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Amendments in Goods and Services Tax – 20th Sep ’19

Goods & Services Tax

Particularly, on 20th September 2019, 37th GST Council meeting was held. Furthermore, there are several changes presented in Goods and Service Tax rates.

However, Central Government has now provided an effect on the recommendation of the GST in India council vide various notification date 30th September 2019. All this notification shall be effective from 1st October unless specified a different date.

Finally, below are the highlights of all the notification:

Notification No.
Gist of Amendments
Following is the Amendment in the rate of Goods and Services Tax

Notification No. 14/2019-Central Tax (Rate)

In this case, the CBIC further amends the GST Rate of Specified Goods

The CBIC has issued Notification No. 14/2019 – Central Tax (Rate) dated September 30, 2019, which further amends the GST Rate of various goods notified under Notification No. 01/2017 CT(R) dated June 28, 2017. Below is the list of few amendments that have been bought in the following goods: –

1. Like other non-alcoholic beverages [other than tender coconut water] “and caffeinated beverages”

2. Similarly, Railway or tramway goods vans and wagons, not self-propelled.

3. Moreover, woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of a kind used for the packing of goods”;

Notification No. 20/2019- Central Tax (Rate)

The CBIC further amends the GST Rate of specified Services

The CBIC vide Notification No. 20/2019- Central Tax (Rate) dated September 30, 2019, has further amended Notification No. 11/2017- CT(R) dated June 28, 2017. The list of few services wherein amendment has been brought is as below:

1. 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/day or equivalent.

2. Supply of “restaurant service” other than at “specified premises”

Below are the Exemption of Goods and Services Tax

Notification No. 15/2019-Central Tax (Rate)

CBIC exempts certain goods

The CBIC vide Notification No. 15/2019- (CT Rate) dated September 30, 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.

Notification No. 21/2019-Central Tax (Rate)

CBIC exempts and rationalises certain services

The CBIC vide Notification No. 21/2019- (CT Rate) dated September 30, 2019, has amended Notification No. 12/2017- (CT Rate) dated June 28, 2017 (“Services exemption notification”) to rationalise or further exempt certain services as under:

  • Services provided by the Central Government, State Government, Union territory or local authority to a business entity with an aggregated turnover of up to “such amount in the preceding financial year as makes it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017 (12 of 2017)” is exempt. Earlier the turnover was specified as “twenty lakh rupees (ten lakh rupees in case of a special category state) in the preceding financial year” which has now been rationalised.
  • S. 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”
  • Amendment has been brought under S. No. 14 of Services exemption notification to clarify that services by way of residential or lodging purposes, having a value of supply of a unit of accommodation below or up to one thousand rupees per day is exempt.

More Updates:

  • 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.
  • S. No. 24B has been inserted in Services exemption notification to exempt “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”
  • S. No. 29B has been inserted in Services exemption notification to exempt “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”
  • S. No. 35 of Services exemption notification has been amended to exempt services of general insurance business provided under “Bangla Shasya Bima” scheme

 

Services provided by:

        1. an arbitral tribunal

        2. a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services

        3. a senior advocate, by way of legal services to inter-alia a business entity with an aggregated turnover of up to “such amount in the preceding financial year as makes it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017 (12 of 2017)” is exempt. Earlier the turnover was specified as “twenty lakh rupees (ten lakh rupees in case of a special category state) in the preceding financial year” which has now been rationalised.

  • S. No. 82A has been inserted in Services exemption notification to exempt “Services by way of right to admission to the events organised under FIFA U-17 Women’s World Cup 2020”

However, this Notification is effective from October 01, 2019.

Similarly, other Notifications are issued under UTGST and IGST Law.

In addition, “Services provided by an intermediary when the location of both supplier and recipient of goods is outside the taxable territory”, subject to certain conditions, have been exempted by way of additional amendment in IGST notification.

