18 2.4 crore
20 ITC to be reversed on transition, Tx= T- Te C14 – C19 -1.4 crore
21 Tx after application of cap on % invoicing vis-a-vis Pc
22 % completion 20%
23 % invoicing 60%
24 % invoicing after application of cap(Pc + 25%) C6 + 25 % 45%
25 Total value of supply of residential apartments having t.o.s. prior to transition C9 * C24 21.60 crore
26 F3 after application of cap C25/C9 0.45
27 Te= T x F1 x F2 x F3 x F4 (after application of cap) C14 * C15 * C16 * C26 * C18 1.80 crore
28 ITC to be reversed / taken on transition, Tx= T- Te (after application of cap) C14 – C27 -0.80 crore
29 Tx after application of cap on % invoicing vis-a-vis Pc and payment realisation
30 % invoicing after application of cap(Pc + 25%) 45%
31 Total value of supply of residential apartments having t.o.s. prior to transition C25 21.60 crore
32 consideration received 16.00 crore
33 Total value of supply of residential apartments having t.o.s. prior to transition after application of cap vis-a-vis consideration received 16 cr + 25% of 16 Cr 20.00 crore
34 F3 after application of both the caps C33/C9 0.42
35 Te= T x F1 x F2 x F3 x F4 (after application of both the caps) C14 * C15 * C34 * C26 * C18 1.67
36 ITC to be reversed / taken on transition, Tx= T- Te (after application of both the caps) C14 – C35 -0.67 crore
*Note:-

1. The value of T at C14 has been estimated for illustration based on weighted average tax on inputs.

2. In actual practice, the registered person shall take ‘aggregate of ITC taken as declared in GSTR-3B of tax periods from 1.7.2017 or commencement of project which is later and transitional credit taken under section 140 of CGST Act’ as value of T.

Annexure III

Illustration 1:

A promoter has procured following goods and services [other than capital goods and services by way of grant of development rights, long term lease of land or FSI] for construction of a residential real estate project during a financial year.

Sl. No. Name of input goods and services Percentage of input goods and services received during the financial year  Whether inputs received from  registered supplier? (Y/ N)
1 Sand 10 Y
2 Cement 15 N
3 Steel 20 Y
4 Bricks 15 Y
5 Flooring tiles 10 Y
6 Paints 5 Y
7 Architect/ designing/ CAD drawing etc. 10 Y
8 Aluminium windows, Ply, commercial wood 15 Y

In this example, the promoter has procured 80 per cent. of goods and services [other than services by way of grant of development rights, long term lease of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI (including additional FSI), electricity, high speed diesel, motor spirit, natural gas], from a GST registered person. However, he has procured cement from an unregistered supplier. Hence at the end of financial year, the promoter has to pay GST on cement at the applicable rates on reverse charge basis.

Illustration 2:

A promoter has procured following goods and services [other than services by way of grant of development rights, long term lease of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI (including additional FSI), electricity, high speed diesel, motor spirit, natural gas], for construction of a residential real estate project during a financial year.

Sl. No. Name of input goods  and services Percentage of input goods and services received    during the financial year  Whether inputs received from registered supplier? (Y/ N)
1 Sand 10 Y
2 Cement 15 Y
3 Steel 20 Y
4 Bricks 15 Y
5 Flooring tiles 10 Y
6 Paints 5 N
7 Architect/ designing/ CAD drawing etc. 10 Y
8 Aluminum windows, Ply, commercial wood 15 N

In this example, the promoter has procured 80 per cent. of goods and services including cement from a GST registered person. However, he has procured paints, aluminium windows, ply and commercial wood etc. from an unregistered supplier. Hence at the end of financial year, the promoter is not required to pay GST on inputs on reverse charge basis.

Illustration 3:

A promoter has procured following goods and services [other than services by way of grant of development rights, long term lease of land (against upfront payment in the form of premium, salami, development charges etc.) or FSI (including additional FSI), electricity, high speed diesel, motor spirit, natural gas], for construction of a residential real estate project during a financial year.

