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Summary of clarification on 47th GST Council Meeting’s Recommendation

Finance Minister, Sitharaman, in the 47th GST Council Meeting claimed there were no disagreements from any side. All the states agreed to the proposals.

There have been multiple GST council’s meeting from the day it was implemented, in continuation of those meetings, one more meeting took place on 28th June 2022, which was concluded on 29th June 2022.

Also Read: Gift Cards, loyalty points to be excluded from VDA, CBDT Notifies.

Below is the summary of clarification issued post the meeting of GST council in the 47th Council meeting lead by Finance Minister Nirmala Sitharaman.

  1. Sale of space for advertisements in souvenirs published in the form of books attracts GST @5%.
  2. Sale of land after leveling, laying down of drainage lines etc., is exempt from GST.
  3. Situations in which corporate recipients are liable to pay GST on renting of motor vehicles designed to carry passengers. It has been clarified that:
    • where the body corporate hires the motor vehicle (for transport of employees etc.) for a period of time, during which the motor vehicle is at the disposal of the body corporate and the body corporate defines how and when the vehicles will be operated, determining schedules, routes and other operational considerations, the service would fall under Heading 9966, and the body corporate shall be liable to pay GST under RCM;
    • where the body corporate avails the passenger transport service for specific journeys or voyages and does not take vehicles on rent for any particular period of time, the service would fall under Heading 9964 and the supplier of service would be liable to pay GST under forward charge.
  4. It is clarified that location charges or preferential location charges (PLC) paid upfront in addition to the lease premium for long term lease of land constitute part of upfront amount charged for long term lease of land and such charges are exempt from GST.
  5. It is clarified that stones like Napa Stone, brittle in nature, which are ready to use but are minor polished attracts GST @5%.
  6. It is clarified that: Mangoes, sliced and dried, falling under Heading 0804 attracts GST @5%
  7. All other forms of dried mango, including Mango pulp, attracts GST @12%.
  8. Fresh mangoes, falling under Heading 0804 are exempt from GST.
  9. It is clarified that electrically operated vehicle classifiable under Heading 8703 attracts GST @5 % even if battery is not fitted to such vehicle at the time of supply.
  10. It is clarified that Services associated with transit cargo both to and from Nepal and Bhutan are exempted from GST.
  11. It is clarified that supply of treated sewage water falling under Heading 2201 is exempt from GST.
  12. It is clarified that GST exemption is not applicable on sanitation and conservancy services supplied to Army and other Central and State Government departments, which do not perform any functions listed in the 11th and 12th Schedule to the Constitution, in the manner as a local authority does for the general public.
  13. It is clarified that services by way of IVF are covered under healthcare services and are exempt from GST.
  14. It is clarified that the condition of 90% or more fly ash content applies only to Fly ash aggregates and not to fly ash bricks and fly ash block and such fly ash and fly ash aggregates attracts GST @ 12%.
  15. It is clarified that service by way of renting of trucks and other freight vehicles with driver for a period of time is a service of renting of transport vehicles with operator falling under Heading 9966 (and not service of transportation of goods by road) and attracts GST @18% upto 17.07.2022 and @12% with effect from 18.07.2022 in cases where the cost of fuel is included in the consideration charged from the recipient of services.
  16. It is clarified that Nicotine Polacrilex gum is classifiable under Heading 2404 91 00 and attracts GST @18%.
  17. It is clarified that additional fee collected in the form of higher toll charges from vehicles not having Fastag is essentially payment of toll for allowing access to roads or bridges to such vehicles and thus exempted from GST.
  18. It is clarified that GST is not applicable on the amount of fee charged by the “educational institutions” from prospective students for entrance or admission, o from prospective students for issuance of eligibility certificate in the process of entrance/ admission.
  19. Past cases of payment of GST on supply of ice-cream by ice-cream parlours @5% without ITC shall be treated as fully GST paid.
  20. No refund of GST allowed, if GST is already paid @18%.
  21. With effect from 06.10.2021, the ice cream parlours are required to pay GST on supply of ice-cream @18% with ITC.
  22. It is clarified that Services provided by the guest anchors in lieu of honorarium attracts GST @18%. However, guest anchors whose aggregate turnover in a financial year does not exceed Rs 20 lakhs (Rs 10 lakhs in case of special category states) shall not be liable to take registration and pay GST.

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