TaxTMI 
TaxTMI 
Clarifications regarding applicability of GST on certain services
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....larifications, related to the following issues are being issued through this circular: i. GST exemption on the outward supplies made by the Ministry of Railways (Indian Railways). ii. GST exemption on the transactions between Special Purpose Vehicles (SPVs) and Ministry of Railways (Indian Railways). iii. Applicability of GST on the statutory collections made by the Real Estate Regulatory Authority (RERA) in accordance with the Real Estate (Regulation and Development ) Act, 2016. iv. Applicability of GST on the incentive amount shared by acquiring bank with other stakeholders in the digital payment ecosystem under the notified Incentive Scheme for promotion of RuPay Debit Cards and low value BHIM-UPI transactions. v. GST liability on the reinsurance of specified general and life insurance schemes. vi. GST liability on the reinsurance schemes for which total premium is paid by the Government. vii. Applicability of GST on retrocession services. viii. GST liability on certain accommodation services. 3. GST exemption on the outward supplies made by Ministry of Railways (Indian Railways). 3.1 Based on the requ....
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....ervices by SPVs to Ministry of Railways (Indian Railways) by way of allowing Indian Railways to use infrastructure built and owned by them during concession period against consideration and maintenance services supplied by Ministry of Railways (Indian Railways) to SPVs are taxable. 4.2 However, Ministry of Railways had brought out certain difficulties faced in implementation of the said recommendations of the 48th GST Council and matter was examined by the 53rd GST Council in its meeting held on 22nd June, 2024. 4.3 GST Council has recommended to exempt the supply of service by SPVs to Ministry of Railways (Indian Railways) by way of allowing Indian Railways to use the infrastructure built and owned by SPVs during the concession period against consideration and maintenance services supplied by Ministry of Railways (Indian Railways) to SPVs from GST. G.O.Ms.No. 96, Commercial Taxes and Registration (B1) Department, dated 22.08.2024 in Notification No. II(2)/CTR/785(a-3) /2024 dated 22.08.2024 published in Tamilnadu Government Extraordinary Gazette Issue No.272 has been issued in this regard. 4.4 The GST Council in its 53rd meeting has also recommended to regularize the peri....
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....u Government Extraordinary Gazette Issue no. 202 . 6. Applicability of GST on the incentive amount shared by acquiring banks with other stakeholders in the digital payment ecosystem under the notified Incentive Scheme for promotion of Rupay Debit Cards and low value BHIM-UPI transactions. 6.1 Representation has been received requesting for clarification on whether GST is applicable on the incentive amount shared by acquiring banks with other stakeholders in the digital payment ecosystem under the notified Incentive Scheme for promotion of Rupay Debit Cards and low value BHIM-UPI transactions. 6.2 Under the notified Incentive Scheme for promotion of Rupay Debit Cards and low value BHIM-UPI transactions, the Ministry of Electronics and Information Technology (MeitY) pays the acquiring banks an incentive as a percentage of the value of the transactions up to two thousand rupees. Applicability of GST on the incentive paid by the MeitY to acquiring banks under the notified incentive Scheme for promotion of Rupay Debit Cards and low value BHIM-UPI transactions was examined in the 48th GST Council meeting held on 17th December 2022 and based on the recommendations of the GST Coun....
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....nsurance schemes. 7.1 Representations have been received to either exempt or regularize the GST liability, for the period from 01.07.2017 to 24.01.2018, on reinsurance of specified general insurance and life insurance schemes, which are exempt from GST. 7.2 Certain Specified general insurance and life insurance schemes are exempt from GST under SI. Nos. 35 and 36 of G.O. (Ms) No. 73 dated 29.06.2017 in Notification No. II(2)/CTR/532(d-15)/2017 dated 29.06.2017 published in Tamilnadu Government Extraordinary Gazette Issue no. 202. Vide entry at SI. No. 36A of the said notification, reinsurance of the aforesaid exempted insurance schemes has also been exempted w.e.f. 25.01.2018. 7.3 GST Council in its 53rd meeting held on 22nd June, 2024 has recommended to regularize the GST liability on such reinsurance of exempt general insurance and life insurance schemes for the past period, i.e. from 01.07.2017 to 24.01.2018, on 'as is where is' basis. 7.4 Thus, as recommended by the GST Council, GST liability on the services by way of reinsurance of the insurance schemes specified in SI. Nos. 35 and 36 of G.O. (Ms) No. 73 dated 29.06.2017 in Notification No. II(2)/CTR/532(d-....
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....oss Border Re-insurer). Accordingly, the GST Council has recommended to clarify that reinsurance includes retrocession services. 9.3 Thus, as recommended by the GST Council, it is hereby clarified that the term 'reinsurance' as mentioned in SI. No. 36A of G.O. (Ms) No. 73 dated 29.06.2017 in Notification No. II(2)/CTR/532(d-15)/2017 dated 29.06.2017 published in Tamilnadu Government Extraordinary Gazette Issue no. 202 includes 'retrocession' services. 10. GST liability on certain accommodation services. 10.1 Representations have been received requesting to clarify whether service by way of hostel accommodation, service apartments/hotels booked for longer period is a service of renting of residential dwelling for use as residence and exempted under entry at notification No. 12 of G.O. (Ms) No. 73 dated 29.06.2017 in Notification No. II(2)/CTR/532(d-15)/2017 dated 29.06.2017 published in Tamilnadu Government Extraordinary Gazette Issue no. 202. Requests have also been received for GST exemption on hostels for poor and middle-class students run by charitable trusts. 10.2 The matter was placed before the GST Council in its 53rd meeting held on 22nd June, 202....