The GST Council’s 45th meeting was held on 17.09.2021 in Lucknow under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has inter-alia made the following recommendations relating to changes in GST rates on supply of services.
Major GST changes in relation to rates and scope of exemption on Services [w.e.f 1.10.2021 unless otherwise stated]
| No. | Description | From | To |
| 1. | Validity of GST exemption on transport of goods by vessel and air from India to outside India is extended upto 30.9.2022. | – | Nil |
| 2. | Services by way of grant of National Permit to goods carriages on payment of fee | 18% | Nil |
| 3. | Skill Training for which Government bears 75% or more of the expenditure [ presently exemption applies only if Govt funds 100%]. | 18% | Nil |
| 4. | Services related to AFC Women’s Asia Cup 2022. | 18% | Nil |
| 5. | Licensing services/ the right to broadcast and show original films, sound recordings, Radio and Television programmes [ to bring parity between distribution and licencing services] | 12% | 18% |
| 6. | Printing and reproduction services of recorded media where content is supplied by the publisher (to bring it on parity with Colour printing of images from film or digital media) | 12% | 18% |
| 7. | Exemption on leasing of rolling stock by IRFC to Indian Railways withdrawn. | ||
| 8. | E Commerce Operators are being made liable to pay tax on following services provided through them
|
||
| 9. | Certain relaxations have been made in conditions relating to IGST exemption relating to import of goods on lease, where GST is paid on the lease amount, so as to allow this exemption even if (i) such goods are transferred to a new lessee in India upon expiry or termination of lease; and (ii) the lessor located in SEZ pays GST under forward charge. | ||
Clarification in relation to GST rate on services:
- Coaching services to students provided by coaching institutions and NGOs under the central sector scheme of ‘Scholarships for students with Disabilities” is exempt from GST
- Services by cloud kitchens/central kitchens are covered under ‘restaurant service’, and attract 5% GST [ without ITC].
- Ice cream parlor sells already manufactured ice- cream. Such supply of ice cream by parlors would attract GST at the rate of 18%.
- Overloading charges at toll plaza are exempt from GST being akin to toll.
- The renting of vehicle by State Transport Undertakings and Local Authorities is covered by expression ‘giving on hire’ for the purposes of GST exemption
- The services by way of grant of mineral exploration and mining rights attracted GST rate of 18% w.e.f. 01.07.2017.
- Admission to amusement parks having rides etc. attracts GST rate of 18%. The GST rate of 28% applies only to admission to such facilities that have casinos etc.
- Alcoholic liquor for human consumption is not food and food products for the purpose of the entry prescribing 5% GST rate on job work services in relation to food and food products.
Thus, similar to goods we can see that in services also GST rates have been increased for media industry and rates have been reduced where government is involved.
We had also talked about auto population of GSTR 1 late fees in GSTR 3B. To read CLICK HERE and about Changes in GST rate for goods. To read CLICK HERE.
To read more about 45th GST council meeting CLICK HERE.
You can book phone consultation/ assistance online with expert as mentioned below:
To book ITR filing with experts CLICK ME.
To book phone consultation with experts for any Income tax related matters CLICK ME.
To book consultation for Faceless Assessment with experts CLICK ME.
To book phone consultation with experts for GST related matters CLICK ME.
To book general phone consultation with expert CLICK ME.
