GIST OF NOTIFICATIONS ISSUED ON 30th SEPTEMBER, 2019

CBIC has issued various rate notifications, to give legal effect to the decisions taken in the 37^th GST council meet conducted on 20^th September, 2019. Below mentioned is the gist of the rate notifications issued on 30^th September, 2019 which shall be applicable w.e.f. 01^st October, 2019.

NN.14/2019- Central Tax-Rate (Corresponding NN. 14/2019-Integrated Tax-Rate)

• Increase in GST rate on caffeinated beverages to 28% (14% CGST+14% SGST) instead of 18% (9% CGST+9% SGST).

• Petrol, LPG or CNG driven vehicles of engine capacity not exceeding 1200 cc and Diesel driven vehicles of engine capacity not exceeding 1500 cc both of whose lengths not exceeding 4000 mm, for persons with orthopedic physical disability shall be taxable at 18% (9% CGST+9% SGST) subject to certification conditions.

• Precious stones (other than diamonds) and semi-precious stones, whether or not worked or graded but not strung, mounted or set; ungraded precious stones (other than diamonds) and semi-precious stones, temporarily strung for convenience of transport.

• Woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of a kind used for packing of goods with HSN 3923 or 6305 shall be taxed at the rate of 12% (6% CGST+6% SGST)

 NN. 2/2019-Compensation Cess-Rate

• Cess on Petrol, LPG or CNG driven vehicles of engine capacity not exceeding 1200 cc and Diesel driven vehicles of engine capacity not exceeding 1500 cc both of whose lengths not exceeding 4000 mm, for persons with orthopedic physical disability shall be NIL subject to certification conditions.

• Cess at the rate of 12% shall be applicable on Caffeinated Beverages.

NN. 20/2019- Central Tax-Rate (Corresponding NN. 19/2019-Integrated Tax-Rate)

• Supply of “restaurant service” other than at “specified premises‟ shall be taxable at the rate of 5% (2.5% CGST+2.5% SGST) with no ITC.

• Supply of “outdoor catering”, at premises other than “specified premises” provided by any person other than suppliers providing “hotel accommodation” at “specified premises”, or suppliers located in “specified premises” shall be taxable at the rate of 5% (2.5% CGST+2.5% SGST) with no ITC.

• Composite supply of “outdoor catering‟ together with renting of premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) at premises other than “specified premises” provided by any person other than suppliers providing “hotel accommodation” at “specified premises” or suppliers located in “specified premises” shall be taxable at the rate of 5% (2.5% CGST+2.5% SGST) with no ITC.

• Below mentioned services shall be taxable at the rate of 18% (9% CGST+9% SGST) :-

a.Supply of “restaurant service” at “specified premises”.

b. Supply of “hotel accommodation‟ having value of supply of a unit of accommodation above INR 7,500 per unit per day or equivalent.

c. Supply of “outdoor catering‟, provided by suppliers providing “hotel accommodation” at “specified premises”, or suppliers located in “specified premises”.

d. Composite supply of “outdoor catering” together with renting of premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) provided by suppliers providing “hotel accommodation” at “specified premises”, or suppliers located in “specified premises”.

• Explanation’s inserted:-

a.“Restaurant service‟ means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied.

b.“Outdoor catering‟ means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, at Exhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event based and occasional in nature.

c. “Hotel accommodation‟ means supply, by way of accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes including the supply of time share usage rights by way of accommodation.

d.“Specified premises” means premises providing “hotel accommodation” services having declared tariff of any unit of accommodation above INR 7,500 per unit per day or equivalent. 

NN. 21 /2019- Central Tax-Rate (Corresponding NN. 20 /2019- Integrated Tax-Rate)

Extension of exemption of Services by way of transportation of goods by an aircraft or vessel from customs station of clearance in India to a place outside India from 30th day of September, 2019 till 30th day of September, 2020.

NN. 22 /2019- Central Tax-Rate (Corresponding NN. 21/2019-Integrated Tax-Rate)

• Compulsion to pay GST on RCM for Services by an author by way of transfer or permitting the use or enjoyment of a copyright to the publisher is now only if the author is unregistered.

Registered author has been given an option to pay GST under forward charge in accordance with Section 9 (1) of the CGST Act with certain conditions.

• GST under RCM shall be paid by the body corporate for Services received by way of renting of a motor vehicle from any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with ITC only of input service in the same line of business.

• GST under RCM for Services by way of lending of securities under Securities Lending Scheme shall be paid by the person who borrows the securities under the Scheme from the Lender i.e. a person who deposits the securities registered in his name or in the name of any other person duly authorized on his behalf with an approved intermediary for the purpose of lending under the Scheme of SEBI.

NN. 25/2019-Central Tax –Rate (Corresponding NN. 24/2019-Integrated Tax-Rate)

Exercising the powers conferred by sub-section (2) of section 7 of the CGST Act, 2017 transactions undertaken by the State Governments by way of “Service of grant of alcoholic liquor license, against consideration in the form of license fee or application fee” shall be treated neither as a supply of goods nor a supply of service.

 NN. 20 /2019- Integrated Tax-Rate

Services provided by an intermediary when location of both supplier and recipient of goods is outside the taxable territory shall be exempt provided documents shall be maintained for the minimum period of five years.