GIST of notifications issued on 26th July 2018

(Effective date- 27^th July 2018)

A new item (ia) has been inserted in S.No-7 wherein an option has been given by way of insertion of item (ia) to tax “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” at 5% without claiming input tax credit.

The word “declared tariff” wherever occurred has been substituted with the word “value of supply” providing a major relief to the hotel industry wherein rate of tax on accommodation services shall be based on transaction value instead of declared tariff.

The description contained in item (v) in S. No. 7 dealing with outdoor catering services has been rationalized to include only those supplies 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.

A new item (via) has been included in S. No- 9 wherein tax rate of 12% has been prescribed where there is multi modal transportation of goods.

In S.No-22, a specific rate of 5% has been prescribed on supply of e- books.

(Effective date 27^th July 2018)

1. Services by an old age home run by Central Government, State Government or by an entity registered under Section 12AA of the Income-tax Act, 1961 to its residents (aged 60 years or more) against consideration upto twenty-five thousand rupees per month per member.

2. Services supplied by electricity distribution utilities by way of construction, erection, commissioning, or installation of infrastructure for extending electricity distribution network upto the tube well of the farmer or agriculturalist for agricultural use.

3. Services by Coal Mines Provident Fund Organization to persons governed by the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948

4. Services by National Pension System (NPS) Trust to its members against consideration in the form of administrative fee.

5. Services supplied by Central Government, State Government, Union territory to their undertakings or PSUs by way of guaranteeing the loans taken by such undertakings or PSUs from the financial institutions.

6. Services by way of licensing, registration and analysis or testing of food samples supplied by the Food Safety and Standards Authority of India (FSSAI) to Food Business Operators.

7. Services by way of artificial insemination of livestock (other than horses).

8. Services supplied by a State Government to Excess Royalty Collection Contractor (ERCC) by way of assigning the right to collect royalty on behalf of the State Government on the mineral dispatched by the mining lease holders.

9. Services provided by an unincorporated body or a non-profit entity registered under any law for the time being in force, engaged in –

• activities relating to the welfare of industrial or agricultural labour or farmers; or
• promotion of trade, commerce, industry, agriculture, art, science, literature, culture, sports, education, social welfare, charitable activities and protection of environment,
• To its own members against consideration in the form of membership fee upto an amount of one thousand rupees (Rs 1000/-) per member per year.
•  Some important changes and clarifications are also made and some of them are:-
• The word ‘declared tariff’ has been replaced with ‘value of supply’ in serial no. 14 to exempt services by a hotel, guest house etc. for residential or lodging purposes, where value of supply is less than Rs. 1000 per day or equivalent.

In S. No. 19A and 19B the sunset clause has been extended to September 30, 2019 for service by way of transportation of goods by an aircraft/ Vessel from customs station of clearance in India to a place outside India.

Supply of services provided by State and Central educational boards to students for conduct of examination will be exempt.

(Effective date- 1^st

Explanation has been inserted in order to clarify the meaning of “Renting of immovable property” as means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property.

A brief of change in tax rate of some specified items are as follows:-

GST rates reduction on items:-

A. From GST @ 28% to GST @18% 

1. Paints and varnishes (including enamels and lacquers)

2. Glaziers’ putty, grafting putty, resin cements

3. Refrigerators, freezers and other refrigerating or freezing equipment including water cooler, milk coolers, refrigerating equipment for leather industry, ice cream freezer etc.

4. Washing machines, Lithium-ion batteries, Vacuum cleaners

5. Domestic electrical appliances such as food grinders and mixers & food or vegetable juice extractor, shaver, hair clippers etc.

6. Storage water heaters and immersion heaters, hair dryers, hand dryers, electric smoothing irons etc.

7. Televisions upto the size of 68 cm

8. Special purpose motor vehicles. e.g., crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries

9. Works trucks [self-propelled, not fitted with lifting or handling equipment] of the type used in factories, warehouses, dock areas or airports for short transport of goods.

10. Trailers and semi-trailers.

11. Miscellaneous articles such as scent sprays and similar toilet sprays, powder-puffs and pads for the application of cosmetics or toilet preparations.

B. From GST @ 28/18% to GST@ 12%

1. Fuel Cell Vehicle.

2. Slide fasteners.

3. Brass Kerosene Pressure Stove.

C. From GST@ 12/18% to 5%

1. Footwear having a retail sale price upto Rs 1000 per pair.

2. Article of apparel and clothing accessories or cap/topi, knitted or crocheted, of sale value not exceeding Rs 1000 per piece.

(Effective date 27^th July 2018)

Items added in the exemption notification are:-

1. Stone/Marble/Wood Deities

2. Rakhi [other than that of precious or semi-precious material of chapter 71]

3. Sanitary Napkins,

4. Coir pith compost

5. Sal Leaves siali leaves and their products and Sabai Rope

6. PhoolBhariJhadoo [Raw material for Jhadoo]

7. Khali Dona.

8. Circulation and commemorative coins, sold by Security Printing and Minting Corporation of India Ltd [SPMCIL] to Ministry of Finance.

(Effective date- 1^st August 2018)

In the said notification, list of items contained in serial numbers 1, 2, 3, 4, 5, 6, 6A, 6B, 6C and 7 (pertaining to fabric sector) has been amended so as to allow refund of accumulated ITC arising on account of inverted duty structure on supplies received on or after August 01, 2018. In respect of any supplies received before such date, the accumulated ITC shall lapse.

(Effective date- 27^th July 2018)

(Effective date- 27^th July 2018)