Background:
In 44th GST Council Meeting reduction in GST rate of goods and services w.r.t. items being used in COVID- 19 relief and management were discussed to provide relief to the taxpayers. In respect of the same following notification has been passed:
Notification:
The CBIC vide Notification No. 04/2021- Central Tax (Rate) dated June 14, 2021 amended Notification No. 11/2017- Central Tax (Rate) dated June 28, 2017 (“Services Rate Notification”) to reduce the rate on construction services w.r.t. a structure meant for funeral, burial or cremation of deceased to 2.5% CGST.
Relevant portion of amended Services Rate Notification reads as under:
|
Sl. No. |
Heading | Description of Service | Rate |
Condition |
|
3 |
Heading 9954 (Construction services) |
(iv) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 other than that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (f) a structure meant for funeral, burial or cremation of deceased. Provided that during the period beginning from the 14th June, 2021 and ending with the 30th September, 2021, the central tax on service of description as specified in clause (f), shall, irrespective of rate specified in column (4), be levied at the rate of 2.5 per cent. |
6 |
– |
Similar Notifications have been passed under the Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”).
Note: The above 2.5% is to be read as 5% for IGST Notification.
The CGST (Rate) Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-04-2021-2020-cgst-rate.pdf
The IGST (Rate) Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-4-2021-igst-rate-english.pdf
The UTGST (Rate) Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-04-2021-utgst-rate.pdf