Amendments in GST Rates of Specified Goods
The CBIC vide Notification No. 14/2019 – Central Tax (Rate) dated 30.09.2019 further amended 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: –
- Other non-alcoholic beverages [other than tender coconut water] “and caffeinated beverages”;
- Wet grinder consisting of stone as grinder;
- Railway or tramway goods vans and wagons, not self-propelled;
- Rail locomotives powered from an external source of electricity or by electric accumulators;
- 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”.
Amendments in GST Rates of Specified Services
The CBIC vide Notification No. 20/2019- Central Tax (Rate) dated 30.09.2019 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:
- 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;
- Supply of “restaurant service” other than at “specified premises”.
GST Exemption on certain goods
The CBIC vide Notification No. 15/2019- (CT Rate) dated 30.09.2019 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.
Manufacturers of Aerated Waters excluded from Composition Scheme
Central Government vide notification no. 43/2019-Central Tax & No. 18/ 2019 Central Tax (Rate) on 30.09.2019 has notified that manufacture of aerated waters (HSN-22021010) will not be able to opt for composition scheme under GST laws. Such exclusion is applicable from 1
st October 2019.
Service by way of grant of alcoholic liquor licence is a neither supply of goods nor services
Central Government vide notification no. 25/2019-Central Tax (Rate) on 30.09.2019 has notified that
Service by way of grant of alcoholic liquor license, against consideration in the form of license fee or application fee or by whatever name it is called
by the State Governments in which they are engaged as public authorities, shall be treated neither as a supply of goods nor a supply of service. This notification is applicable 1
st October 2019.
RCM applicable on Purchase of Cement from Unregistered Dealer
Central Government vide notification no. 24/2019-Central Tax (Rate) on 30.09.2019 has notified that with effect from 1
st October 2019, GST under Reverse Charge shall be payable by “promoters” on purchase of
Cement (Under Heading 2523) from Unregistered Supplier.
Time of Supply change for Supply of Development Rights
CBIC vide Notification No. 23/2019- (CT Rate) dated 30.09.2019 has put a retrospective sunset clause on applicability of Notification No. 04/2018- (CT Rate) dated 25.01.2018 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.
GST under RCM applicable on various services
Central Government vide notification no. 22/2019-Central Tax (Rate) dated 30.09.2019 extended the list of services on which GST shall be payable under Reverse Charge Mechanism w.e.f 01.10.2019. Few of the newly added services are as below:
- Services provided by way of renting of a motor vehicle provided to a body corporate.
- 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
GST exempted on Services recommended in 37th Council meeting
Central Government vide notification no. 21/2019-Central Tax (Rate) on 30.09.2019 exempted the following services as recommended by GST Council in its 37
th meeting held on 20.09.2019.
- 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”.
- 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.
- 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.
- Services by way of right to admission to the events organized under FIFA U-17 Women’s World Cup 2020.
- 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 up to 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 up to September 2019.
Exemption of intermediary services in certain case
The CBIC vide Notification No. 20/2019- (IT Rate) dated 30.09.2019 amended Notification No. 09/2017- (IT Rate) dated 28.06.2017 so as to exempt “Services provided by an intermediary when location of both supplier and recipient of goods is outside the taxable territory”.
Notified POS of R&D services related to pharmaceutical sector
The CBIC vide Notification No. 04/2019- (IT) dated 30.09.2019 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.
Levy Compensation Cess @ 12% on Caffeinated Beverages
The CBIC vide Notification No. 02/2019- (Compensation Cess rate) dated 30.09.2019 has amended Notification No. 01/2017-(Compensation Cess rate) dated 28.06.2017 to inter-alia levy Compensation Cess @ 12% on Caffeinated Beverages.
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Last Updated: 7th October 2019
This article is contributed by:
Vaibhav Matta
Assistant Director, Taxation
