The Central Board of Indirect Taxes and Customs (CBIC) on October 31, 2023, issued clarifications regarding the applicability of GST on certain services.
The following issues have been discussed through this circular:
• Whether ‘same line of business’ in the case of passenger transport service and renting of motor vehicles includes leasing of motor vehicles without operators.
• Whether GST is applicable on reimbursement of electricity charges received by real estate companies, malls, airport operators etc. from their lessees/occupants.
• Whether job work for processing “Barley” into “Malted Barley” attracts GST @5% as applicable to "job work in relation to food and food products” or 18% as applicable to “job work in relation to the manufacture of alcoholic liquor for human consumption”.
• Whether Mineral Foundations Trusts (DMFTs) set up by the State Governments are Governmental Authorities and thus eligible for the same exemptions from GST as available to any other Governmental Authority.
• Whether the supply of pure services and composite supplies by way of horticulture/horticulture works (where the value of goods constitutes not more than 25 per cent of the total value of supply) made to CPWD are eligible for exemption from GST under Sr. No. 3 and 3A of Notification no 12/2017-CTR dated June 28, 2017.
Please find the detailed clarifications attached to the document below.
[Circular No. 206/18/2023-GST]
