TaxTMI 
TaxTMI 
Clarifications regarding applicable GST rates & exemptions on certain services.
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....attracted GST, 8. Admission to amusement parks having rides etc., 9. Services supplied by contract manufacture to brand owners or others for manufacture of alcoholic liquor for human consumption. 2. The issues have been examined by GST Council in the 45th meeting of the Council held on 17th September, 2021. The issue-wise clarifications are given below: 3. Services by cloud kitchens/central kitchens: 3.1 Representations have been received requesting for clarification regarding the classification and rate of GST on services rendered by Cloud kitchen or Central Kitchen. 3.2 The word 'restaurant service' is defined in Finance Department's Notification No. F.12(56)FD/Tax/2017-Pt-I-49 dated 29.06.2017 as below: - "'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." 3.3 The explanatory notes to the classification of service state that ....
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....e of "Scholarships for students with Disabilities" where entire expenditure is provided by Government to coaching institutions by way of grant in aid. 5.2 In this regard, it is to mention that entry 72 of Finance Department's notification No. F.12(56) FD/Tax/2017-Pt-I-50 dated 29.06.2017 exempts services provided to the Central Government, State Government, Union territory administration under any training programme for which total expenditure is borne by the Central Government, State Government, Union territory administration. 5.3 The scope of this entry is wide enough to cover coaching services provided by coaching institutions and NGOs under the central scheme of 'Scholarships for students with Disabilities" where total expenditure is borne by the Government by way of funding to institute providing such coaching. 5.4 Accordingly, as recommended by the GST Council, it is clarified that services provided by any institutions/ NGOs under the central scheme of 'Scholarships for students with Disabilities" where total expenditure is borne by the Government is covered under entry 72 of notification No. F.12(56) FD/ Tax/ 2017-Pt-I-50 dated 29.06.2017 and hence exemp....
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....rtaking, a motor vehicle meant to carry more than twelve passengers; or (aa) to a local authority, an electrically operated vehicle meant to carry more than twelve passengers". 8.2 This issue has arisen in the wake of ruling issued by an Authority for Advance Ruling that the entry at serial no. 22 of notification No. F.12(56)FD/Tax/2017-Pt-I-50 exempts services by way of giving on hire vehicles to a State Transport Undertaking or a local authority and not renting of vehicles to them. The ruling referred to certain case laws pertaining to erstwhile positive list based service tax regime. 8.3 It is relevant to note in this context that Schedule II of RGST Act, 2017 declares supply of any goods without transfer of title as supply of service even if right to use is transferred. Transfer of right to use has been declared as a supply of service [Schedule II, Entry 5(f) refers] 8.4 The issue was placed before the 45h GST Council Meeting held on 17.09.2021. As recommended by the GST Council, it is clarified that the expression "giving on hire" in serial no. 22 of the Notification No. F.12(56) FD/Tax/2017-Pt-I-50 dated 29.07.2021 includes renting of vehicles. Accordingly, servic....
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....f goods, there are no underlying goods in case of leasing of mining area. The rate prescribed for goods cannot be made applicable to leasing of mining area, which confers the right to extract and appropriate minerals. The mining lease by Government, not being a lease of any goods, cannot attract the rate applicable to sale of like goods. Appellate Authority for Advance Ruling, Odisha has further held that the amendment carried out vide Notification No. F.12(56) FD/ Tax/ 2017-Pt-III-138, dated 31.12.2018,which restricted the "same rate as applicable to supply of goods involving transfer of title in goods" only to leasing or renting of goods was to clarify the legislative intent as well as to resolve the unintended interpretation. It is a settled law that interpretation which defeats the intention of legislature cannot be adopted. It accordingly upheld that "licensing services for the right to use minerals including its exploration and evaluation" falling under service code 997337 were taxable @ 18% during 01.07.2017 to 31.12.2018. 9.2.2 It may be noted that the expression "same rate of tax as applicable on supply of like goods involving transfer of title in goods" applies in case....
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....T on the services by way of admission to amusement parks including theme parks, water parks, joy rides, merry-go rounds, go-carting and ballet. On the other hand, Entry No. 34(iiia) in Notification No. F.12(56)FD/Tax/2017-Pt-I-49 dated 29.06.2017 prescribed GST rate of 28% on the services by way of admission to entertainment events or access to amusement facilities including casinos, race club, any sporting event such as Indian Premier League and the like. 10.3 On the recommendations of the Council, it is clarified that 28% rate [entry 34 (iiia)] applies on admission to a place having casino or race club [even if it provides certain other activities] or admission to a sporting event like IPL. On the other hand, Entry 34 (iii), having a rate of 18%, covers all other cases of admission to amusement parks, or theme park etc or any place having joy rides, merry-go rounds, go-carting etc, whether indoor or outdoor, so long as no access is provided to a casino or race club. This clarification will also apply to Entries 34(iii) and 34(iiia) as they existed prior to their amendment w.e.f 01.10.2021. 10.4 The entries in question have been suitably amended vide notification No. F.12(1)....