In month of september, 2019, CBIC issued various notifications which have been effective from 01.10.2019. Here, we summarised the major changes which are going to effective from  01.10.2019.

All below notifications shall be effective from 0.10.2019

Extension of Exemption List
Entry No. Earlier  Now New Notification
Principal Notification
7 Service provided by CG/SG/UT to a business entity with an aggregate turnover upto 20 lacs in the preceding FY. The limit of 20 lacs subsititued by “such amount in the P.F.Y as makes it eligible for exemption from registration under CGST Act.” 21/2019 (CTR)
’12/2017 (CTR)
9AA Newly Inserted Services provided by & to FIFA and its subsidiaries. 21/2019 (CTR)
’12/2017 (CTR)
14 Services by a hotel etc. for residential or lodging purposes, having value of supply of a unit of accommodation below 1,000/- per day or equivalent. Equal to Rs. 1,000/- per day is exempt. 21/2019 (CTR)
’12/2017 (CTR)
19A Services by way of transportation of goods by an aircraft from customs station of clearance in India to a place outside India is exempt till 30.09.2019 Exemption extended for 1 year i.e. upto 30.09.2020. 21/2019 (CTR)
12/2017 (CTR)
19B Services by way of transportation of goods by a vessel from customs station of clearance in India to a place outside India is exempt till 30.09.2019 Exemption extended for 1 year i.e. upto 30.09.2020. 21/2019 (CTR)
12/2017 (CTR)
24B Newly Inserted Services by way of storage or warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee and tea. 21/2019 (CTR)
’12/2017 (CTR)
29B Newly Inserted Services of life insurance provided or agreed to be provided by the Central Armed Police Forces (under Ministry of Home Affairs) Group Insurance Funds to their members under the Group Insurance Schemes of the concerned Central Armed Police Force 21/2019 (CTR)
12/2017 (CTR)
35r Newly Inserted Services of general insurance business provided under “Bangla Shasya Bima” Scheme 21/2019 (CTR)
’12/2017 (CTR)
45 Services provided by an arbitral tribunal/ advocates to busineess entity having aggregate turnover upto 20 Lacs in P.F.Y The limit of 20 lacs subsititued by “such amount in the P.F.Y as makes it eligible for exemption from registration under CGST Act.” 21/2019 (CTR)
’12/2017 (CTR)
82A Newly Inserted Services by way of right to admission to the events organised under FIFA U-17 Women’s World Cup 2020 21/2019 (CTR)
’12/2017 (CTR)
N/N 02/2017 i) Tamarind dried (0813) taxable @ 5%
ii) Plates & Cups made up of all kinds of leaves/flowers/bark taxable @ 18%
Following goods shall be exempted:
i) Tamarind dried (0813)
ii) Plates & Cups made up of all kinds of leaves/flowers/bark
15/2019 (CTR)
02/2017 (CTR)
N/N 26/2018 Supply of Gold by nominated agency under the scheme for “Export against supply by nominated agency” to a registered person is exempted w.e.f 01.01.2019 by N/N 26/2018. Now, Exemption are also available for Sliver or Platinum. 17/2019 (CTR)
’26/2018 (CTR)
N/N 19/2019 Normal Rate applies All the goods supplied to the Food and Agricultural Organisation of the United Nations (FAO) for execution of following projects are exempt subject to condition that proper officer certifies (i) QTY. & Description of Goods and (ii) that the said goods are intended for the purpose of use in execution of said projects.

(1. )Strengthening Capacities for Nutrition-sensitive Agriculture and Food systems.
(2) Green Ag: Transforming Indian Agriculture for Global Environment benefits and the conservation of Critical Biodiversity and Forest landscape.

