CBIC Issues Clarifications Regarding Applicability of GST on Certain Services
By: Admin July 16, 2024 Categories: 53rd GST Council Meet | Notification & Circular
The CBIC, vide Circular No. 228/22/2024-GST dated July 15, 2024, issued clarifications regarding the applicability of GST on certain services based on recommendations from the 53rd GST Council meeting held on June 22, 2024, in New Delhi.
1. GST Exemption for Ministry of Railways (Indian Railways)
1.1 Outward Supplies:
Services provided to the general public by the Ministry of Railways, such as sale of platform tickets, retiring rooms, cloak room services, and battery-operated car services, are exempt from GST. Supplies between various zones/divisions of the Ministry are also exempt, effective from July 15, 2024.
1.2 Regularization:
GST liability for services provided between October 20, 2023, and July 14, 2024, is regularized on an “as is where is” basis.
2. GST Exemption for SPVs and Ministry of Railways
2.1 Infrastructure Use:
Services provided by Special Purpose Vehicles (SPVs) to the Ministry of Railways allowing use of infrastructure built and owned by SPVs during the concession period, and maintenance services by the Ministry to SPVs, are exempt from GST, effective from July 15, 2024.
2.2 Regularization:
GST liability for these services from July 1, 2017, to July 14, 2024, is regularized on an “as is where is” basis.
3. Statutory Collections by RERA
3.1 Statutory Collections:
Statutory collections made by the Real Estate Regulatory Authority (RERA) under the Real Estate (Regulation and Development) Act, 2016, are covered under SI. No. 4 of notification No. 12/2017-CT(R) and are exempt from GST.
4. Incentive Amount in Digital Payment Ecosystem
4.1 Incentive Sharing:
Incentive amounts shared by acquiring banks with other stakeholders in the digital payment ecosystem under the Incentive Scheme for promoting RuPay Debit Cards and low-value BHIM-UPI transactions are treated as subsidies and are not taxable.
5. Reinsurance of Specified Insurance Schemes
5.1 Exempt Schemes:
Reinsurance of certain general and life insurance schemes exempt from GST is also exempt, and GST liability for the period from July 1, 2017, to January 24, 2018, is regularized on an “as is where is” basis.
6. Reinsurance of Government-Paid Insurance Schemes
6.1 Government-Paid Schemes:
Reinsurance of insurance schemes where the total premium is paid by the Government is exempt, and GST liability for the period from July 1, 2017, to July 26, 2018, is regularized on an “as is where is” basis.
7. Retrocession Services
7.1 Definition Clarification:
The term “reinsurance” in SI. No. 36A of notification No. 12/2017-CT(R) includes “retrocession” services.
8. Accommodation Services
8.1 Exemption Criteria:
Accommodation services with a value of supply less than or equal to ₹20,000 per person per month for a minimum continuous period of 90 days are exempt from GST, effective from July 15, 2024.
8.2 Regularization:
GST liability for such accommodation services provided between July 1, 2017, and July 14, 2024, is regularized on an “as is where is” basis.
For detailed information, refer to the full circular issued by CBIC on July 15, 2024.
