The Government of West Bengal on September 29, 2022, issued a circular to clarify applicable GST rates & exemptions on certain services, various representations have been received seeking clarification on the said. The GST Council examined the issues in the 47th meeting held on June 28, 2022, and June 29, 2022.
The following issues have been examined and clarified:
• Rate of GST applicable on the supply of ice cream by ice cream parlors during the period from July 01, 2017, to October 05, 2021
It is clarified that past cases of payment of GST on the supply of ice cream by ice-cream parlors @ 5% without ITC shall be treated as fully GST paid to avoid unnecessary litigation. Since the decision is only to regularize the past practice, no refund of GST shall be allowed, if already paid at 18%. With effect from October 06, 2021, the ice cream parlors are required to pay GST on the supply of ice cream at the rate of 18% with ITC.
• Applicability of GST on application fee charged for entrance or the fee charged for issuance of eligibility certificate for admission or for issuance of migration certificate by educational institutions
It is clarified that the amount or fee charged from prospective students for entrance or admission, or for issuance of eligibility certificates to them in the process of their entrance/admission as well as the fee charged for issuance of migration certificates by educational institutions to the leaving or ex-students is covered by an exemption under Sl. No. 66 of Notification No. 1136-F.T. dated June 28, 2017.
• Whether storage or warehousing of cotton in baled or ginned form is covered under entry 24B of Notification No. 1136-F.T. dated June 28, 2017, which exempted services by way of storage and warehousing of raw vegetable fibres such as cotton before July 18, 2022
It is clarified that service by way of storage or warehousing of cotton in ginned and or baled form was covered under entry 24B of notification No. 1136-F.T. dated 28.06.2017 in the category of raw vegetable fibres such as cotton. It may however be noted that this exemption has been withdrawn w.e.f July 18, 2022
• Whether exemption under Sl. No. 9B of notification No. 1136-F.T. dated June 28, 2017 covers services associated with transit cargo both to and from Nepal and Bhutan
It is clarified that exemption under Sl. No. 9B of Notification 1136-F.T. dated June 28, 2017 covers services associated with transit cargo both to and from Nepal and Bhutan.
It is also clarified that the movement of empty containers from Nepal and Bhutan, after the delivery of goods there, is a service associated with the transit cargo to Nepal and Bhutan and is therefore covered by the exemption.
• Applicability of GST on sanitation and conservancy services supplied to the Army and other Central and State Government departments
It is clarified that if such services are procured by the Indian Army or any other Government Ministry/Department which does not perform any functions listed in the 11th and 12th Schedule, in the manner as a local authority does for the general public, the same is not eligible for exemption under Sl. No. 3 and 3A of notification No. 1136-F.T. dated June 28, 2017.
• Whether the activity of selling space for advertisement in souvenirs is eligible for a concessional rate of 5%
It is clarified sale of space for advertisement in souvenir book is covered under serial number (i) of entry 21 of notification No. 1135-F.T. dated June 28, 2017, and attracts GST @ 5%
• Taxability and the applicable rate of GST on the transport of minerals from a mining pit head to a railway siding, beneficiation plant, etc., by vehicles deployed with a driver for a specific duration of time.
It is clarified that such renting of trucks and other freight vehicles with drivers for a period of time is a service of renting of transport vehicles with operator falling under Heading 9966 and not service of transportation of goods by road. This being so, it is not eligible for exemption under Sl. No. 18 of notification No. 1136-F.T. dated 28.06.2017. On such rental services of goods carriages where the cost of fuel is included in the consideration charged from the recipient of service, the GST rate has been reduced from 18% to 12% with effect from July 18, 2022. Prior to July 18, 2022, it attracted GST at the rate of 18%.
• Whether location charges or preferential location charges (PLC) collected in addition to the lease premium for a long-term lease of land constitute part of the lease premium or of the upfront amount charged for a long-term lease of land and are eligible for the same tax treatment
It is clarified that location charges or preferential location charges (PLC) paid upfront in addition to the lease premium for a long-term lease of land constitute part of the upfront amount charged for a long-term lease of land and are eligible for the same tax treatment, and thus eligible for exemption under Sl. No. 41 of notification No. 1136-F.T. dated June 28, 2017.
• Applicability of GST on payment of honorarium to the Guest Anchors
It is clarified that the supply of all goods & services is taxable unless exempt or declared as „neither a supply of goods nor a supply of service‟. Services provided by the guest anchors in lieu of honorarium attract GST liability. However, guest anchors whose aggregate turnover in a financial year does not exceed Rs 20 lakhs (Rs 10 lakhs in case of special category states) shall not be liable to take registration and pay GST.
• Whether the additional toll fees collected in the form of higher toll charges from vehicles not having fastag are exempt from GST
It is clarified that additional fee collected in the form of higher toll charges from vehicles not having Fastag is essentially payment of toll for allowing access to roads or bridges to such vehicles and may be given the same treatment as given to toll charges.
• Applicability of GST on services in form of Assisted Reproductive Technology (ART)/ In vitro fertilization (IVF)
The abnormality/disease/ailment of infertility is treated using ART procedures such as IVF. It is clarified that services by way of IVF are also covered under the definition of health care services for the purpose of the exemption notification i.e., Notification No. 1136-F.T. dated June 28, 2017.
[Trade Circular No. 10/2022]
