CBIC amends notification No. 11/2017- Central Tax (Rate) so as to notify CGST rates of various services as recommended by GST Council in its 37th meeting held on 20.09.2019 vide Notification No. 20/2019-Central Tax (Rate) dated 30th September, 2019.

Hospitality and tourism (lodging)

The rate of GST on hotel accommodation service as below: –

Transaction Value per Unit (Rs) per day GST

Rs 1000 and less – Nil

Rs 1001 to Rs 7500 – 12%

Rs 7501 and more. – 18%

Outdoor catering

  • Rate of GST on outdoor catering services other than in premises having daily tariff of unit of accommodation of Rs 7501 reduced from present 18% with ITC to 5% without ITC. The rate shall be mandatory for all kinds of catering.
  • Catering in premises with daily tariff of unit of accommodation is Rs 7501 and above shall remain at 18% with ITC.

Job Work Services

  • For diamond related services
    • Rate of GST reduced from 5% to 1.5% on supply of job work services in relation to diamonds.
  • For engineering related services other than bus body bldg.
    • The rate of GST reduced from 18% to 12% on supply of machine job work such as in engineering industry, except supply of job work in relation to bus body building which would remain at 18%.

Government of India
Ministry of Finance
(Department of Revenue)

Notification No. 20/2019- Central Tax (Rate)

New Delhi, the 30th September, 2019

G.S.R 731(E).- In exercise of the powers conferred by sub-sections (1), (3) and (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 the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 11/201 7- Central Tax (Rate), dated the 28th June, 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, namely:-

In the said notification, –

(i) in the Table, –

(a) against serial number 7, for the entries relating thereto in column (3), (4) and (5), the following items and entries shall be substituted, namely, –

(3) (4) (5)
“(i) Supply of hotel accommodation having value of supply of a unit of accommodation above one thousand rupees but less than or equal to seven thousand five hundred rupees per unit per day or equivalent. 6
(ii) Supply of restaurant service other than at specified premises 2.5 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. (iv)]
(iii) 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. 2.5   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. (iv)]
(iv) 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 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)]
(v) 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 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)]
(vi) Accommodation, food and beverage services other than (i) to (v) above Explanation:

(a) For the removal of doubt, it is hereby clarified that, supplies covered by items (ii), (iii), (iv) and (v) in column (3) shall attract central tax prescribed against them in column (4) subject to conditions specified against them in column (5), 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 ‘hotel accommodation’ having value of supply of a unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent.

(d) This entry covers supply of outdoor catering, provided by suppliers providing hotel accommodationat specified premises, or suppliers located in specified premises.

(e) This entry covers composite supply of outdoor cateringtogether 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 -”;

(b) against serial number 10, in column (2), after the word “vehicles”, the words “with operators” shall be inserted;

(c) against serial number 10, in column (3), in item (iii), the words “or without” shall be omitted;

(d) against serial number 15, in column (3), item (iv) and the entries relating thereto in column (4) and (5) shall be omitted;

(e) against serial number 15, in column (3), in item (vii), the brackets and words “, (iv)” shall be omitted;

(f) against serial number 17, in column (2), the figures and words “, with or” shall be omitted;

(g) against serial number 17, in column (3), item (v) and (vii) and the entries relating thereto in column (4) and (5) shall be omitted;

(h) against serial number 17, in column (3), for item (viii), the following shall be substituted;

(3)

“(viii) Leasing or rental services, without operator, other than (i), (ii), (iii), (iv), (vi), and (viia) above.”

(i) against serial number 21, after item (i) in column (3) and the entries relating thereto in columns (3), (4) and (5), the following shall be inserted, namely: –

(3) (4) (5)
“(ia) Other professional, technical and business services relating to exploration, mining or drilling of
petroleum crude or natural gas or both
6 -”;

(j) against serial number 21, in column (3), in item (ii), for the brackets and words “(i) above”, the brackets and words “(i) and (ia) above” shall be substituted;

(k) against serial number 24, in column (2), after the numbers “9986”, the brackets, words and figures “(Support services to agriculture, hunting, forestry, fishing, mining and utilities)” shall be inserted;

(l) against serial number 24, in column (3), in item (ii), for the words “Service of”, the words “Support services to” shall be substituted;

(m) against serial number 26, in column (3), in item (i), in clause (c), after the words “products”, the figures and words “, other than diamonds,” shall be inserted;

(n) against serial number 26, in column (3), after item (ia) and the entries relating thereto in columns (3), (4) and (5), the following shall be inserted, namely: –

(3) (4) (5)
“(ib) Services by way of job work in
relation to diamonds falling under chapter
0.75
71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975);
(ic) Services by way of job work in relation to bus body building; 9
(id) Services by way of job work other than (i), (ia), (ib) and (ic) above; 6 -”;

(o) against serial number 26, in column (3), in item (iv), after the brackets, words and figures “(ia),”, the brackets, words and figures “(ib), (ic), (id),” shall be inserted;

(ii) in the paragraph 2A, the word “registered” shall be omitted;

(iii)in paragraph 4 relating to explanation, after clause (xxxi), the following clauses shall be inserted, namely:-

“(xxxii) ‘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.

(xxxiii) ‘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.

(xxxiv)Hotel accommodationmeans 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.

(xxxv)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 offere Id on the published charges for such unit.

(xxxvi)Specified premisesmeans 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.”.

(iv) in the ‘Annexure: Scheme of Classification of Services, annexed to the notification, –

(a) against serial number 119 to 124, in column (4), for the words “with or without”, wherever they occur, the word “with” shall be substituted;

(b) against serial number 232 to 240, in column (4), for the words “with or without”, wherever they occur, the word “without” shall be substituted.”.

2. This notification shall come into force with effect from the 1st day of October, 2019.

[F. No.354/136/2019 -TRU]

(Ruchi Bisht)
Under Secretary to the Government of India

Note: – The principal notification No. 11/2017 – Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 690 (E), dated the 28th June, 2017 and was last amended by notification No. 10/2019-Central Tax (Rate), dated the 10th May, 2019, published vide number G.S.R. 354(E), dated the 10th May, 2019.

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8 Comments

  1. ARJUN G says:

    will Repairs and Maintenance covered under job work in GST. if so Tariff heading is different for job work and repairs and maintenance. No change in Rate of GST for repairs which satisfy definition of job work. Can dealer proving service of repair take the benefit of this notification of reduced tax?

  2. NILESH KUMAWAT says:

    Respected ma’am,
    if I am taking ITC on outdoor catering services then should it be 5% or 18%? if I am a normal outdoor caterer providing services in -premises whose rent is paid by customer?

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