IGST exemption on imported royalties and license fees to extent of customs duties paid on declared consideration.
Exempts IGST on specified imported services to the extent of the aggregate customs duties leviable on consideration declared as royalties and license fees included in the transaction value under the Customs Valuation Rules, where the appropriate customs duties have been paid on that declared portion.

GST rate amendments reclassify and reallocate specified goods across rate schedules, altering tariff treatment and product-specific taxation.
Amendments to the principal notification under the Central Goods and Services Tax Act revise multiple rate Schedules by inserting, substituting and omitting entries to reclassify specified goods. Key changes add tamarind kernel powder, mehendi paste in cones, rice bran, household LPG entries, bio-pesticides, biodiesel, sugar boiled confectionery, drinking water in 20-litre bottles, irrigation and spraying equipment, cigarette filter rods, bamboo joinery, sanitary ware, and reclassify precious and semi-precious stones and imitation jewellery, while substituting and omitting several earlier schedule entries.

GST rate amendments expand and revise taxable classifications, adding and substituting entries across multiple schedules.
The notification amends the Karnataka SGST schedule entries by inserting, substituting and omitting tariff lines and descriptive provisos across multiple rate Schedules (2.5%, 6%, 9%, 14%, 1.5%, 0.125%), adding specific commodities and exceptions-including agricultural and allied inputs, fuels for household supply, scientific instruments for launch vehicles, bio-pesticides, biodiesel, wooden building joinery, irrigation equipment and bio-fuel buses-and thereby adjusts taxable classifications and carve-outs.

Tax exemption for State share of profit petroleum excludes State tax on consideration for exploration and mining leases.
Exempts from State tax the intra State supply of services by way of grant of license or lease to explore or mine petroleum crude or natural gas to the extent the consideration paid to the State Government constitutes its share of profit petroleum as defined in the contract between the State Government and the contractor.

Tax exemption for profit petroleum share: state tax not leviable on Central Government's contractual consideration for exploration leases.
Exempts from state tax intra State supplies of services by way of grant of licence or lease to explore or mine petroleum crude or natural gas to the extent of state tax leviable on the consideration paid to the Central Government as the Central Government's share of profit petroleum as defined in the contract entered into by the Central Government.

UTGST exemption for license or lease services to explore or mine petroleum where consideration is Central Government's share of profit petroleum.
The Central Government exempts from Union territory tax the intra State supply of services by way of grant of license or lease to explore or mine petroleum crude or natural gas to the extent the tax is leviable on the consideration paid to the Central Government that is defined in the contract as the Central Government's share of profit petroleum.

Exemption for profit petroleum: CGST does not apply to Central Government's contractual share paid under petroleum exploration leases.
Exempts from central tax the intra State supply of services by way of grant of license or lease to explore or mine petroleum crude or natural gas where the consideration paid to the Central Government is characterized in the contract as the Central Government's share of profit petroleum, removing CGST liability on that specific contractual form of consideration.

Exemption of IGST on Central Government's share of profit petroleum removes integrated tax on consideration under exploration/mining leases.
Exempts from integrated tax the Central Government's share of profit petroleum paid as consideration under contracts granting licenses or leases to explore for or mine petroleum crude or natural gas, applying to the inter State supply of services by way of such grants and limited to the amount defined in the contract as the Central Government's share of profit petroleum.

Customs amendment inserts tariff entries for satellites and launch vehicle inputs, adjusting customs duty treatment accordingly
The Government amends Notification No.50/2017 Customs by inserting serial 539 to cover satellites, payloads and ground testing equipment with Nil entries in the duty columns subject to condition 78, and by inserting serial 539A to cover scientific and technical instruments, parts, consumables and related items required for launch vehicles and satellites with the concessional duty entries indicated in the table, also subject to condition 78.

Exemption for State tax on Central Government's share of profit petroleum in intra State exploration and mining leases provided.
Exemption from State tax is granted for intra State supplies of services by way of grant of licence or lease to explore or mine petroleum crude or natural gas, limited to the portion of State tax leviable on the consideration paid to the Central Government described as the Central Government's share of profit petroleum as defined in the relevant contract.

