52nd GST Council Meeting: Other GST Law Changes Related to Services

The GST Council’s 52nd meeting was held in Delhi on October 07, 2023, under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has inter-alia made the following recommendations:

• To clarify that job work services for processing of barley into malt attracts GST @ 5% as applicable to “job work in relation to food and food products” and not 18%.
• From January 1, 2022, the responsibility for paying GST on bus transportation services provided through Electronic Commerce Operators (ECOs) has been shifted to the ECOs under section 9(5) of the CGST Act, 2017. This change was made in response to industry associations’ representations, recognizing that many small bus operators supplying services through ECOs, typically owning one or two buses, faced challenges in registering and meeting GST compliance requirements.

To strike a balance between the ease of doing business for small operators and the ability of large organized players to claim Input Tax Credit (ITC), the GST Council has recommended that bus operators organized as companies should be excluded from the purview of Section 9(5) of the CGST Act, 2017. This exemption allows them to pay GST on their services using their available ITC.

• To clarify that District Mineral Foundations Trusts (DMFT) set up by the State Governments across the country in mineral mining areas are Governmental Authorities and thus eligible for the same exemptions from GST as available to any other Governmental Authority.
• Supply of all goods and services by Indian Railways shall be taxed under the Forward Charge Mechanism to enable them to avail of ITC. This will reduce the cost for Indian Railways.

The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1965431

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💥Only Few Seats are Left; Register Now !! 💥 🔰 FREE Webinar On: 📢 “Important changes in GST Law w.e.f. October 1, 2023” 🗓️ Date : October 09, 2023, Monday ⏰ Time : 7:30 PM to 9:00 PM (IST) 🎤 Speaker : Adv Bimal Jain 🔖 Registration Link:  https://zoom.us/webinar/register/WN_9T2fW11WRmimW4HiwWtNYQ 📝 Coverage: ✔️ New condition for Supply of services/goods to SEZ Developer/Unit ✔️ Input Tax Credit for CSR Expenses restriction ✔️ Input Tax Credit reversal under Rule 42 & Rule 43 with respect to Supplies from Bonded Warehouse ✔️ Filing returns/statements namely GSTR 1, GSTR 3B, TDS Statement, and Annual Return restriction ✔️ IGST applicability on Ocean Freight by the importer of goods ✔️ Can Suppliers of goods through an E-Commerce platform are eligible to opt for a composition scheme ✔️ Offenses have been decriminalized, and what is the new threshold amount for prosecution under GST Law ✔️ Important Changes under Online Gaming ✔️ Q&A and open discussion and many more Limited seats available Follow us on our social media for more updates: 🔹 WhatsApp Channel🔹 Facebook🔹 Twitter🔹 LinkedIn🔹 Instagram🔹 YouTube