The CBIC issued various Notifications dated 19th October, 2023 relating to Rate on goods and /or services, Exemption on goods and/ or services, Reverse charge mechanism to give effect to the recommendations of the 52nd GST Council Meeting held on 7th October, 2023.

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20.10.2023: CBIC ISSUED VARIOUS RATE NOTIFICATIONS TO GIVE EFFECT TO THE RECOMMENDATIONS OF THE 52ND GST COUNCIL MEETING

This Notifications are as under:

A. GST Rate of Services 

Vide Notification No. 12/2023-Central Tax (Rate), CBIC made amendment in NN.11/2017-Central Tax (Rate) dated 28.06.2017as last amended by NN. 06/2023-Central Tax (Rate) dated 26.07.2023,to provide the following 

Description of ServiceRatePresent conditionProposed condition
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.2.5Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of transporting passengers in a motor vehicle or renting of a motor vehicle), has not been taken.One addition condition has been inserted as under: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.
Renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient.2.5Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of transporting passengers in a motor vehicle or renting of a motor vehicle) has not been taken.One addition condition has been inserted as under: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.

The Notification shall be effective w.e.f. 20.10.2023

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/10/12-2023-CTR-eng.pdf

B. GST Exemption on Services 

Vide Notification No. 13/2023-Central Tax (Rate), CBIC made amendment in NN.12/2017-Central Tax (Rate) dated 28.06.2017as last amended by NN. 07/2023-Central Tax (Rate) dated 26.07.2023,to provide as under:

1) A new Entry has been inserted to include “Services provided to a Governmental Authority by way of (a) water supply; (b) public health; (c) sanitation conservancy; (d) solid waste management; and (e) slum improvement and upgradation”

2) To withdraw exemption on “Services by the Ministry of Railways (Indian Railways)”.

The Notification shall be effective w.e.f. 20.10.2023

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/10/13-2023-CTR-eng.pdf

C. Reverse Charge Mechanism on Services 

Vide Notification No. 14/2023-Central Tax (Rate), CBIC made amendment in NN.13/2017-Central Tax (Rate) dated 28.06.2017as last amended by NN. 08/2023-Central Tax (Rate) dated 26.07.2023, to include Supply of all services by Indian Railways shall be taxed under Forward Charge Mechanism to enable them to avail ITC. This will reduce the cost for Indian Railways.

The Notification shall be effective w.e.f. 20.10.2023

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/10/14-2023-CTR-eng.pdf

D. Restriction on Refund of unutilized ITC 

Vide Notification No. 15/2023-Central Tax (Rate), CBIC made amendment in NN.15/2017-Central Tax (Rate) dated 28.06.2017, to provide that no refund of unutilised input tax credit shall be allowed under section 54(3) in case of supply of services 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.

The Notification shall be effective w.e.f. 20.10.2023

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/10/15-2023-CTR-eng.pdf

E. Payment of tax by E-commerce Operator

Vide Notification No. 16/2023-Central Tax (Rate), CBIC made amendment in NN.17/2017-Central Tax (Rate) dated 28.06.2017, last amended by Notification No. 17/2021 -Central Tax (Rate) dated 18.11.2021, to impose the condition that in case of Services by way of transportation of passenger by Omnibus, the tax on intra -state supplies of which shall be paid by the E-commerce operator, only where the person supplying such service through E-Commerce Operator is not a Company.

The Notification shall be effective w.e.f. 20.10.2023

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/10/16-2023-CTR-eng.pdf

F. GST rate on goods

Vide Notification No. 17/2023-Central Tax (Rate), CBIC made amendment in NN.01/2017-Central Tax (Rate) dated 28.06.2017, last amended by Notification No. 11/2023 -Central Tax (Rate) dated 29.09.2023, to provide as under:

Sr. No. Description Rate
1. Food preparation of millet flour in powder form, containing at least 70% millets by weight18%  TO 5%- – if sold pre-packaged and labelled Nil – if sold otherwise
2. Molasses28% – 5%
3.Spirits for industrial use18%

The Notification shall be effective w.e.f. 20.10.2023

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/10/17-2023-CTR-eng.pdf

G. GST exemption on goods

Vide Notification No. 18/2023-Central Tax (Rate), CBIC made amendment in NN.02/2017-Central Tax (Rate) dated 28.06.2017, last amended by Notification No. 04/2023 -Central Tax (Rate) dated 28.02.2023, to provide exemption from GST on Food preparation of millet flour, in powder form, containing at least 70% millets by weight, other than pre-packaged and labelled.

The Notification shall be effective w.e.f. 20.10.2023

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/10/18-2023-CTR-eng.pdf

H. Reverse Charge Mechanism on goods

Vide Notification No. 19/2023-Central Tax (Rate), CBIC made amendment in NN.04/2017-Central Tax (Rate) dated 28.06.2017, last amended by Notification No. 14/2022 -Central Tax (Rate) dated 30.12.2022, to provide that Supply of all goods by Indian Railways shall be taxed under Forward Charge Mechanism to enable them to avail ITC. This will reduce the cost for Indian Railways.

The Notification shall be effective w.e.f. 20.10.2023

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/10/19-2023-CTR-eng.pdf

I. Refund on Inverted Duty Structure 

Vide Notification No. 20/2023-Central Tax (Rate), CBIC made amendment in NN.05/2017-Central Tax (Rate) dated 28.06.2017, last amended by Notification No. 09/2022 -Central Tax (Rate) dated 13.07.2022, to provide that 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 (other than nil rated or fully exempt supplies),in respect of “Imitation zari thread or yarn made out of Metallised polyester film /plastic film”. This entry shall apply for refund of input tax credit only on polyester film /plastic film.

The Notification shall be effective w.e.f. 20.10.2023

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/10/20-2023-CTR-eng.pdf

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