Liability to pay central tax arises on transfer of possession under conveyance when development rights or construction service form consideration.
For supplies where development rights and construction services are exchanged as consideration, liability to pay central tax arises when the developer, builder or construction company transfers possession or the right in the constructed complex, building or civil structure to the person supplying development rights, evidenced by a conveyance deed or similar instrument such as an allotment letter.

Tax liability on construction-for-development-rights arises when possession or right is transferred by conveyance or allotment letter.
Notification designates registered persons exchanging development rights and construction services as specified classes and fixes State tax liability to arise when the developer or transferee transfers possession or the right in the constructed complex, building or civil structure to the person supplying the development rights by executing a conveyance deed or similar instrument such as an allotment letter.

Tax liability timing for construction-for-development-rights: liability arises when possession or right in the constructed property is transferred.
Registered persons supplying development rights in exchange for construction services, and those supplying construction services in exchange for development rights, are subject to a special rule: the liability to pay central tax on such supplies (where consideration is received as construction service or development rights) arises when the developer, builder or construction company transfers possession or the right in the constructed complex, building or civil structure to the supplier of development rights by executing a conveyance deed or similar instrument.

Timing of UTGST liability: tax arises when property possession or rights are conveyed to the supplier of development rights.
The notification treats suppliers exchanging development rights for construction services (and vice versa) as subject to a timing rule: UT tax liability arises when the developer or builder transfers possession or rights in the constructed property to the supplier of development rights by executing a conveyance deed, allotment letter or similar instrument.

Integrated tax liability timing: IGST on development-rights versus construction-service exchanges arises on transfer of possession by conveyance.
Notification prescribes that where supply involves exchange between development rights and construction services, the liability to pay integrated tax on such supplies arises when the developer or builder transfers possession or the right in the constructed property to the person supplying the development rights, as evidenced by a conveyance deed, allotment letter or similar instrument.

Timing of tax liability: State tax arises when possession or rights in the constructed property are transferred by conveyance.
The notification designates registered persons exchanging development rights and construction services and stipulates that the liability to pay State tax on such supplies arises when the developer or builder transfers possession or the right in the constructed complex, building or civil structure to the supplier of development rights by executing a conveyance deed or similar instrument (for example, an allotment letter).

Government renting of immovable property: notification specifies supply treatment when recipient is a registered taxable person.
The notification inserts a new entry treating services supplied by the Central Government, State Government, Union Territory or local authority by way of renting immovable property to any person registered under the Central Goods and Services Tax Act, 2017, specifying supplier and recipient classes. It also inserts a definition stating that "insurance agent" has the meaning assigned in clause (10) of section 2 of the Insurance Act, 1938.

Renting of immovable property by government now included in Maharashtra GST rate notification for supplies to registered persons.
Amendment inserts a new serial entry in the State Tax (Rate) notification covering services supplied by Central Government, State Government, Union territory or Local authority by way of renting of immovable property to any person registered under the Maharashtra Goods and Services Tax Act, 2017; and adds an Explanation defining "insurance agent" as per clause (10) of section 2 of the Insurance Act, 1938.

Government renting of immovable property to registered persons specified as taxable under union territory GST notification.
Inserts entry 5A into the Union Territory Tax (Rate) notification to specify that services consisting of renting of immovable property supplied by the Central Government, State Government, Union territory or local authority to any person registered under the Central Goods and Services Tax Act, 2017 (read with clause (vi) of section 21 of the Union Territory Goods and Services Act, 2017) are a listed taxable entry; also adds an explanation defining "insurance agent" as per the Insurance Act, 1938.

Reverse Charge Mechanism applies to government renting of immovable property to registered persons under GST.
The notification inserts entry 6A prescribing that services supplied by the Central Government, State Government, Union territory or local authority by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017 are taxable under the Reverse Charge Mechanism, identifying supplier and recipient classes read with clause (v) of section 20 of the IGST Act, 2017.