Notification No. 2/2018- Central Tax (Rate) OF TABLE 3A
This query is : Resolved
15 August 2023
ONE OF MY CLAINT SUPPLY COMPOSITE SUPPLY TO CORPORATIN OF HAND PUMP MAINTENANCE SERVICE. IS HE EXEPTED UNDER Notification No. 2/2018- Central Tax (Rate) OF TABLE 3A ? IF YES SAC CODE ?
09 July 2024
Notification No. 2/2018-Central Tax (Rate) provides exemptions for composite supplies under certain conditions. To determine if your client supplying composite services to a corporation for hand pump maintenance service qualifies for exemption under this notification, we need to consider a few points:
1. **Nature of Service Provided:**
- The service provided by your client must meet the criteria specified in Notification No. 2/2018-Central Tax (Rate) to be eligible for exemption. Typically, services that involve a principal supply and ancillary supplies where the value of the ancillary supplies does not exceed 10% of the turnover of the preceding financial year are covered.
2. **Applicable SAC Code:**
- The applicable Service Accounting Code (SAC) for the service provided needs to be identified. SAC codes are used to classify services for GST purposes. For hand pump maintenance services, the SAC code would depend on the specific nature of the service provided (e.g., maintenance services, repair services, etc.).
3. **Exemption Criteria:**
- If the composite supply of services meets the exemption criteria under Notification No. 2/2018-Central Tax (Rate), then your client may be exempt from charging GST on such supplies. This exemption is conditional upon fulfilling the requirements specified in the notification.
### Steps to Determine Exemption:
- **Review Notification Details:** Carefully read through Notification No. 2/2018-Central Tax (Rate) to understand the conditions and exemptions provided for composite supplies.
- **Verify Service Criteria:** Ensure that the service provided by your client aligns with the conditions specified in the notification, particularly related to turnover thresholds and nature of supplies.
- **Identify SAC Code:** Use the appropriate SAC code for hand pump maintenance services. This can usually be found in the SAC code list provided by GST authorities.
### Conclusion:
To provide a precise answer, you would need to review the exact services provided by your client against the criteria outlined in Notification No. 2/2018-Central Tax (Rate). Additionally, identifying the correct SAC code for hand pump maintenance services will help in ensuring accurate GST compliance. If further clarification is needed, consulting with a GST expert or referring directly to GST authorities would be advisable.
1. **Nature of Service Provided:**
- The service provided by your client must meet the criteria specified in Notification No. 2/2018-Central Tax (Rate) to be eligible for exemption. Typically, services that involve a principal supply and ancillary supplies where the value of the ancillary supplies does not exceed 10% of the turnover of the preceding financial year are covered.
2. **Applicable SAC Code:**
- The applicable Service Accounting Code (SAC) for the service provided needs to be identified. SAC codes are used to classify services for GST purposes. For hand pump maintenance services, the SAC code would depend on the specific nature of the service provided (e.g., maintenance services, repair services, etc.).
3. **Exemption Criteria:**
- If the composite supply of services meets the exemption criteria under Notification No. 2/2018-Central Tax (Rate), then your client may be exempt from charging GST on such supplies. This exemption is conditional upon fulfilling the requirements specified in the notification.
### Steps to Determine Exemption:
- **Review Notification Details:** Carefully read through Notification No. 2/2018-Central Tax (Rate) to understand the conditions and exemptions provided for composite supplies.
- **Verify Service Criteria:** Ensure that the service provided by your client aligns with the conditions specified in the notification, particularly related to turnover thresholds and nature of supplies.
- **Identify SAC Code:** Use the appropriate SAC code for hand pump maintenance services. This can usually be found in the SAC code list provided by GST authorities.
### Conclusion:
To provide a precise answer, you would need to review the exact services provided by your client against the criteria outlined in Notification No. 2/2018-Central Tax (Rate). Additionally, identifying the correct SAC code for hand pump maintenance services will help in ensuring accurate GST compliance. If further clarification is needed, consulting with a GST expert or referring directly to GST authorities would be advisable.
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