Page 32 - DTPA Journal Aug 18
P. 32
DTPA - J | 2017-18 | Volume 3 | August 2018
Surprisingly, it has also been stated that the o GST rate slabs on accommodation
substantive right of a taxable person in the form of service will now be based on
unutilised balance of input tax credit after transactionvalue instead of declared
payment of tax for and upto July 2018 on the tariff which is likely to provide major
st
inward supplies received up to 31 July 2018 will relief to the hotel industry.
lapse. This provision seems to be regressive and o In case of multimodal transportation
difficult to implement as finding out the input tax of goods i.e. by atleast two different
credit accumulated on account of inverted duty modes of transport from the place of
structure may be very difficult to calculate. This acceptance of goods to the place of
provision may be subject to litigation as the GST delivery by a multimodal transporter,
Acts do not give power to the Government to notify the rate will be 12%.
lapsing of input tax credit in any situation.
o The rate of tax on e-books has been
Notification no. 20/2018-Central Tax (rate) dated prescribed as 5%.
th
26 July 2018
Notification no. 13/2018-Central Tax (rate)
Notification no. 21/2018-Integrated Tax (rate) th
th
dated 26 July 2018 dated 26 July 2018
Notification no. 14/2018-Integrated Tax (rate)
Notification no. 20/2018-Union Territory Tax (rate) dated 26 July 2018
th
th
dated 26 July 2018
Notification no. 13/2018-Union Territory Tax
Ø th
On certain handicraft items, the rate of GST
has been reduced significantly. The maximum (rate) dated 26 July 2018
Services by the Central Government, State
rate on these handicraft items is now given as Ø
12%. Handicraft goods have been defined as Government, Union territory or local
follows: authority in relation to a function entrusted to a
Municipality under Article 243W or 243G to
“Goods predominantly made by hand even the Panchayat will be considered as neither
though some tools or machinery may also have
been used in the process; such goods are supply of goods nor supply of services.
graced with visual appeal in the nature of Earlier, the said function was exempt which has
now been rationalized.
ornamentation or in-lay work or some similar
work of a substantial nature; possess Notification no. 16/2018-Central Tax (rate)
th
distinctive features, which can be aesthetic, dated 26 July 2018
artistic, ethnic or culturally attached and are Notification no. 17/2018-Integrated Tax (rate)
th
amply different from mechanically produced dated 26 July 2018
goods of similar utility”
Notification no. 16/2018-Union Territory Tax
Notification no. 21/2018-Central Tax (rate) (rate) dated 26 July 2018
th
th
dated 26 July 2018
Ø
The following services have been exempted
Notification no. 22/2018-Integrated Tax (rate) from GST:
th
dated 26 July 2018
o Services by an old age home run by
Notification no. 21/2018-Union Territory Tax C e n t r a l G o v e r n m e n t , S t a t e
th
(rate) dated 26 July 2018 Government or by an entity registered
The rate of tax on services has been amended
Ø under section 12AA of the Income-tax
as follows: Act, 1961 (43 of 1961) to its residents
(aged 60 years or more) against
o Supply of food and drinks in
consideration uptotwenty five
restaurant, mess, canteen, eating thousand rupees per month per
joints and such supplies to institutions
(educational, office, factory, hospital) m e m b e r, p r o v i d e d t h a t t h e
consideration charged is inclusive of
on contractual basis will not be charges for boarding, lodging and
taxable at GST rate of 5%. It has been maintenance.
stated that the scope of outdoor
catering under 7(v) is restricted to o Services supplied by electricity
supplies in case of outdoor/indoor distribution utilities by way of
functions that are event based and construction, erection, commissioning,
occasional in nature wherein the rate or installation of infrastructure for
will be 18%. extending electricity distribution
network upto the tube well of the
o Supply of food or article for human farmer or agriculturalist for agricultural
consumption by Indian Railways or use.
IRCTC in trains or platforms will be
taxable at 5% o Exemption on Services by way of
29 | Direct Taxes Professionals' Association - Journal www.dtpa.org