Notification No. 20 /2019- Integrated Tax (Rate)

In particular, the CBIC vide Notification No. 20/2019- (IT Rate) dated September 30, 2019, amended Notification No. 09/2017- (IT Rate) dated June 28, 2017, so as to exempt “Services provided by an intermediary when the location of both supplier and recipient of goods is outside the taxable territory”.
Similarly below are the other Notifications:

Notification No. 16/2019-Central Tax (Rate)

The CBIC vide Notification No. 16/2019- (CT Rate) dated September 30, 2019 amended Notification No. 03/2017- (CT Rate) dated June 28, 2017 so as to extend concessional CGST rates of 2.5% 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)”

Notification No. 17/2019-Central Tax (Rate)

The CBIC vide Notification No. 17/2019- (CT Rate) dated September 30, 2019, amended Notification No. 26/2018- (CT Rate) dated December 31, 2018, so as to exempt CGST on supplies of silver and platinum by nominated agencies to registered persons.

For example, exempting CGST on silver and platinum supplies so as to exempt CGST on supplies of silver and platinum by nominated agencies to registered persons.

Notification No. 18/2019-Central Tax (Rate)

Subsequently, the CBIC vide Notification No. 18/2019- (CT Rate) dated September 30, 2019, amended Notification No. 02/2019- (CT Rate) dated March 07, 2019 so as to exclude manufacturers of aerated waters from the purview of composition scheme.

Notification No. 19/2019-Central Tax (Rate)

Here, the CBIC vide Notification No. 19/2019- (CT Rate) dated September 30, 2019, has exempted supply of goods for specified projects under the Food and Agricultural Organisation of the United Nations.

Notification No. 23/2019-Central Tax (Rate)

In this case, the CBIC vide Notification No. 23/2019- (CT Rate) dated September 30, 2019, has put a retrospective sunset clause on the applicability of Notification No. 04/2018- (CT Rate) dated January 25, 2018 w.r.t. development rights supplied on or after April 01, 2019. The later Notification provided a special procedure to be followed while determining the time of supply in case of construction services against the transfer of development rights.

Notification No.43/2019-Central Tax

The CBIC vide Notification No. 43/2019- (CT) dated September 30, 2019, amended Notification No. 14/2019- (CT) dated March 07, 2019 so as to exclude manufacturers of aerated waters from the purview of composition scheme.

Notification No. 22/2019- Central Tax (Rate)

Particularly, CBIC notifies certain services under Reverse Charge Method u/s 9(3) of the CGST Act

Following are the list of few services which has been made leviable under Reverse charge Mechanism subject to certain conditions:

1. In case of 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.

2. Furthermore, Services provided by renting a motor vehicle to a corporate body.

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

Notification No. 24/2019- Central Tax (Rate)

Moreover, the CBIC vide Notification No. 24/2019- (CT Rate) dated September 30, 2019, has amended Notification No. 07/2019 – (CT Rate) dated March 29, 2019, by amending the entry related to cement on which GST is leviable under Reverse Charge Mechanism.

Notification No. 25/2019-Central Tax (Rate)

Likewise, Grant of a liquor license by State Govt to be treated as “no supply” in GST

The CBIC vide Notification No. 25/2019-Central Tax (Rate) dated September 30, 2019has notified “service by way of grant of alcoholic liquor licence, against consideration in the form of a licence fee or application fee or by whatever name it is called” undertaken by the State Governments in which they are engaged as public authorities,  as neither a supply of goods nor a supply of service.

Notification No. 04/2019- Integrated Tax

As per the rule, the CBIC vide Notification No. 04/2019- (IT) dated September 30, 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 service i.e. location of the service recipient.

Notification No. 2/2019-Compensation Cess (Rate)

Thereby, the CBIC vide Notification No. 02/2019- (Compensation Cess rate) dated September 30, 2019, has amended Notification No. 01/2017-(Compensation Cess rate) dated June 28, 2017, to inter-alia levy Compensation Cess @ 12% on Caffeinated Beverages.

Notification No. 03/2019-Compensation Cess (Rate)

Furthermore, The CBIC vide Notification No. 03/2019- (Compensation Cess rate) dated September 30, 2019, has disallowed the refund of compensation cess in case of inverted duty structure for tobacco and manufactured tobacco substitutes.

To summarize, these were the recent notifications and updates in GST in India. However, we will keep you informed with more information on the legal and financial domain.

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