Gist of Notifications issued in order to implement the recommendations of the GST Council in their meeting held on September 20, 2019

There are several changes proposed in GST rates on specified goods and services during the 37th GST Council meeting held on September 20, 2019.

The Central Government has now given effect to the recommendations of the GST Council vide various notifications dated September 30, 2019 and all such notifications, unless specifically mentioned otherwise, shall be effective from October 01, 2019.

Important highlights of all such notifications has been summarised for your easy digest:

Notification No. Gist of Amendments
Amendment in rate of Goods and Services
Notification No. 14/2019-Central Tax (Rate) The CBIC further amends the GST Rate of Specified Goods

The CBIC has issued Notification No. 14/2019 – Central Tax (Rate) dated September 30, 2019, which further amends the GST Rate of various goods notified under Notification No. 01/2017 CT(R) dated June 28, 2017. The list of few goods wherein amendment has been brought are as under: –

1. Other non-alcoholic beverages [other than tender coconut water] “and caffeinated beverages”

2. Railway or tramway goods vans and wagons, not self-propelled.

3. Woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of a kind used for packing of goods”;

Notification No. 20/2019- Central Tax (Rate) The CBIC further amends the GST Rate of specified Services

The CBIC vide Notification No. 20/2019- Central Tax (Rate) dated September 30, 2019 has further amended Notification No. 11/2017- CT(R) dated June 28, 2017. The list of few services wherein amendment has been brought are as under:

1. Supply of “hotel accommodation” having a value of supply of a unit of accommodation above one thousand rupees (> Rs. 1,000/-) but less than or equal to seven thousand five hundred rupees (< Rs. 7,500/-) per unit per day or equivalent.

2. Supply of “restaurant service” other than at “specified premises”

Exemption of Goods and Services
Notification No. 15/2019-Central Tax (Rate) CBIC exempts certain goods

The CBIC vide Notification No. 15/2019- (CT Rate) dated September 30, 2019 has amended Notification No. 02/2017- (CT Rate) dated June 28, 2017 to exempt following products which were earlier taxable @5%:

  • Tamarind dried
  • Plates and cups made up of leaves/ flowers/bark.
Notification No. 21/2019-Central Tax (Rate) CBIC exempts and rationalises certain services

The CBIC vide Notification No. 21/2019- (CT Rate) dated September 30, 2019 has amended Notification No. 12/2017- (CT Rate) dated June 28, 2017 (“Services exemption notification”) to rationalise or further exempt certain services as under:

  • Services provided by the Central Government, State Government, Union territory or local authority to a business entity with an aggregate turnover of up to “such amount in the preceding financial year as makes it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017 (12 of 2017)” is exempt. Earlier the turnover was specified as “twenty lakh rupees (ten lakh rupees in case of a special category state) in the preceding financial year” which has now been rationalised.
  • S. No. 9AA has been inserted in Services exemption notification to exempt “Services provided by and to FIFA and its subsidiaries directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020 to be hosted in India”
  • Amendment has been brought under S. No. 14 of Services exemption notification to clarify that services by way of residential or lodging purposes, having value of supply of a unit of accommodation below or upto one thousand rupees per day is exempt.
  • Condition to S. No. 19A/ 19B of Services exemption notification has been amended to extend the exemption of services by way of transportation of goods by an aircraft/ vessel from customs station of clearance in India to a place outside India till September 2020. Earlier it was exempted only upto September 2019.
  • S. No. 24B has been inserted in Services exemption notification to exempt “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”
  • S. No. 29B has been inserted in Services exemption notification to exempt “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”
  • S. No. 35 of Services exemption notification has been amended to exempt services of general insurance business provided under “Bangla Shasya Bima” scheme
  • Services provided by

1. an arbitral tribunal

2. a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services

3. a senior advocate by way of legal services

to inter-alia a business entity with an aggregate turnover of up to “such amount in the preceding financial year as makes it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017 (12 of 2017)” is exempt. Earlier the turnover was specified as “twenty lakh rupees (ten lakh rupees in case of a special category state) in the preceding financial year” which has now been rationalised.

  • S. No. 82A has been inserted in Services exemption notification to exempt “Services by way of right to admission to the events organised under FIFA U-17 Women’s World Cup 2020”

This Notification is effective from October 01, 2019.

Similar Notifications are issued under UTGST and IGST Law.

In addition, “Services provided by an intermediary when location of both supplier and recipient of goods is outside the taxable territory”, subject to certain conditions, has been exempted by way of additional amendment in IGST notification.

