Various notifications have been issued by CBIC, notifying numerous changes with effect from 01.10.2019. These notifications hace been issued to implement decisions taken at 37th GST Council meet at Goa on 20.09.2019. A gist of the changes are as follows;

Change in Rate of Goods & Services:

(i) Dry Tamarind/ Plates and cups made up of leaves, flowers or bark has been exempted.

(ii) Precious/semi-precious stones, natural or synthetic, to attract rate of 0.25%.

(iii) Marine fuel, Wet stone grinder to attract rate of 5%.

(iv) Polyethylene/polypropylene  bags and sacks, strips (packing material) to attract rate @12%.

(v) Caffeinated beverages to attract rate of 28%.

(vi) Rail locomotives, coaches, vans, parts etc. to attract rate of 12%.

(v) Small motor vehicle for persons with orthopedic physical disability to attract rate of 18%.

(vi) Tax on hotel accommodation [tariff of less than 7500/- per day] has been reduced to 12% and for tariff more than 7500/- per day has been reduced to 18%.

(vii) Rate of tax on Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both has been reduced to 12%.

(viii) Job work to attract general rate of 12%. Job work related to bus body building shall attract rate of 18%. Job work in relation to diamond shall attract a rate of 1.5%.

Other Changes

(i) Notification 3/2017- Central Tax (Rate) has been extended to exempt supply of goods 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).

(ii) GST Benefit of “Export against supply by Nominated agency” scheme has been extended to silver and platinum in addition to Gold.

(iii) Aerated water has been excluded from the benefit of composition scheme.

(iv) Certain supply of goods to Food and Agricultural Organization (FAO) have been exempted.

Reverse Charge Mechanism:

Following services shall attract payment of tax under Reverse Charge mechanism.

(i) Copyright services provided by Music composer, photographer, artist, or the like or author shall attract tax on reverse charge basis.

(ii) Renting of motor vehicle to body corporate.

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

Services by way of grant of alcoholic liquor license:

It has been notified that “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 neither be treated as supply of goods nor supply of services.

(Author is Managing Partner of Rajesh Kumar and Associates. The author can be contacted on rajesh@rklegal.org)

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16 Comments

    1. RKLEGAL says:

      There is no change in rate falling under HSN 9989, services by way of printing.
      However, printing can also be done as job work falling under 9988; if job work definition is satisfied. Whatever change has come has come in the heading 9988.

    1. RKLEGAL says:

      Job work falling under 9988 attract general rate of 12%, except bus body building [18%] and textile articles. Maintenance and repair services are classified in HSN 9987, attracting GST @ 18%.
      Job work is defined under GST law. Under job work, even repair/reconditioning work can also be done. However, job work is done only for a registered supplier, when procedure prescribed under Section 143 if followed. In that case it shall attract GST @12%. However, if the same repair activity is done for unregistered recipient/ or when procedure prescribed under Section 143 is not followed; it shall be classified under HSN 9987 and shall attract GST @18%.

  1. MCSharma says:

    Sir, in order to remove doubts, pl. let us know what is the new rate on plastic related packaging , polythene bags, pouches used as packaging for hosiery garments & other allied sector , its tariff heading is 3923????. Your valuable advice shall be highly appreciated . Regards M.C. Sharma

    1. RKLEGAL says:

      Normally polythene bags, packing material of plastic etc. falls in HSN code 3923. However, certain bags are also made up of woven/non-woven fabrics of man-made material, falling under Chapter Heading 6305. The notification prescribes that the goods shall attract tax at the rate of 18%, even if they are classified as textiles under Chapter heading 6305. Rate of GST under 3923 remains unchanged.

  2. MC Sharma says:

    Sir, in order to remove doubs, pl. let us know what is new rate on plastic related packaging , polythene bags, pouches used as packaging for hosiery garments & other allied sector , its tariff heading is 3923????

  3. Pawan Kumar Yadav says:

    What is GST Rate on Labour Job (AC/Fridge/CCTV/Computer Repair & Contract?
    And What is Notification, date, under rule for below change?

    ” (viii) Job work to attract general rate of 12%. Job work related to bus body building shall attract rate of 18%. Job work in relation to diamond shall attract a rate of 1.5%.:

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