GST Rates & Exemptions: List Of 16 Services

The Central Board of Indirect Taxes and Customs (CBIC) has issued clarifications regarding applicable GST rates and exemptions on certain services.The Board has received representations seeking clarification on the various issues, including the GST rate of ice-cream, GST on storage or warehousing of cotton in baled or ginned form, GST on sanitation and conservancy services supplied to the army, etc. The issues have been examined by the GST Council at its 47th meeting, held on June 28th and 29th, 2022. The issue-wise recommendations are as follows:Ice cream parlours are required to pay 18% GST on the supply of ice cream from 6.10.2021 On the recommendation of the GST Council in its 45th meeting, it was clarified that ice cream parlours sell already manufactured ice-cream and they do not have the characteristics of a restaurant. Hence, ice cream sold by a parlour or any similar outlet attracts a standard rate of 18% GST with ITC. The representations were received requesting that 18% GST may be levied on the supply of ice-cream by ice-cream parlours with effect from 06.10.2021. It has been represented that ice cream parlours which paid 5% GST without ITC in view of prevailing doubt before the issuance of the Circular dated 6.10.2021 did not avail ITC and paid 5% in cash. The ice-cream parlours have thus foregone significant ITC benefits. The council recommended that past cases of payment of 5% GST on the supply of ice-cream by ice-cream parlours without ITC be treated as fully GST paid to avoid unnecessary litigation. Because the decision was only to standardise past practice, no refund of GST will be allowed if it was already paid at 18%.With effect from 6.10.2021, the ice-cream parlours are required to pay GST on the supply of ice-cream at the rate of 18% with ITC.No GST on services supplied by "educational institutions" to students The representations have been received regarding the applicability of GST on application fees charged for entrance or the fees charged for the issuance of eligibility certificates for admission or for the issuance of migration certificates by educational institutions. The council clarified that the educational services supplied by educational institutions to their students are exempt from GST. The consideration charged by the educational institutes by way of an entrance fee for the conduct of entrance examinations is also exempt. The exemption is wide enough to cover the amount or fee charged for admission or entrance, or the amount charged for application fee for entrance, or the fee charged to prospective students for the issuance of an eligibility certificate to them in the process of their entrance or admission to the educational institution. Services supplied by an educational institution by way of the issuance of a migration certificate to the leaving or ex-students are also covered by the exemption. The GST exemption is available on the amount or fee charged by prospective students for admission, or for the issuance of eligibility certificates to them in the process of their admission and the fee charged for the issuance of migration certificates by educational institutions to the leaving or ex-students.GST Exemption on service by way of storage or warehousing of cotton withdrawn from July 18, 2022 The representations were received regarding the applicability of the GST exemption on the service of storage or warehousing of cotton in baled or ginned form. Prior to 18.07.2022, entry 24 B of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 exempted services by way of storage and warehousing of, inter alia, raw vegetable fibres such as cotton, flax, jute etc. The Cotton Fiber glossary by barnhardtcotton.net defines "cotton staple, virgin cotton, or raw cotton" as cotton fibres that are removed from the cotton seed by the gin. The council clarified that service by way of storage or warehousing of cotton in ginned or baled form was covered under entry 24B of notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 in the category of raw vegetable fibres such as cotton. It may, however, be noted that the exemption has been withdrawn with effect from 18.07.2022.No GST on the movement of empty containers from Nepal and Bhutan, after delivery of goods The representations were received regarding the applicability of GST on transportation of empty containers returning from Nepal and Bhutan after delivery of transit cargo to India. The GST on the supply of services associated with transit cargo to Nepal and Bhutan was exempted w.e.f. 29.09.2017 based on recommendations of the 20th GST Council Meeting. It was clarified that exemption under Sl. No. 9B of Notification 12/2017-Central Tax (Rate) covers services associated with transit cargo both to and from Nepal and Bhutan. The movement of empty containers from Nepal and Bhutan, after...

GST Rates & Exemptions: List Of 16 Services

Mariya Paliwala

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INR 1099+GST

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GST Rates & Exemptions: List Of 16 Services

Mariya Paliwala

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

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This is a premium content
Available exclusively to
Our subscribers