GST Update (26-11-2021)
Today is Constitution Day also known as 'Samvidhan Divas', is celebrated in our country on 26th November every year to commemorate the adoption of the Constitution of India. On 26th November 1949, the Constituent Assembly of India adopted the Constitution of India, which came into effect from 26th January 1950. https://www.mygov.in/campaigns/constitution-day/
Amendments in relation to services notified under section 9(5) of the CGST Act, 2017, the tax on which is payable by the electronic commerce operator
1.???Services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle were included in clause (i) of the notification. The said clause (i) has been amended to the effect that services by way of transportation of passengers by an omnibus or any other motor vehicle have also been included therein.
2.???A new clause (iii) has been inserted in the notification to include supply of restaurant service other than the services supplied by restaurant, eating joints etc. located at specified premises, within the list of services, the tax on which is payable by the electronic commerce operator. Here, specified premises would mean premises providing hotel accommodation service having declared tariff of any unit of accommodation above Rs. 7,500 per unit per day or equivalent.
All the above amendments shall be effective from January 1, 2022. (Notification No. 17/2021-CT (R) dt. 18.11.2021)
Amendments in relation to Composite supply of works contract services provided for certain specific purposes
Composite supply of works contract services provided for certain specific purposes to Central Government, State Government, Union territory, a local authority, a governmental authority or a government entity is liable to CGST @ 6% (effective rate 12%) or 2.5% (effective rate 5%), as the case may be. With effect from January 1, 2022, such services when provided to a governmental authority or a government entity shall be charged to CGST @ 9% (effective rate 18%).?Thus, the lower rate of tax viz., 12%/5% shall be applicable only when such services are provided to Central Government, State Government, Union territory or a local authority. (Notification No. 15/2021-CT (R) dt. 18.11.2021).
Amendments in relation to job work services of dyeing or printing of textile and textile products
With effect from January 1, 2022, job work services of dyeing or printing of textile and textile products shall not be liable to CGST @ 2.5% (effective rate 5%). The same shall be liable to CGST @ 6% (effective rate 12% when undertaken for registered principal) or 9% (effective rate 18%) when undertaken for un-registered principal. (Notification No. 15/2021-CT (R) dt. 18.11.2021).
Amendments in relation to exemption available on services
1.???Exemption available on supply of pure services (excluding works contract service or other composite supplies involving supply of any goods) and composite supply of goods and services in which the value of supply of goods constitutes not more than 25% of the value of the said composite supply provided by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution to a Governmental Authority or a Government Entity, has been withdrawn.
2.???The exemption on services of transport of passengers, with or without accompanied belongings,
a.???by non-air conditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire, or
b.???stage carriage other than air conditioned stage carriage;
shall not be available if such services are supplied through an electronic commerce operator, and are notified under sub-section (5) of section 9 of the CGST Act, 2017.
3.???The exemption on service of transportation of passengers, with or without accompanied belongings, by metered cabs or auto-rickshaws (including e-rickshaws) shall not be available if such services are supplied through an electronic commerce operator, and are notified under sub-section (5) of section 9 of the CGST Act, 2017.
(Notification No. 16/2021-CT (R) dt. 18.11.2021)
We sincerely hope that the update shall help you in your business & profession.
CA. Tarun Kr. Gupta
+91 9830124482