Notification No. 20 /2019- Integrated Tax (Rate) The CBIC vide Notification No. 20/2019- (IT Rate) dated September 30, 2019 amended Notification No. 09/2017- (IT Rate) dated June 28, 2017 so as to exempt “Services provided by an intermediary when location of both supplier and recipient of goods is outside the taxable territory”.
Other Notifications:
Notification No. 16/2019-Central Tax (Rate) The CBIC vide Notification No. 16/2019- (CT Rate) dated September 30, 2019 amended Notification No. 03/2017- (CT Rate) dated June 28, 2017 so as to extend concessional CGST rates of 2.5% to “Petroleum operations or coal bed methane operations undertaken under specified contracts under the Hydrocarbon Exploration Licensing Policy (HELP) or Open Acreage Licensing Policy (OALP)”
Notification No. 17/2019-Central Tax (Rate) The CBIC vide Notification No. 17/2019- (CT Rate) dated September 30, 2019 amended Notification No. 26/2018- (CT Rate) dated December 31, 2018, so as to exempt CGST on supplies of silver and platinum by nominated agencies to registered persons.
Notification No. 18/2019-Central Tax (Rate) The CBIC vide Notification No. 18/2019- (CT Rate) dated September 30, 2019 amended Notification No. 02/2019- (CT Rate) dated March 07, 2019 so as to exclude manufacturers of aerated waters from the purview of composition scheme.
Notification No. 19/2019-Central Tax (Rate) The CBIC vide Notification No. 19/2019- (CT Rate) dated September 30, 2019 has exempted supply of goods for specified projects under Food and Agricultural Organisation of the United Nations.
Notification No. 23/2019-Central Tax (Rate) The CBIC vide Notification No. 23/2019- (CT Rate) dated September 30, 2019 has put a retrospective sunset clause on applicability of Notification No. 04/2018- (CT Rate) dated January 25, 2018 w.r.t. development rights supplied on or after April 01, 2019. The later Notification provided special procedure to be followed while determining time of supply in case of construction services against transfer of development rights.
Notification No.43/2019-Central Tax The CBIC vide Notification No. 43/2019- (CT) dated September 30, 2019 amended Notification No. 14/2019- (CT) dated March 07, 2019 so as to exclude manufacturers of aerated waters from the purview of composition scheme.
Notification No. 22/2019- Central Tax (Rate) CBIC notifies certain services under Reverse Charge Method u/s 9(3) of the CGST Act

Following are the list of few services which has been made leviable under Reverse charge Mechanism subject to certain conditions:

1. Supply of services by an author by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of subsection (1) of section 13 of the Copyright Act, 1957 relating to original literary works to a publisher.

2. Services provided by way of renting of a motor vehicle provided to a body corporate.

3. Services of lending of securities under Securities Lending Scheme, 1997 (“Scheme”) of Securities and Exchange Board of India (“SEBI”), as amended.

Notification No. 24/2019- Central Tax (Rate) The CBIC vide Notification No. 24/2019- (CT Rate) dated September 30, 2019 has amended Notification No. 07/2019 – (CT Rate) dated the March 29, 2019 by amending the entry related to cement on which GST is leviable under Reverse Charge Mechanism.
Notification No. 25/2019-Central Tax (Rate) Grant of liquor license by State Govt to be treated as “no supply” in GST

The CBIC vide Notification No. 25/2019-Central Tax (Rate) dated September 30, 2019has notified “service by way of grant of alcoholic liquor licence, against consideration in the form of a licence fee or application fee or by whatever name it is called” undertaken by the State Governments in which they are engaged as public authorities,  as neither a supply of goods nor a supply of service.

Notification No. 04/2019- Integrated Tax The CBIC vide Notification No. 04/2019- (IT) dated September 30, 2019 has notified the place of supply of R&D services related to pharmaceutical sector provided by Indian pharma companies to foreign service recipients, as the place of effective use and enjoyment of a service i.e. location of the service recipient.
Notification No. 2/2019-Compensation Cess (Rate) The CBIC vide Notification No. 02/2019- (Compensation Cess rate) dated September 30, 2019 has amended Notification No. 01/2017-(Compensation Cess rate) dated June 28, 2017 to inter-alia levy Compensation Cess @ 12% on Caffeinated Beverages.
Notification No. 03/2019-Compensation Cess (Rate) The CBIC vide Notification No. 03/2019- (Compensation Cess rate) dated September 30, 2019 has disallowed the refund of compensation cess in case of inverted duty structure for tobacco and manufactured tobacco substitutes.

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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