TaxTMI 
TaxTMI 
Clarifications regarding applicable GST rates & exemptions on certain services
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....ite launch services provided by NSIL, 5. Overloading charges at toll plaza, 6. Renting of vehicles by State Transport Undertakings and Local Authorities, 7. Services by way of grant of mineral exploration and mining rights 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 45rd 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 G.O. (Ms) No. 72 dated 29.06.2017, TN Notification No.II(2)/CTR/532(d-14)/2017, dated 29.6.2017 [Issue No. 202] :- '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 r....
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....ed by coaching institutions and NGOs under the central sector scheme of 'Scholarships for students with Disabilities" 5.1 Representations have been received seeking clarification regarding applicability of GST on free coaching services provided by coaching institutions and NGOS under the central scheme 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 G.O. (Ms) No. 73 dated 29.06.2017, TN Notification No.II (2)/CTR/532(d-15)/2017, dated 29.6.2017 [Issue No.202], 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, ....
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....e Transport Undertakings and Local Authorities 8.1 Representations have been received seeking clarification regarding eligibility of the service of renting of vehicles to State Transport Undertakings (STUs) and Local Authorities for exemption from GST under G.O. (Ms) No. 73 dated 29.06.2017, TN Notification No.II(2)/CTR/532(d-15)/2017, dated 29.6.2017 [Issue No. 202]. SI. No. 22 of this notification exempts "services by way of giving on hire (a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or (aa) to a local authority, an Electrically Operate 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 SI. No. 22 of G.O. (Ms) No. 73 dated 29.06.2017, TN Notification No.II(2)/CTR/532(d-15)/2017, dated 29.6.2017 [Issue No. 202] 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....
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....s applicable on supply of like goods involving transfer of title in goods". In certain other advance rulings, a view has been taken that grant of rights for mineral exploration and mining would be covered under heading 9991 and would attract GST at the rate of 18%. 9.2.1 AAAR, Odisha, on the other hand has ruled vide Order dated 5.11.2019 in the case of M/s Penguin Trading and Agencies Limited that grant of mining lease was taxable @ 18% prior to 01.01.2019. The Appellate Authority in this case observed that GST rate applicable against SI. No. 17 item (viii) of Notification No. 11/2017- Central Tax (Rate) and SI. No. 17 item (viii) of G.O. (Ms) No. 72 dated 29.06.2017, TN Notfn No.II(2)/CTR/532(d-14)/2017, dated 29.6.2017 [Issue No. 202] was not implementable. Unlike leasing or renting of 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 fu....
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....this activity / supply at standard rate of 18% 9.3.3 Accordingly, as recommended by the Council, it is clarified that even if the rate schedule did not specifically mention the service by way of grant of mining rights, during the period 1.7.2017 to 31.12.2018, it was taxable at 18% in view of principle laid down in the 14th meeting of the Council for residuary GST rate. Post, 1st January, 2019 no dispute remains as stated above. 10. Admission to indoor amusement parks having rides etc. 10.1 Representations have been received requesting for clarification regarding applicable rate of GST on services provided by Indoor Amusement Parks/Family Entertainment Centers, and scope of the word `amusement park' under entry 34(iii) of G.O. (Ms) No. 72 dated 29.06.2017, TN Notification No.II(2)/CTR/532(d-14)/2017, dated 29.6.2017 [Issue No. 202]. 10.2 Entry 34(iii) of G.O. (Ms) No. 72 dated 29.06.2017, TN Notification No. II(2)/CTR/532(d-14)/2017, dated 29.6.2017 [Issue No. 202], prior to 01.10.2021, prescribed 18% GST 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 ha....