-By CA Vipul Khandhar
- GST New Rate & Changes will come into effect from 18th July 2022 subject to CBIC Notification:
|Description of goods or services||Old Rate||New Rate|
|Solar water heaters and systems||5%||12%|
|Prepared or finished leather or chamois leather or composition leathers||5%||12%|
|Job work for processing of hides, skins, leather, making of leather products including footwear, and clay brick manufacturing||5%||12%|
|Earthwork works contracts and sub-contracts to the Central and state governments, Union Territories and local authorities||5%||12%|
|Pawan Chakki being air-based atta chakki, wet grinder, cleaning, sorting or grading machines for seeds and grain pulses, and milling machines or cereal making machines, etc;||5%||18%|
|Ink for drawing, printing, and writing||12%||18%|
|Knives with paper knives, cutting blades, pencil sharpeners and its blades, skimmers, cake-servers, spoons, forks, ladles, etc||12%||18%|
|Centrifugal pumps, submersible pumps deep tube-well turbine pumps, bicycle pumps that are power-driven mainly for handling water||12%||18%|
|Milking machines and dairy machinery, cleaning, sorting or grading machines and its parts for eggs, fruit or other agri produce||12%||18%|
|Lights and fixture, LED lamps, their metal printed circuits board||12%||18%|
|Marking out and drawing instruments||12%||18%|
|Services by foreman to chit fund||12%||18%|
|Works contract for railways, metro, roads, bridges, effluent treatment plant, crematorium, etc.||12%||18%|
|Works contract and sub-contract to the Central and state governments, local authorities for canals, dams, pipelines, plants for water supply, historical monuments, educational institutions, hospitals, etc||12%||18%|
|Cut and Polished diamonds||0.25%||1.50%|
|Tetra Pack (Aseptic Packaging Paper)||12%||18%|
|Tar (From coal, or coal gasification plants, or producer gas plants and coke oven plants)||5%/18%||18%|
|Import of tablets called Diethylcarbamazine (DEC) free of cost for National Filariasis Elimination Programme (IGST)||5%||Nil|
|Import of particular defence items by private businesses or suppliers for end-consumption of Defence (IGST)||Applicable rates||Nil|
|Orthopedic appliances such as intraocular lens, artificial parts of the body, splints and other fracture appliances, other appliances which are worn or carried, or body implants, to compensate for a defect or disability||12%||5%|
|Transport of goods and passengers by ropeways (with ITC of services)||18%||5%|
|Renting of truck or goods carriage including the fuel cost||18%||12%|
|Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed||Nil||12%|
|Cheques, lose or in book form||Nil||18%|
|Parts of goods of heading 8801||Nil||18%|
|Air transportation of passengers to and from north-eastern states and Bagdogra now restricted to economy class||Nil||Condition added|
|Transportation by rail or a vessel of railway equipment and material, storage or warehousing of commodities attracting tax such as copra, nuts, spices, jaggery, cotton, etc, fumigation in a warehouse of agri produce, services by RBI, IRDA, SEBI, FSSAI, and GSTN, renting of residential dwelling to GST-registered businesses, and services by the cord blood banks for preserving stem cells||Nil||Applicable rate|
|Room rent (excluding ICU) exceeding Rs.5,000 per patient day taxed without ITC||Nil||5%|
|Common bio-medical waste treatment facilities for treating or disposing biomedical waste shall be taxed with availability of ITC, like CETPs||Nil||12%|
|Hotel accommodation priced up to Rs.1,000 per day||Nil||12%|
|Training or coaching in recreational activities on arts or culture, or sports other than by individuals||Nil||Applicable rate|
|Earlier partially exempted, now withdrawn|
|Petroleum/ Coal bed methane||5%||12%|
- Other Recommendations In 43rd GST Council Meeting:
- All taxable service of Department of Posts would be subject to forward charge. Hitherto certain taxable services of Department of post were taxed on reverse charge basis.
- Goods transport agency (GTA) is being given option to pay GST at 5% or 12% under forward charge; option to be exercised at the beginning of Financial Year. RCM option to continue.
- Service provided by Indian Tour operator to a foreign resident for a tour partially in India and partially outside India is to be subject to tax proportionate to the tour conducted in India for such foreign tourist subject to conditions that this concession does not exceed half of tour duration.
