Central GST

CA. Rajiv Luthia, CA. Jinit Shah

CBIC vide notification No. 52/2023-CT dated 26th October, 2023 has amended CGST Rules as follows:

  • New Sub Rule 28(2) in the Determination of Value of Supply Rules has been inserted to provide as follows:

    • (2) Notwithstanding anything contained in sub-rule (1), the value of supply of services by a supplier to a recipient who is a related person, by way of providing corporate guarantee to any banking company or financial institution on behalf of the said recipient, shall be deemed to be one per cent of the amount of such guarantee offered, or the actual consideration, whichever is higher.

  • RULE 142: Notice and order for demand of amounts payable under the Act:

    • In Sub Rule (3) of the said Rule for the words “proper officer shall issue an order”, the words “proper officer shall issue intimation” shall be substituted.

    Henceforth, if person to whom adjudication proceedings are initiated under GST law make entire payment of Tax with interest within 30 days from the service of Notice, he shall intimate to the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an intimation in FORM GST DRC-05 concluding the proceedings in respect of the said notice.

  • Rule 159: Provisional Attachment of Property: In sub Rule 2 of the said Rule after the words “Commissioner to that effect”, the words “or on expiry of a period of one year from the date of issuance of order under sub-rule (1), whichever is earlier,” shall be inserted.

    • Thus, with this amendment, Commissioner shall send a copy of the order of attachment to the concerned Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the Commissioner to that effect or on expiry of a period of one year from the date of issuance of order, whichever is earlier.

  • Vide said Notification following Forms have been amended:
    1. Form GST REG 01 Application for Registration: In said Form “One Person Company” has been inserted under the list of the constitution of Business provided under Part B.
    2. Form GST REG 08 Order of Cancellation of Registration as Tax Deductor at source or Tax Collector at source: said Form Substituted with New form
    3. FORM GST 08 Statement of Tax collected at Source
    4. FORM GST PCT-01 Application for GST practitioner
    5. Form DRC 022 Provisional attachment of property u/s 83

    CBIC vide Notification No. 12/2023-CT (RATE) dated 19th October, 2023 has amended principal notification 11/2017-CT (Rate) dated 28th June,2017 (Rate of Supply of services) whereby following new condition has been inserted in Entry no. 8(vi) & 10(i). The Said Notification has been come into force w.e.f 20th October,2023.

    Sr. No.

    Chapter, Section or Heading

    Description of Service

    Rate

    Condition

    8

    Heading 9964 (Passenger transport services)

    (vi)Transport of passengers by any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient.

    2.5%

    Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken.

    Illustration: ‘A’ engages ‘B’ for transport from New Delhi to Jaipur in a motor cab for Rs. 1000. ‘B’, for supplying the said service, hires a motor cab with operator from ‘C’ for Rs. 800. ‘C’ charges ‘B’ central tax at the rate of 6% (Rs. 48). If ‘B’ charges ‘A’ central tax at the rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 48.

    10

    Heading 9966 Rental services of transport vehicles with operators

    Renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient.

    2.5

    Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken.

    Illustration: ‘A’ engages ‘B’ for transport from New Delhi to Jaipur in a motor cab for Rs. 1000. ‘B’, for supplying the said service, hires a motor cab with operator from ‘C’ for Rs. 800. ‘C’ charges ‘B’ central tax at the rate of 6% (Rs. 48). If ‘B’ charges ‘A’ central tax at the rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 48.

    34

    Heading 9996

    (Recreational, cultural and sporting services)

    In said Entry under the item (iv), for the words “totalisator or a license to”, the words “licensing a” shall be substituted

    Thereby, henceforth services provided by a race club by way of licensing a bookmaker in such club is liable to GST at rate of 14%.

    Item (v) VIZ. Gambling which attract GST rate of 14% shall be omitted

    14

    -

    CBIC vide Notification No. 13/2023-CT (RATE) dated 19th October, 2023 made following amendment to principal notification 12/2017-CT (Rate) dated 28th June,2017 as follows:

    1. After the Serial No. 3A following Entry has been inserted:

    Sr. No.

    Heading

    Description of service

    Rate

    Conditions

    “3B

    Chapter 99

    Services provided to a Governmental Authority by way of –

    (a) water supply;

    (b) public health;

    Nil

    NIL
       

    (c) sanitation conservancy;

    (d) solid waste management; and

    (e) slum improvement and upgradation.

    		    

    2. Amendment is done in serial no. 8 of the said exemption notification: Erstwhile, Service provided by The Ministry of Railway (Indian Railway) were exempted from payment of GST. Henceforth, Service provided by Ministry of railway (Indian Railway) will be taxable.

    CBIC vide Notification 14/2023-CT (Rate) dated 19th October,2023 amended principal Notification 13/2017-CT (Rate) dated 28th June,2017 (RCM Notification) to provide that business entity who receives Service from Ministry of Railway shall not be liable to pay under RCM. In order words, service supplied by Ministry of Railway shall be liable under forward charge.

    Sl. No.

    Category of Supply of Services

    Supplier of service

    Recipient of Service

    5

    Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding, -

    (1) _______

    (2) services specified below-

    (i) services by the Department of Posts and the Ministry of Railways (Indian Railways)

    (ii) ______;

    (iii) _____

    Central Government, State Government, Union territory or local authority

    Any business entity located in the taxable territory

    5A

    Services supplied by the Central Government excluding the Ministry of Railways (Indian Railways), State Government, Union territory or local authority by way of renting of immovable property to a person registered under the CGST Act,2017

    Central Government, State Government, Union territory or local authority

    Any person registered under the CGST Act,2017

    CBIC vide Notification 19/2023-CT(Rate) dated 19th October,2023 exclude Ministry of Railways (Indian Railways) from Notification 04/2017-CT(Rate) dated 28th June,2017. Thereby, following goods supplied by Ministry of Railway will not attract GST under RCM but will be liable to be paid by ministry of railway under forward charge.

