Page 85 - DTPA Journal December 21

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Nov. - Dec., 2021

 REQUIREMENT OF IMPORT ESSENTILIATY CERTIFICATE ISSUED BY DGH
When goods are imported by the company at concessional rate and there is inter state movement of the same
within the same company (that is inter stock transfer between distinct persons), GST Council made a
decision that Original Import Essentiality Certificate issued by DGH is sufficient and there is no need of
taking certificate every time on such inter state movement.

 EXTERNAL BATTERIES SOLD ALONG WITH UPS SYSTEMS OR INVERTERS
If both UPS systems and external batteries are sold under one invoice, there price being separately known and
both being separately identified, it is supply of two different items on one invoice.

Thus, UPS Systems would attract GST @ 18% under Heading 8504 and External Battery (except lithium-ion
Battery) would qualify GST @ 28% under Heading 8507.
 SOLAR PV POWER PROJECTS

GST on specified Renewable Energy Projects can be paid on 70:30 ratio for goods and services respectively
as specified by GST Council. Council also clarifies that no refund would be granted even if the amount paid
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exceeds the amount determined as per Central Tax Rate Notification No. 11/2017 dated 28 June,2017.
 FIBRE DRUMS, WHETHER CORRUGATED OR NON-CORRUGATED
GST Council through this circular clarifies that the GST rate of all corrugated boxes and cartons and even
fibre drums whether partially corrugated shall be uniform @ 18%.
Council further clarifies that no action of recovery would be taken against those taxpayers who paid tax @
12% and neither refund would be permitted to those who previously paid tax @ 18% while some taxpayers
were paying same @ 12%.

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Circular No:-164/20/2021-GST Dated 06 October,2021
Topic: -Clarification regarding GST rates

Background :-Clarification regarding GST rates & exemptions on certain services
Representations have been received for clarification in respect of certain activities which have been clarified
through this Circular.

1. Issue:-Whether cloud kitchen fall under the definition of Restaurant Service?
Clarification:-”Restaurant Service” has been defined in Notification No. 11/2017 which provides that
“Restaurant service‟ means supply, by way of or as part of any service, of goods, being food or any other
article for human consumption or any drink, provided by a restaurant, eating joint including mess, canteen,
whether for consumption on or away from the premises where such food or any other article for human
consumption or drink is supplied.‟
Cloud kitchen is a commercial kitchen space that provides food businesses the facilities and services needed
to prepare menu items for delivery and takeout.
The explanatory notes to the classification of service states that restaurant service includes services provided
by Restaurants, Cafes and similar eating facilities including takeaway services, room services and door
delivery of food. Therefore, it is clear that takeaway services and door delivery services for consumption of

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