TaxTMI 
TaxTMI 
Clarifications regarding applicability of GST on certain services.
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....g clarifications are being issued to ensure uniformity in interpretation: 2. Clarification regarding the distinction between research & development and consultancy services based on a self-certification mechanism. 2.1. The GST Council, in its 54th meeting held on 09th September, 2024, recommended to exempt research and development services provided by Government Entities or research associations, universities, colleges or other institutions, notified under clauses (ii) or (iii) of sub-section (1) of section 35 of the Income Tax Act, 1961, against consideration received in the form of grants. The same has been exempted w.e.f. 10th October, 2024 vide Entry No. 44A of Notification No. 1136-F.T. dated 28.06.2017. In the said meeting, the ....
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....ablishment of a foreign shipping company from a related person or any of its establishment outside India, when made without consideration: 3.1 The GST Council in its 57th meeting has recommended to exempt import of services by an Indian establishment of a foreign shipping company from a related person or any of its establishment outside India, when made without consideration. Accordingly, this has been given effect from 01.11.2026 vide Notification No. 07/2026-Integrated Tax (Rate) dated 27.10.2026. 3.2 The Council further recommended to regularize the payment of GST on import of services by an Indian establishment of a foreign shipping company from a related person or any of its establishment outside India, when made without consider....
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....leasing service. 4.4 It is hereby clarified that recovery of such statutory and ancillary expenses form part of the value of the composite supply of the leasing service and shall be taxed at the rate applicable to the leasing service of motor vehicle. 5. Whether Telecom Regulatory Authority of India (TRAI) is "Government" under GST law? 5.1 Representation has been received from Telecom Regulatory Authority of India (TRAI) seeking clarification whether TRAI is covered within the meaning of "Government" under GST law on the grounds that TRAI is a statutory authority established under the Telecom Regulatory Authority of India Act, 1997 to perform certain statutory regulatory functions and is substantially funded through Government gra....
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....ved that in certain cases, demands have been raised on such notional amount/interest on the ground that FTP represents a financial service provided by the Head Office to its branches since the Head Office and its branches are distinct persons under section 25(4) of the WBGST Act. 6.3 The matter has been examined. Under the FTP mechanism, the Head Office notionally pools funds from deposit-mobilising branches and allocates such funds to lending branches at an internally determined price linked to the relevant product or tenure. Such notional amount represents the cost of funds and is akin to interest. Further, the definition of "interest" in Notification No. 1136-F.T. dated 28.06.2017 covers interest payable in any manner in respect of mo....