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| Gist of notifications issued by CBIC effective from 18 July 2022 |
The below notifications shall be applicable with effect from 18 July 2022.
| Notification No. 03/2022 - Central Tax (Rate) |
GST rate rationalized on outward supplies of certain services with an objective to remove the Inverted Duty Structure majorly impacting transportation industry mainly attracting GST rate of 5% with a precondition that Input Tax Credit (ITC) is not claimed.
Also, changes in GST rates are notified in case of certain other services such as services by way of treatment or disposal of biomedical waste, services provided by a clinical establishment by way of providing room for charges exceeding INR 5000 per day to a person receiving health care services, Hotels charging upto INR 1000 per day for accommodation services to be taxed at 12% (earlier Nil rated), etc.
Crucial change notified in case of Goods Transport Agency (GTA) wherein options are given to GTA to file a declaration to discharge GST under the forward charge mechanism. Form of declaration has been prescribed in “Annexure V” to be submitted by GTA before their jurisdictional GST Authorities along with deadlines for filing the same as:
| Financial Year |
Due Date to file Annexure - V by GTA |
| 2022-23 |
On or before the 16 August 2022 |
| 2023-24 onwards |
On or before the 15 March of the preceding Financial Year |
| Notification No. 04/2022 - Central Tax (Rate) |
Withdrawal of GST Exemptions such as:
- Renting of a residential dwelling to business entities being registered persons.
- Services provided by RBI, IRDA, SEBI, FSSAI, GSTN, etc.
- Storage or warehousing of commodities that attract tax (nuts, spices, copra, jaggery, cotton, etc.).
- Tour operator services to the extent performed in India.
Exemption for Transportation of passengers by air in economy class for journey embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal.
| Notification No. 05/2022 - Central Tax (Rate) |
Introducing option for GTA to pay tax under the forward charge at 5% (without ITC) or 12% (with ITC) and GTA to issue Tax Invoice. Furthermore, GTA should give a declaration on the tax invoice that, "I/we have taken registration under the CGST Act, 2017 and have exercised the option to pay tax on services of GTA in relation to transport of goods supplied by us during the Financial Year _____ under the forward charge."
Our Comments
If the following conditions have been satisfied, then there is no requirement to pay GST under RCM by the recipient in case of transportation of goods by GTA:
- Supplier has taken registration under CGST Act, 2017 and exercised the option to pay tax on the service of GTA in relation to transport of goods supplied by him under the forward charge: and
- Supplier has issued a tax invoice to the recipient charging GST at the applicable rates and has made a declaration as prescribed - on such invoice issued by him.
Department of Posts made liable to discharge GST under the forward charge in respect of all taxable services (currently, only a few services are liable to GST, and that too under Reverse Charge Mechanism [RCM]).
Services by way of renting a residential dwelling to a registered person by any person have been covered under RCM.
Our Comments
Registered business entities would be required to evaluate GST implications in cases where such services are availed and discharge GST if applicable under RCM with effect from 18 July 2022.
| Notification No. 06/2022 - Central Tax (Rate) |
Changes in GST rate on outward supplies of certain goods that are in pre-packaged and labeled form and introduction of a new CGST rate of 0.75% covering certain goods falling under tariffs 7102 and 7104.
| Notification No. 07/2022 - Central Tax (Rate) |
Notification seeks to give exemption for supply of goods from GST with an additional condition that goods are not in pre-packaged and labeled form. Some of the commodities include Curd, lassi, buttermilk, jaggery, murki, etc.
| Notification No. 08/2022 - Central Tax (Rate) |
Concessional CGST rate for goods supplied to Exploration and Production, such as petroleum/coal bed methane operation, has been revised from 2.5% to 6%.
| Notification No. 09/2022 - Central Tax (Rate) |
No refund of unutilized input tax credit under inverted duty structure shall be allowed in respect of agricultural produce like Soya bean, Ground nut oil, Olive Oil, Sunflower-seed, etc., subject to conditions.
| Notification No. 10/2022 - Central Tax (Rate) |
Notification seeks to provide for a concessional rate of 3% on the intra-state supply of Fly ash bricks, Fly ash aggregates, Fly ash blocks with a condition of not availing ITC.
| Notification No. 11/2022 - Central Tax (Rate) |
Notification seeks to rescind the concessional GST rate of 2.5% on scientific and technical equipment supplied to public-funded research institutions.
| Notification No. 15/2022 - Central Tax |
Notification seeks to give exemption from registration for any person engaged in the exclusive supply of goods like Fly ash bricks, Fly ash aggregates, Fly ash blocks and whose aggregate turnover in the financial year does not exceed INR 4 million.
| Notification No. 16/2022 - Central Tax |
Notification provides that registered persons engaged in the supply of goods like Fly ash bricks, Fly ash aggregates, Fly ash blocks shall not be eligible to opt for the Composition levy.
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