Clarification regarding taxability of 16 services are given in Circular - 177/09/2022-GST

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Clarification regarding taxability of 16 services are given in Circular - 177/09/2022-GST. The summary of those clarifications are given below:

1. Past cases of payment of GST on supply of ice-cream by ice-cream parlours @ 5% without ITC shall be treated as fully GST paid to avoid unnecessary litigation. With effect from 06th October 2021, the ice Cream parlours are required to pay GST on supply of ice-cream at the rate of 18% with ITC. 

2. No GST on application fee charged for entrance or the fee charged for issuance of eligibility certificate for admission or for issuance of migration certificate by educational institutions.

3. No GST on Storage or warehousing of cotton in ginned and or baled form because it is in the category of raw vegetable fibres such as cotton. It may however be noted that this exemption has been withdrawn w.e.f 18.07.2022 

4. No GST on services associated with transit cargo both to and from Nepal and Bhutan. 

5. GST exemption on sanitation and conservancy services supplied to Army and other Central and State Government departments is applicable only if they perform any functions listed in the 11th and 12th Schedule of the constitution, in the manner as a local authority does for the general public.

6. GST @ 5% applicable for selling of space for advertisement in souvenirs.

7. GST @ 12% from 18th July 2022 on the transport of minerals from mining pit head to railway siding beneficiation plant etc., by vehicles deployed with driver for a specific duration of time. Prior to 18th July 2022 GST @ 18% was applicable.

8. No GST on Preferential location charges (PLC) paid upfront in addition to the lease premium for long term lease of land constitute part of upfront amount charged for long term lease of land.

9. GST Applicable on services provided by the guest anchors in lieu of honorarium.

10. No GST on additional toll charges collected in the form of higher toll charges from vehicles not having fastag 

11. No GST on services in form of Assisted Reproductive Technology (ART)/ In vitro fertilization (IVF)

12. Service provided for the development of land, like levelling, laying of drainage lines (as may be received by developers) shall attract GST.

13. A body corporate shall not be liable to pay GST under RCM where it avails the passenger transport service for specific journeys or voyages and does not take vehicles on rent for any particular period of time. But GST under RCM shall be payable where the body corporate hires the motor vehicle (for transport of employees etc.) for a period of time, during which the motor vehicle shall be at the disposal of the body corporate.

14.  Hiring of vehicles by firms for transportation of their employees to and from work will be taxable if the firm can decide the manner of usage (route and schedule) of the vehicle. 

15. GST @ 18% from 18th July 2022 on supply of service of construction supply, installation and commissioning of dairy plant on turn-key basis. Prior to 18th July 2022 GST @ 12% was applicable

16. No GST on public as well privately owned ferries for transportation of passengers provided transport should be open to public owned.


SRIVATSAN.R.

MEPZ-SEZ

Chennai

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