    S. No.

    Tariff item, sub-heading, heading or Chapter

    Description of supply of Goods

    Supplier of goods

    Recipient of supply

    6.

    Any Chapter

    Used vehicles, seized and confiscated goods, old and used goods, waste and scrap

    6[Central Government [excluding Ministry of Railways (Indian Railways)], State Government, Union territory or a local authority.]

    Any registered person.]

    CBIC vide Notification No. 15/2023-Central Tax (Rate) dated 19th October,2023 made following amendment to Notification 15/2017-CT(Rate) dated 28th June,2017 (suppliers not eligible for refund of unutilised ITC).

    • In said Notification for the words specified in sub-item (b) of item 5 of Schedule II of the Central Goods and Services Tax Act”, the words, “of construction of a complex, building or a part thereof, intended for sale to a buyer, wholly or partly, where the amount charged from the recipient of service includes the value of land or undivided share of land, as the case may be, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier”, shall be substituted. Said Notification has been come into force w.e.f 20th October,2023.

    CBIC vide Notification No. 16/2023-Central Tax (Rate) dated 19th October,2023 made amendment to Notification 17/2017-CT(Rate) dated 28th June,2017 (categories of services the tax on intra State supplies of which shall be paid by the ECO)

    • In clause (i), for the words “omnibus or any other motor vehicle”, the words “or any other motor vehicle except omnibus” shall be substituted;
      1. services by way of transportation of passengers by a radio-taxi, motorcab, maxi cab motor cycle, or any other motor vehicle except omnibus.
    • Following New Entry (ia) has been inserted :

      • (ia) services by way of transportation of passengers by an omnibus except where the person supplying such service through electronic commerce operator is a company.”;

    • in the Explanation, after item (c), the following item shall be inserted, namely, -

      • “(d) “Company” has the same meaning as assigned to it in clause (20) of section 2 of the Companies Act, 2013(18 of 2013).”.

    • Thus, if the Service by transportation of passenger by omnibus is provided by company, the ECO shall not be liable to pay tax under 9(5) of CGST Act, 2017

    • Said Notification shall come into force w.e.f 20th October,2023

    CBIC vide Notification 17/2023-Central Tax (Rate) dated 19th October,2023 has inserted following new Entries w.e.f 20th October,2023

    in Schedule I-2.5%

    “92A

    1703

    Molasses

    “96A.

    1901

    Food preparation of millet flour, in powder form, containing at least 70% millets by weight, pre-packaged and labelled

    in Schedule III – 9%,

    25A.

    2207 10 12

    Spirits for industrial use”;

    In Schedule-IV 14% following entry shall be omitted

    1

    1703

    Molasses

    Consequently, In Schedule III – 9%, Against S. No. 13, in column (3), for the words and figures “of heading 1905”, the words and figures “of heading 1905; food preparation of millet flour, in powder form, containing at least 70% millets by weight, pre-packaged and labelled ” shall be substituted;

    CBIC vide Notification 18/2023-CT(Rate) dated 19th October,2023 said entry has been inserted in Notification No. 2/2017-CT(Rate) dated 28th June,2017 which grant Exemption to intra state supplies of goods from Central tax leviable u/s 9. The Said Notification has been come into force w.e.f 20th October,2023.

    94A.

    1901

    Food preparation of millet flour, in powder form, containing at least 70% millets by weight, other than pre-packaged and labelled”.

    CBIC vide Notification 20/2023-CT (Rate) dated 19th October,2023 following new entry has been inserted in Notification 05/2017-CT(Rate) dated 28th June,2023 (no refund of unutilised input tax credit shall be allowed, where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on the output supplies of such goods)

    6AA.

    5605

    Imitation zari thread or yarn made out of Metallised polyester film /plastic film;

    Explanation: This entry shall apply for refund of input tax credit only on polyester film /plastic film”;

    CBIC vide Notification 02/2023-IGST dated 29th September,2023 notifies that provisions of IGST Act(Amendment ),2023 has come into force w.e.f 1st October,2023.

    CBIC vide Notification 03/2023-IGST dated 29th September,2023 notifies that integrated tax shall be levied and collected under 5(1) of the said Act on all inter state supply of online money gaming. The Said Notification has been come into force w.e.f 1st October,2023.

    CBIC vide Notification 04/2023-IGST dated 29th September,2023 notifies the Principal Commissioner of Central Tax, Bengaluru West and all the officers subordinate to him as the officers empowered to grant registration in case of supply of online money gaming provided or agreed to be provided by a person located in non-taxable territory and received by a person in India. The Said Notification has been come into force w.e.f 1st October,2023.

    CBIC vide Notification 05/2023-IGST dated 26th October,2023 has amended principal Notification 01/2023-IT dated 31st July,2023 which provide that Goods or services (except few specified) may be exported on payment of integrated tax and on which the supplier of such goods or services may claim the refund of tax so paid.

    Before the amendment, only exporter were allowed to export goods/service on payment of integrated tax and claim refund of tax so paid.

    However, w.e.f. 1st Oct, 2023, all supplier who supplies goods/service to SEZ or developer of SEZ shall be eligible for payment of IGST and claim refund of tax so paid