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GST Update on Summary of the circulars issued on 11.10.2019

GST Update on Summary of the circulars issued on 11.10.2019
Circular No. and Date Clarifications issued through circulars
Circular No. 113/2019 dated 11.10.2019 This circular has been issued to provide some clarifications in respect of applicable GST rates on the following items:
(i) Classification of leguminous vegetables such as grams when subjected to mild heat treatment-It is clarified that such leguminous vegetables which are subjected to mere heat treatment not subjecting to any other processing or addition of any other ingredients such as salt and oil, would be classified under HS code 0713. Such goods if branded and packed in a unit container would attract GST at the rate of 5% [S. No. 25 of notification No. 1/2017- Central Tax (Rate) dated 28.06.2017]. In all other cases such goods would be exempted from GST [S. No. 45 of notification No. 2/2017- Central Tax (Rate) dated 28.06.2017].
 (ii) Almond Milk - Almond milk is classified under the residual entry in the tariff item 2202 99 90 and attract GST rate of 18%.
(iii) Applicable GST rate on Mechanical Sprayer -vide amended notification No. 6/2018- Central Tax (Rate), dated 25thJanuary, 2018, GST at the rate of 12% was prescribed for the mechanical sprayers. It is clarified that “mechanical sprayers” of all types whether or not hand operated (like hand operated sprayer, power operated sprayers, battery operated sprayers, foot sprayer, rocker etc.) are included in this entry.
(iv)Taxability of imported stores by the Indian Navy -It is clarified that imported stores for use in navy ships are entitled to exemption from GST.
 (v)Applicable GST rate on parts for the manufacture solar water heater and system -It is clarified that parts including Solar Evacuated Tube falling under chapter 84, 85 and 94 for the manufacture of solar water heater and system will attract 5% GST.
(vi) Applicable GST on parts and accessories suitable for use solely or principally with a medical device-It is clarified that 12% IGST would be applicable on the parts and accessories suitable for use solely or principally with a medical device falling under heading 9018, 9019, 9021 or 9022 in terms of chapter note 2 (b)
Circular No. 114/2019 dated 11.10.2019 This circular provides us clarification on scope of support services to exploration, mining or drilling of petroleum crude or natural gas or both.
It is hereby clarified that the scope of the entry at Sr. 24 (ii) under heading 9986 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017{Service of exploration, mining or drilling of petroleum crude or natural gas or both}shall be governed by the explanatory notes to service codes 998621 and 998622 of the Scheme of Classification of Services.
It is further clarified that the scope of the entry at Sr. No. 21 (ia) under heading 9983 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 inserted with effect from 1st October 2019 vide Notification No. 20/2019- CT(R) dated 30.09.2019 {(ia) Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both } shall be governed by the explanatory notes to service codes 998341 and 998343 of the Scheme of Classification of Services.
The services which do not fall under the said entries under heading 9983 and 9986 of the said notification shall be classified in their respective headings and taxed accordingly.
Circular No. 115/2019 dated 11.10.2019 Clarification is being given on taxability of GST on the charges like Passenger Service Fee (PSF) and User Development Fee (UDF) being collected by the Airlines on behalf of Airport operators from the passengers and the availment of credit with respect to such charges to the passengers.
The board clarifies that airline should separately indicate actual amount of PSF and UDF and GST payable on such PSF and UDF by the airport licensee, in the invoice issued by airlines to its passengers. The airline shall not be eligible to take credit on the GST paid on such charges. The amount so recovered from passengers as pure agent shall not be included in the value of supply made by airlines and so GST shall not be leviable. The Airline shall indicate in the invoice being raised to the passengers that the charges being collected are in the capacity of Pure Agent and GST is inclusive in it. This indicates that the registered passengers may take credit of GST paid on PSF and UDF on the basis of this invoice.
Circular No. 116/2019 dated 11.10.2019 It is being clarified that if the recipient donates some gift or anything to the charitable organizations, then such amount is not leviable to tax. Provided that allthe three conditions are satisfied namely the gift or donation is made to a charitable organization, the payment has the character of gift or donation and the purpose is philanthropic (i.e. it leads to no commercial gain) and not advertisement, then GST is not leviable.
Circular No. 117/2019 dated 11.10.2019 Maritime Training Institutes and their training courses are approved by the Director General of Shipping which are duly recognized under the provisions of the Merchant Shipping Act, 1958 read with the Merchant Shipping (standards of training, certification and watch-keeping for Seafarers) Rules, 2014. Therefore, the Maritime Institutes are educational institutions under GST Law and the courses conducted by them are exempt from levy of GST. The exemption is subject to meeting the conditions specified at Sl. No. 66 of the notification No. 12/ 2017- Central Tax (Rate) dated 28.06.2017
Circular No. 118/2019 dated 11.10.2019 It is clarified that the place of supply of software/design by supplier located in taxable territory to service recipient located in non-taxable territory by using sample prototype hardware / test kits in a composite supply, where such testing is an ancillary supply, is the location of the service recipient as per Section 13(2) of the IGST Act. Provisions of Section 13(3)(a) of IGST Act do not apply separately for determining the place of supply for ancillary supply in such cases.
Circular No. 119/2019 dated 11.10.2019 For the past period i.e. from 01.07.2017 to 30.09.2019, GST is payable under forward charge by the lender and lender (supplier) may request SEBI to disclose the information about borrower for discharging GST under forward charge. The nature of tax payable shall be IGST. However, if the service provider has already paid CGST / SGST / UTGST treating the supply as an intra-state supply, such lenders shall not be required to pay IGST again in lieu of such GST payments already made.
With effect from 1st October, 2019, the borrower of securities shall be liable to discharge GST as per Sl. No 16 of Notification No. 22/2019-Central Tax (Rate) dated 30.09.2019 under reverse charge mechanism (RCM). The nature of GST to be paid shall be IGST under RCM.
Circular No. 121/2019 dated 11.10.2019 Service by way of grant of alcoholic liquor license, against consideration in the form of license fee or application fee or by whatever name it is called, by State Government as neither a supply of goods nor a supply of service. This special dispensation applies only to supply of service by way of grant of liquor licenses by the State Governments as an agreement between the Centre and States and has no applicability or precedence value in relation to grant of other licenses and privileges for a fee in other situations, where GST is payable.
 







































































































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