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Key Highlights of GST Notifications applicable form 01-Oct-2019

1. Reverse charge

a. Renting of Motor vehicle Services provided by way of renting of a motor vehicle provided to a body corporate by any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business.

b. In case of Builder Now, reverse charge will be applicable on the goods Cement supplied by unregistered supplier to promoter without any condition or limit. Government has widened the applicability of reverse charge on cement supplied by unregistered supplier to promoters.

  1. Government has notified that special procedure prescribed for payment of taxes in case of supply of development right services shall not be applicable and will be rescinded for development right services supplied on or after April 1, 2019 –
  2. Manufacturers of aerated water would not be able to opt for composition scheme
  3. List of New Exemptions
    A. Supplies of Silver and Platinum by nominated agencies to registered persons under the Scheme for “Export against Supply by Nominated Agency”
    B. All goods supplied to Food & Agricultural Organization of the United Nations (FAO) for execution of specified projects
    C. Services provided by and to Fédération Internationale de Football Association (FIFA)
    D. Services by way of storage or warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee and tea

5. Major change in rates
Goods
Marine Fuel 0.5% will be at 5%
Wet grinder consisting of stone as a grinder will be at 5%
Woven and Non- Woven Bags and sacks of Polyethylene Polypropylene strips,whether laminated or not will be at 12%
Parts of railway or tramway locomotives, wagons, coaches, etc., classified under tariff heading 8601 to 8608 will be at 12%
Caffeinated Beverages will be at 28%

  1. New Rates for accommodation, restaurant and other services
    A. ‘Hotel accommodation’ having value of supply of a unit of accommodation above Rs. 1,000 but less than or equal to Rs.7,500 per unit per day or equivalent will be at 12%
    B. Restaurant services other than at ‘Specified premises’, will be at 5% ITC charged on goods and services used in supplying the service has not been taken
    C. Outdoor Catering or Composite supply of ‘outdoor catering’ together with renting of premises or supply of ‘outdoor catering’, at premises other than ‘specified premises’ provided by any person except-
    (a) suppliers providing ‘hotel accommodation’ at ‘specified premises’, or
    (b) suppliers located inv‘specified premises’ will be at 5%
    ITC charged on goods and services used in supplying the service has not been taken

D. Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both will be at 12%

E. Services by way of job work in relation to diamonds falling under chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) will be at 1.5%

F. Services by way of job work in relation to bus body building will be at 18%

G. Services by way of job work other than mentioned in the E and F will be at 12%