- Waiver of requirement of mandatory registration under section 24(ix) of CGST Act for person supplying goods through E-Commerce Operators, subject to conditions (not allowed to sale good in inter-state).
- Composition taxpayers would be allowed to make intra-State supply through e-commerce operators subject to certain conditions.
- Amendment in formula prescribed in sub-rule (5) of rule 89 of CGST Rules, 2017 for calculation of refund of unutilized Input Tax Credit on account of inverted rated structure.
- Amendment in CGST Rules for handling of pending IGST refund claims.
- A new FORM GST PMT-03A for re-credit of amount in electronic credit ledger. Retrospective Amendment in 50(3), 49(1) to be notified. GSTR-4 due date extended till 28-07-2022 and CMP -08 for Q1 FY 2022-23 till 31-07-2022
- Present exemption of IGST on import of goods under AA/EPCG/EOU scheme to be continued.
- Exemption from filing annual return in FORM GSTR-9/9A for FY 2021-22 to be provided to taxpayers having AATO up to Rs. 2 crores.
- No ITC reversal on Sale of MEIS Scrips.
- UPI & IMPS to be provided as an additional mode for payment of GST
- Provision of Automatic Revocation of Registration post Filing of GST Returns.
- Proposal for comprehensive changes in FORM GSTR-3B to be placed in public domain for seeking inputs/suggestions of the stakeholders.
- Time period from 01-03-2020 to 28-02-2022 to be excluded from calculation of the limitation period for filing refund claim by an applicant under section 54 and 55 of CGST Act, as well as for issuance of demand/ order (by proper officer) in respect of erroneous refunds under section 73 of CGST Act.
- Limitation under section 73 for FY 2017-18 for issuance of order in respect of other demands linked with due date of annual return, to be extended till 30th September, 2023.
- Recent AAR & Judicial Decisions:-
(i) AAR On No GST on reimbursement received by industry partner for stipend paid to students:
(Applicant – 2 Coms Foundation)
We find that the applicant, as a NEEM facilitator, is to identify and provide/enrol trainees to the Industry Partners for which they would charge and receive a fixed administrative fee per trainee per month on which they would also discharge GST. The applicant, in lieu of agreements with the industry partners, prepare monthly attendance record of the trainees, processes stipends of the trainees, makes payment of stipend to the trainees and discharge all functions & duties as mandated to be performed as a facilitator under NEEM Regulations including preparation and submission of monthly invoice relating to payment of stipend. Regarding the issue in respect of stipend paid to the trainees by the applicant, it has been submitted by the applicant that the concerned Industry Partners will provide training to the trainees and are required to pay stipend to the trainees as per the NEEM Regulations. Even though, it is seen that the services will be provided by the trainees to the Industry Partners, for which stipend is mandated to be paid to the trainees by the Industry Partners, this stipend is not directly paid to the trainees by the said Industry Partners but will be routed through the applicant as per the NEEM Regulations. The entire amounts received as stipend from the Industry Partners will be paid to the trainees without any amount being retained. Thus, the applicant is only acting as an intermediary in collecting the stipend from the Industry Partners and then disbursing the same to the trainees in full without making any deductions from the stipend before disbursement to the trainees. The applicant is only a conduit for the payment of stipend and the actual service is supplied by the trainees to the Industry Partners against which stipend is payable. The amount of stipend received by the applicant from the Industry Partners and paid in full to the trainees is not taxable at the hands of the applicant. Hence, in view of the submissions made by the applicant and also in agreement with the observations made by the jurisdictional officer, it is held that the stipend paid by the Industry Partners to the applicant to be further paid to the trainees in full does not attract GST and is not required to be added to the taxable value. In a similar case of M/s Yashaswi Academy for Skills as well as M/s Patle Eduskills Foundation, this Authority has held that the reimbursement by Industry Partner to the applicant, of the stipend paid to the trainees, does not attract tax under the GST Act. Since the matters in the Yashaswi Academy case as well as the Patle Eduskills Foundation case decided by this authority are very similar to the facts of the subject case, we have no reason to deviate from our ruling given in the said cases, which are also applicable in the subject case.
This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.