There are several changes proposed in GST rates on specified goods and services during the 37th GST Council meeting held on September 20, 2019.
The Central Government has now given effect to the recommendations of the GST Council vide various notifications dated September 30, 2019 and all such notifications, unless specifically mentioned otherwise, shall be effective from October 01, 2019.
Important highlights of all such notifications has been summarised for your easy digest:
Notification No. |
Gist of Amendments |
Amendment in rate of Goods and Services |
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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. The list of few goods wherein amendment has been brought are as under: -
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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 are as under:
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Exemption of Goods and Services |
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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%:
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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:
to inter-alia a business entity with an aggregate 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.
This Notification is effective from October 01, 2019. Similar Notifications are issued under UTGST and IGST Law. In addition, "Services provided by an intermediary when location of both supplier and recipient of goods is outside the taxable territory", subject to certain conditions, has been exempted by way of additional amendment in IGST notification. |
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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 location of both supplier and recipient of goods is outside the taxable territory". |
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Other Notifications: |
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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)" |
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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. |
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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. |
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The CBIC vide Notification No. 19/2019- (CT Rate) dated September 30, 2019 has exempted supply of goods for specified projects under Food and Agricultural Organisation of the United Nations. |
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The CBIC vide Notification No. 23/2019- (CT Rate) dated September 30, 2019 has put a retrospective sunset clause on 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 special procedure to be followed while determining time of supply in case of construction services against transfer of development rights. |
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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. |
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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:
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The CBIC vide Notification No. 24/2019- (CT Rate) dated September 30, 2019 has amended Notification No. 07/2019 - (CT Rate) dated the March 29, 2019 by amending the entry related to cement on which GST is leviable under Reverse Charge Mechanism. |
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Grant of 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, 2019, has 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. |
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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 a service i.e. location of the service recipient. |
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The CBIC vide Notification No. 02/2019- (Compensation Cess rate) dated September 30, 2019 has amended Notification No. 01/2017-(Compensation Cess |
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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. |