Background:
The GST Council in its 52nd meeting, interalia recommend to supply of goods and services by Indian Railways shall be taxed under the Forward Charge Mechanism (FCM) to enable Indian Railways to avail ITC which would reduce the cost of Indian Railways.
Notification:
Now, the CBIC vide Notification No. 13/2023 Central Tax (Rate) dated October 19, 2023, has issued amendments in Notification No. 12/2017 Central Tax (Rate) dated June 28, 2017 in the following manner:
|
Sl. No. |
Chapter, Section, Heading, Group or Service Code
(Tariff) |
Description of Services | Rate
(per cent) |
Condition |
| 6 | Chapter 99 |
Services by the Central Government, State Government, Union territory or local authority excluding the following services: a. Services by way the Department of Posts and the Ministry of Railways (Indian Railways) |
Nil |
Nil |
|
7 |
Chapter 99 |
Services provided by the Central Government, State Government, Union territory or local authority to a business entity with an aggregate turnover of up to such amount in the preceding financial year as makes it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) Explanation. For the purposes of this entry, it is hereby clarified that the provisions of this entry shall not be applicable to: a. Services (i) By the Department of Posts and the Ministry of Railways (Indian Railways) |
Nil | Nil |
|
8 |
Chapter 99 |
Services provided by the Central Government, State Government, Union territory or local authority to another Central Government, State Government, Union territory or local authority: Provided that nothing contained in this entry shall apply to services: (i) By the Department of Posts and the Ministry of Railways (Indian Railways) |
Nil |
Nil |
|
9 |
Chapter 99 |
Services provided by Central Government, State Government, Union territory or a local authority where the consideration for such services does not exceed five thousand rupees: Provided that nothing contained in this entry shall apply to— (i) Services by the Department of Posts and the Ministry of Railways (Indian Railways) |
Nil |
Nil |
Further, the CBIC vide Notification No. 14/2023 Central Tax (Rate) dated October 19, 2023, issued amendments in Notification No. 13/2017 Central Tax (Rate) dated June 28, 2017 (“Service Reverse Charge Notification”) in the following manner:
| Sl. No. | Category of Supply of Services | Supplier of Service | Recipient of Service |
|
5 |
Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding,:
(1) renting of immovable property, and (2) services specified below: (i) services by the Department of Posts and the Ministry of Railways (Indian Railways) |
Central Government, State Government, Union territory or local authority |
Any business entity located in the taxable territory. |
|
5A |
Services supplied by the Central Government [excluding the Ministry of Railways (Indian Railways)], State Government, Union territory or local authority by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017 (12 of 2017) | Central Government, State Government, Union territory or local authority |
Any person registered under the Central Goods and Services Tax Act, 2017 |
Furthermore, the CBIC vide Notification No. 19/2023 Central Tax (Rate) dated October 19, 2023, has issued amendments in Notification No. 04/2017 Central Tax (Rate) dated June 28, 2017 in the following manner:
| Sl. No. | Tariff item, sub-heading, heading or
Chapter |
Description of Supply of Goods | Supplier of Goods | Recipient of Supply |
| 6 | Any Chapter |
Used vehicles, seized and confiscated goods, old and used goods, waste and scrap |
Central Government [excluding Ministry of Railways (Indian Railways)], State Government, Union territory or a local authority |
Any registered person |
These Notifications will come into effect from October 20, 2023.
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”).
CGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009894/ENG/Notifications
IGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009903/ENG/Notifications
UTGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009912/ENG/Notifications
CGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009895/ENG/Notifications
IGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009904/ENG/Notifications
UTGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009913/ENG/Notifications
CGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009900/ENG/Notifications
IGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009909/ENG/Notifications
UTGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009918/ENG/Notifications
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