Background:
Earlier, CBIC had issued Notification No.12/2017- Central Tax (Rate), dated June 28, 2017 (“Services Exemption Notification”) w.r.t. the list of exempted supply of services under the Central Goods and Services Act, 2017 (“CGST Act”).
Following Notification has been issued in respect of the same.
Notification:
Now, the CBIC vide Notification No. 16/2021-Central Tax (Rate) dated November 18, 2021, has further amended the Services Exemption Notification w.e.f. January 1, 2022, in a following manner:
- In Serial No. 3 (i.e., pure services) and 3A (i.e., Composite supply of goods and services in which the value of supply of goods constitutes not more than 25% of the value of the said composite supply), the words “or a Governmental authority or a Government Entity” have been omitted in order to exclude such services supplied to a Governmental Authority or Government Entity. Thus, services mentioned in Serial No. 3 and 3A provided to Governmental authority and Government Entity shall no longer be exempt from January 1, 2022 and shall attract GST as applicable under Services Rate Notification.
Similar notifications have been passed under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”).
CGST (Rate) Notification: http://www.a2ztaxcorp.com/wp-content/uploads/2021/11/Notification-16-2021-CGST.pdf
IGST (Rate) Notification: http://www.a2ztaxcorp.com/wp-content/uploads/2021/11/Notification-16-2021-IGST.pdf
UTGST (Rate) Notification: http://www.a2ztaxcorp.com/wp-content/uploads/2021/11/Notification-16-2021-UTGST.pdf
Our comments:
Similar changes have been made Notification No.11/2017- Central Tax (Rate), dated June 28, 2017 (“Services Rate Notification”) vide Notification No. 15/2021-Central Tax (Rate) dated November 18, 2021 in order to make composite supply of works contract services supplied to Governmental Authority or Government Entity taxable @ 18%.
Online GST Course by Bimal Jain
Recorded: Certified Advanced GST Course
Course Details: Certificate of Participation will be Provided, Free GST Updates on E-mail, WhatsApp, Telegram for 1 Year, Background Material and PPT will be Provided on the downloadable basis, Total 21 Recorded Sessions (60 Hours), will be available for 120 hours or 60 Days whichever expires earlier.
For Registration:- https://cutt.ly/hxjl5Cu
Recorded: GST Course on Exports, Deemed Exports, SEZ, Imports, Merchandise Exports, Inverted Duty Structure (including Refunds)
Course Details: 6 Online Recorded Sessions of 2.30Hrs each with Background Material (BGM)
For Registration:- https://cutt.ly/pvw7mzl
For more details, Call: +91-8076563802, E-mail: intern@a2ztaxcorp.com, Web: www.a2ztaxcorp.in
DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.