Multiple reliefs from GST taxation have been provided to following
categories of services –
(i)
Agriculture, farming and food processing industry,
Ø
Exempt services by way of artificial
insemination of livestock (other than horses).
Ø
Exempt warehousing of minor forest produce in
line with exemptions provided to the agricultural produce.
Ø
Exempt the works of installation and
commissioning undertaken by DISCOMS/electricity distribution companies for
extending electricity distribution network upto the tube well of the farmer/
agriculturalist for agricultural use.
Ø
Exempt services provided by FSSAI to food
business operators.
(ii) Education,
training and skill development,
Ø
Reduce rate of GST from 18% to 5% on supply
only of e-books for which print version exist.
(iii) Pension, social
security and old age support.
Ø
Exempt services provided by Coal Mines
Provident Fund Organizations to the PF subscribers from the applicability of
GST on the lines of EPFO.
Ø
Exempt supply of services by an old age
home run by State / Central Government or by a body registered under 12AA of
Income Tax Act) to its residents (aged 60 years or more) against consideration
upto Rupees Twenty Five Thousand per month per member provided consideration is
inclusive of charges for boarding, lodging and maintenance.
Ø
Exempt GST on the administrative fee
collected by National Pension System Trust.
Ø
Exempt services provided by an unincorporated
body or a non-profit entity registered under any law for the time being in
force, engaged in activities relating to the welfare of industrial or
agricultural labour or farmer; or for the promotion of trade, commerce,
industry, agriculture, art, science, literature, culture, sports, education,
social welfare, charitable activities and protection of environment, to own
members against consideration in the form of membership fee up to an amount of
one thousand rupees per member per year.
(iv) Banking/ Finance/
Insurance,
Ø
Exempt Reinsurance Services provided to
specified Insurance Schemessuch as Pradhan Mantri Rashtriya Swasthya Suraksha
Mission (PMRSSM) (Ayushman Bharat), funded by Government.
(v) Government
Services,
Ø
Exempt services provided by Government to
ERCC by way of assigning the right to collect royalty, DMFT etc. from the
mining lease holders.
Ø
Exempt the guarantees given by
Central/State Government/UT administration to their undertakings/PSUs.
(vi) Hotel Industry,
Ø
Prescribe GST rate slabs on accommodation
service based on transaction value instead of declared tariff which is likely
to provide major relief to the hotel industry.
(vii) Miscellaneous,
Ø
Exempt GST on import of services by Foreign
Diplomatic Missions/ UN & other International Organizations based on
reciprocity.
Ø
Exempt services supplied by an establishment
of a person in India to any establishment of that person outside India, which
are treated as establishments of distinct persons in accordance with
Explanation I in section 8 of the IGST Act provided the place of supply is
outside the taxable territory of India in accordance with section 13 of IGST
Act.
Ø
Prescribe GST rate of 12% with full ITC
under forward charge for composite supply of multimodal transportation.
Ø
Rationalize the notification entry prescribing
reduced GST rate on composite supply of works contract received by the
Government or a local authority in the course of their sovereign functions.
Ø
Rationalize entry relating to composite supply
of food and drinks in restaurant,mess, canteen, eating joints and such supplies
to institutions (educational, office, factory,hospital) on contractual basis at
GST rate of 5%; and making it clear that the scope ofoutdoor catering under
7(v) is restricted to supplies in case of outdoor/indoor functions that are
event based and occasional in nature.
Clarifications
Ø
Supply of services provided by State and
Central educational boards to students for conduct of examination will be
clarified to be exempt.
Ø
To
clarify that the courses run by private ITIs for designated trades are exempt
under GST whereas non-designated courses are taxable.
Ø
To
clarify that GST on premium paid by the Governments for implementing
PradhanMantri Rashtriya Swasthya Suraksha Mission (PMRSSM) (Ayushman Bharat) is
exempt from GST.
Ø
To
provide clarification on applicability of Service Tax / GST on services
rendered by an Indian Architect- Consultant in relation to immovable property
located outside India to Indian Diplomatic Missions/Posts abroad.
Ø
To clarify to Auroville foundation
that‘maintenance’ paid by it to Auroviliansis not liable to GST.
Ø
To insert an
explanation in notification No. 13/2017-Central Tax(Rate) to define the term
renting of immovable property.
Ø
To
clarify that certain services such as “deposit works(expenses for providing
electric line/plant)” related to distribution of electricity provided by
DISCOM, attract GST.
Export / other trade facilitation measures
Ø
Extend the exemption granted on outward
transportation of all goods by air and sea by another one year i.e. upto 30th
September, 2019 as relief to the exporter of goods.
Ø
Place liability to pay GST on services
provided by individual DSAs to banks/NBFCs under reverse charge on the buying
banks/NBFCs. However, services by non-individual NBFCs (corporate, partnership
firms) to banks/NBFCs would continue under forward charge, as at present.
It
is proposed to issue notifications giving effect to these recommendations of
the Council with effect from 27th July, 2018.
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