CBIC Issues Important Clarification on GST Rates and Classification (Services) Based on Recommendations from the 54th GST Council
By: Admin
October 12, 2024
Categories: 54th GST Council
4 Min Read
The Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 234/28/2024-GST on October 11, 2024, providing key clarifications on the applicability of GST on various services. These clarifications follow the recommendations made during the 54th GST Council meeting held on September 9, 2024, in New Delhi. Key areas addressed in the circular include:
GST on University Affiliation Services to Colleges
The CBIC clarified that the affiliation services provided by universities to colleges are subject to 18% GST. These services, which assess infrastructure and faculty eligibility, are not exempt under the provisions extended to educational institutions as per Notification No. 12/2017-CT(R).
GST on Affiliation Services by Educational Boards to Schools
For Central and State educational boards or councils providing affiliation services to schools, GST is applicable. However, affiliation services to government schools (owned or controlled by the government) are exempt from GST starting October 10, 2024. Additionally, the payment of GST on affiliation services from 2017 to 2021 has been regularized.
GST Exemption on DGCA-Approved Flying Training Courses
Flying Training Organizations (FTOs) offering DGCA-approved courses are exempt from GST. This exemption is based on the mandate that such courses provide qualifications recognized by law, and completion certificates are issued under the Aircraft Act, 1934.
GST on Helicopter Passenger Transport
GST on helicopter passenger transport via seat-sharing is set at 5%, effective from October 10, 2024. Additionally, GST for chartered helicopter services will continue to be taxed at 18%.
GST on Ancillary Services Provided by Goods Transport Agencies
Incidental services, such as loading, unloading, and temporary warehousing, provided in connection with road transportation of goods will be treated as part of the composite supply of goods transport services. This composite classification remains unchanged, even if services are invoiced separately, unless provided independently.
These clarifications aim to resolve ambiguities in the GST law and ensure compliance across various sectors.
GSTUpdate #CBIC #GSTCouncil #Taxation #GSTServices #BusinessTax #GSTClarifications #Finance #GSTCompliance #IndirectTaxes #GSTNews #GSTIndia #54thGSTCouncil #GSTCircular #GST2024 #AffiliationServices #TaxUpdates
