The Goods and Services Tax (GST) landscape is dynamic, with frequent updates and clarifications. To help you stay informed, here’s a summary of the latest GST circulars and notifications issued from October 31 to November 4, 2023:
1. CBIC clarifies that imitation zari thread or yarn made from metallised polyester/ plastic film is taxable at 5%
CBIC has issued a circular to clarify that imitation zari thread or yarn made from metallised polyester film/ plastic film falling under HSN 5605 is taxable at 5% and no refund will be permitted on polyester film (metallised)/ plastic film on account of inversion of tax rate.
(Circular No. 205/17/2023-GST dt. 31-10-2023)
2. Clarification on whether ‘same line of business’ in case of passenger transport service and renting of motor vehicles includes leasing of motor vehicles without operators
CBIC has issued a circular to clarify that input services in the same line of business include transport of passengers (SAC 9964) or renting of motor vehicle with operator (SAC 9966) and not leasing of motor vehicles without operator (SAC 9973) which attracts GST and/or compensation cess at the same rate as supply of motor vehicles by way of sale.
(Circular No. 206/18/2023-GST dt. 31st October, 2023)
3. Clarification on whether GST is applicable on reimbursement of electricity charges received by real estate companies, malls, airport operators etc. from their lessees/ occupants
CBIC has issued a circular to clarify that whenever electricity is being supplied bundled with renting of immovable property and/or maintenance of premises, as the case may be, it forms a part of composite supply and shall be taxed accordingly. The principal supply is renting of immovable property and/or maintenance of premise, as the case may be, and the supply of electricity is an ancillary supply as the case may be. Even if electricity is billed separately, the supplies will constitute a composite supply and therefore, the rate of the principal supply i.e., GST rate on renting of immovable property and/or maintenance of premise, as the case may be, would be applicable.
However, where the electricity is supplied by the Real Estate Owners, Resident Welfare Associations (RWAs), Real Estate Developers etc., as a pure agent, it will not form part of value of their supply. Further, where they charge for electricity on actual basis that is, they charge the same amount for electricity from their lessees or occupants as charged by the State Electricity Boards or DISCOMs from them, they will be deemed to be acting as pure agent for this supply.
(Circular No. 206/18/2023-GST dt. 31st October, 2023)
4. Clarification on whether job work for processing of “Barley” into “Malted Barley” attracts GST @ 5% as applicable to “job work in relation to food and food products” or 18% as applicable on “job work in relation to manufacture of alcoholic liquor for human consumption”
CBIC has issued a circular to clarify that job work services in relation to manufacture of malt are covered by the entry at Sl. No. 26 (i) (f) which covers “job work in relation to all food and food products falling under chapters 1 to 22 of the customs tariff” irrespective of the end use of that malt and attracts 5% GST.
(Circular No. 206/18/2023-GST dt. 31st October, 2023)
5. Clarification on whether District Mineral Foundations Trusts (DMFTs) set up by the State Governments are Governmental Authorities and thus eligible for the same exemptions from GST as available to any other Governmental Authority
CBIC has issued a circular to clarify that DMFT set up by the State Governments are Governmental Authorities and thus eligible for the same exemptions from GST as available to any other Governmental Authority.
(Circular No. 206/18/2023-GST dt. 31st October, 2023)
6. Clarification on whether supply of pure services and composite supplies by way of horticulture/ horticulture works (where the value of goods constitutes not more than 25 per cent of the total value of supply) made to CPWD are eligible for exemption from GST under Sr. No. 3 and 3A of Notification no 12/2017-CTR dated 28.06.2017.
CBIC has issued a circular to clarify that supply of pure services and composite supplies by way of horticulture/ horticulture works (where the value of goods constitutes not more than 25 per cent of the total value of supply) made to CPWD are eligible for exemption from GST under Sr. No. 3 and 3A of Notification no 12/2017-CTR dated 28.06.2017.
(Circular No. 206/18/2023-GST dt. 31st October, 2023)
7. CBIC notifies the amnesty scheme for filing of appeals under GST
The CBIC has issued a notification to notify the amnesty scheme for filing of appeal against order passed on or before 31st March, 2023. Now, the assessee can file appeal against such order on or before 31st January, 2024. A sum equal to 12.5% of amount of tax subject to a maximum of 25 crore rupees must be paid, out of which at least 20% should have been paid by debiting from the Electronic Cash Ledger. Moreover, no such appeal shall be admissible in respect of a demand not involving tax.
(Notification No. 53/2023– Central Tax dated November 2nd, 2023)
8. authorized 170 more booking post offices to accept consignments for export
The Department of Post vide O.M. dated 11.10.2023 has authorized 170 more booking post offices to accept consignments for export.
(Circular No. 27/2023-CUSTOMS dt. 01-11-2023)
GSTN has issued an advisory to inform that functionality of Biometric-based Aadhaar Authentication for GST registration was launched in Puducherry on 30th August 2023 and will be rolled out in Gujarat on 7th November 2023. The said functionality now also provides for the document verification and appointment booking process which is as follows:
After the submission of the application in Form GST REG-01, the applicant will receive either of the following links in the e-mail:
A Link for OTP-based Aadhaar Authentication; or
A link for booking an appointment with a message to visit a GST Suvidha Kendra (GSK) along with the details of the GSK and jurisdiction, for Biometric-based Aadhaar Authentication and document verification.
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