19/2019 (CTR)
Nil
Changes in tax rate of various Goods (N/N 14/2019(CTR))
Old GST Rate Particulars Conditions New GST Rate
? Marine Fuel 0.5% Nil 5%
12% (HSN 8509) Wet grinder consisting of stone as a grinder Nil 5%
? Woven and Non- Woven Bags and sacks of Polyethylene Polypropylene strips, whether laminated or not Nil 12%
5% (HSN 8601 to 8608) Parts of railway or tramway locomotives, wagons, coaches, etc., classified under tariff heading 8601 to 8608 Nil 12%
18% (HSN 22029990) Caffeinated Beverages Nil 28%
Changes in tax rate of various Services (N/N 20/2019 (CTR))
Old GST Rate Particulars Conditions New GST Rate
Hotel Accomodation
Exempted Below 1000 per day Nil Exempted
12% Equal to 1000 per day Nil Exempted
12% Above 1000 but below 2500 Nil 12%
18% Equal & Above 2500 but below 7500 Nil 12%
28% Equal & Above 7500 Nil 18%
5%/12%/18% Restaurant services other than at ‘Specified premises’.
Specified Premises means premises providing hotel accommodation services having declared tariff of any unit of accommodation above Rs. 7,500 per unit per day or equivalent.
ITC charged on goods and services used in supplying the service has not been taken 5%
5% Supply of goods, being food or any other article for human consumption or any drink, by the Indian Railways or IRCTC or their licensees, whether in trains or at platforms. ITC charged on goods and services used in supplying the service has not been taken 5%
18% (HSN9963) Outdoor Catering or Composite supply of ‘outdoor catering’ together with renting of premises or supply of ‘outdoor catering’, at premises other than ‘specified premises’ provided by any person except-
(a) suppliers providing ‘hotel accommodation’ at ‘specified premises’, or
(b) suppliers located in ‘specified premises’
ITC charged on goods and services used in supplying the service has not been taken 5%
NIL Support services to agriculture, hunting, forestry, fishing, mining and utilities, animal husbandary. Nil NIL
12% Support service to services of exploration, mining or drilling of petroleum crude or natural gas or both. Nil 12%
18% Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both Nil 12%
Services by way of job work
? in relation to diamonds falling under chapter 0.75 – 4 71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975); 1.50%
? in relation to bus body building; 18%
18% General Rate other than prescribed 12%
Changes in Supply covered under RCM (N/N 22/2019)
Entry No. Particulars Supplier Recipient
9 Supply of services by an author, music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the lik Author or music composer, photographer, artist, or the like Publisher, music company, producer or the like, located in the taxable territory.
9A Supply of services by an author by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub
-section (1) of section 13 of the Copyright Act, 1957 relating to original literary works to a publisher.
Author Publisher located in the taxable territory:

However, where the author is registered and he make a declaration to pay the tax to proper officer then publisher is not required to pay tax.

15 Services provided by way of renting of a motor vehicle provided to a body corporate Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with ITC only of input service in the same line of business. Any body corporate located in the taxable territory.
16 Services of lending of securities under Securities Lending Scheme, 1997 (“Scheme”) of SEBI, as amended. Lender i.e. a person who deposits the securities registered in his name or in the name of any other person duly authorised on his behalf with an approved intermediary for the purpose of lending under the Scheme of SEBI Borrower i.e. a person who borrows the securities under the Scheme through an approved intermediary of SEBI.”.
Misc. Changes
Now, RCM will be applicable on the goods ‘Cement falling in chapter heading 2523 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975)’ supplied by unregistered supplier to promoter without any condition or limit. Government has widened the applicability of reverse charge on cement supplied by unregistered supplier to promoters. – N/N 24/2019-(CTR)
“Service by way of grant of alcoholic liquor licence, against consideration in the form of licence fee or application fee or by whatever name it is called.” shall be neither be treated as supply of goods nor services.
Caffeinated Beverages (HSN – 22029990) shall attract the compensation cess @ 12% w.e.f. 01.10.2019
No refund of unitilised ITC of compensation cess shall be allowed where ITC accumulated on account of Inverted duty structure for tobacco and manufactured tobacco substitutes.

Best Regards

CA Tarun Garg

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8 Comments

  1. s.s.vijayakumar says:

    What about RCM which was postponed to 30.9.19 for purchase under section 9 (4) for rent paid, etc. Do we have to again start paying tax under RCM?

    1. TARUN GARG says:

      No, GST shall not be required to pay under RCM for supplies from unregistered person except by notified person for specified supplies.

      CBIC deffered the provision of section 9(4) of CGST Act, 2017 which states that supplies from unregistered person to registered person shall be taxable under RCM till 30.09.2019.

      Later on, Section 9(4) of the CGST Act has been amended w.e.f 01.02.2019, according to which only the specified registered person shall require to pay the tax under RCM on specified supplies of goods or services from unregisterd person.

      Currently, the builders are specified registered person only for three supplies of goods like cements, specified capital goods, shortfall on goods or services consumed etc. by notification number 07/2019 (CTR). For detailed study for supplies taxable under RCM- 9(4), you may refer my previous article ” Brief analysis of all CGST Rate Notification published in 2019″.

      Conclusion: Even the CBIC has not issued any notifications for defferment of provisions of section 9(4), the registered persons shall not require to pay the tax under RCM for all the supplies from unregistered person except as notified (as discussed above).

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