Sl. No. Name of input goods and services Percentage of input goods and services received during the
financial year
Whether inputs  procured from registered
supplier?
(Y/ N)
1 Sand 10 N
2 Cement 15 N
3 Steel 15 Y
4 Bricks 10 Y
5 Flooring tiles 10 Y
6 Paints 5 Y
7 Architect/ designing/ CAD drawing etc. 10 Y
8 Aluminum windows 15 N
9 Ply, commercial wood 10 N

In this example, the promoter has procured 50 per cent. of goods and services from a GST registered person. However, he has procured sand, cement and aluminum windows, ply and commercial wood etc. from an unregistered supplier. Thus, value of goods and services procured from registered suppliers during a financial year falls short of threshold limit of 80 per cent. To fulfill his tax liability on the shortfall of 30 per cent. from mandatory purchase, the promoter has to pay GST on cement at the applicable rate on reverse charge basis. After payment of GST on cement, on the remaining shortfall of 15 per cent., the promoter shall pay tax @ 18 (9 + 9) per cent. under RCM.

Annexure IV

FORM

(Form for exercising one time option to pay tax on construction of apartments in a project by the promoters at the rate as specified for item (ie) or (if), against serial number 3 in the Table in this notification, as the case may be, by the [20th]i of May, 2019)

Reference No. ________

Date_________

To___________

_____________

(To be addressed to the jurisdictional Commissioner)

1. GSTIN:
2. RERA registration Number of the Project:
3. Name of the project, if any:
4. The location details of the project, with clear demarcation of land dedicated for the project along with its boundaries including the longitude and latitude of the end points of the project:
5. The number, type and the carpet area of apartments for booking or sale in the project:
6. Date of receipt of commencement certificate:

Declaration

1. I hereby exercise the option to pay tax on construction of apartments in the above mentioned project as under :

I shall pay tax on construction of the
apartments:(put (√) in appropriate
box)
At the rate as specified for item (ie) or (if), against serial number 3 in the Table in this notification, as the case may be At the rate as specified for item (i) or (ia) or (ib) or (ic) or (id), against serial number 3 in the Table in this notification, as the case may be

2. I understand that this is a onetime option, which once exercised, shall not be allowed to be changed.

I also understand that invoices for supply of the service can be issued during the period from 1st April 2019 to 20th May 2019 before exercising the option, but such invoices shall be in accordance with the option being exercised herein.

Signature_______
Name_________
Designation________

Place________
Date________

Annexure V

FORM

Form for exercising the option by a Goods Transport Agency (GTA) for payment of GST on the GTA services supplied by him under forward charge before the commencement of any financial year to be submitted before the jurisdictional GST Authority.

Reference No.-
Date: –

1. I/We______________ (name of Person), authorised representative of M/s………………………………. have taken registration/have applied for registration and do hereby undertake to pay GST on the GTA services in relation to transportation of goods supplied by us during the financial year……………… under forward charge in accordance with section 9(1) of the CGST Act, 2017 and to comply with all the provisions of the CGST Act, 2017 as they apply to a person liable for paying the tax in relation to supply of any goods or services or both;

2. I understand that this option once exercised shall not be allowed to be changed within a period of one year from the date of exercising the option and will remain valid till the end of the financial year for which it is exercised.

Legal Name:-
GSTIN:-
PAN No.
Signature of Authorised representative:
Name of Authorised Signatory:
Full Address of GTA:

(Dated acknowledgment of jurisdictional GST Authority)

Note: The last date for exercising the above option for any financial year is the 15th March of the preceding financial year. The option for the financial year 2022-2023 can be exercised by 16th August, 2022.”

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Telegram

taxguru on telegram GROUP LINK

Download our App

  

More Under Goods and Services Tax

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

February 2024
M T W T F S S
 1234
567891011
12131415161718
19202122232425
26272829