Background:
The GST Council’s 49th meeting was held in Delhi on February 18, 2023 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has inter-alia made the recommendation to extend the dispensation available to the Central Government, State Governments, Parliament and State Legislatures with regard to payment of GST under the Reverse Charge Mechanism (“RCM”) to the Courts and Tribunals also in respect of taxable services supplied by them such as renting of premises to telecommunication companies for installation of towers, renting of the chamber to lawyers etc.
Notification:
Now, the CBIC vide Notification No. 2/2023-Central Tax (Rate) dated February 28, 2023 has issued amendments in Notification No. 13/2017-Central Tax (Rate) dated June 28, 2017 (“the Services RCM Notification”), in order to align with recommendations of the 49th GST Council Meeting held on February 18, 2023, w.e.f. March 01, 2023, in a following manner:
- Substituted the words “and State Legislatures” with the words “, State Legislatures, Courts and Tribunals” in clause (h) of the Explanation to the Services RCM Notification.
Similar Notifications have been passed under the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”) and the Union Territory Goods and Services Tax Act, 2017 (“the UTGST Act”).
The CGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009643/ENG/Notifications
The IGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009647/ENG/Notifications
The UTGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009651/ENG/Notifications