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GOVERNMENT OF KARNATAKA

No. FD 16 CSL 2023 Karnataka Government Secretariat,

Vidhana Soudha,

Bengaluru, dated: 20/10/2023

NOTIFICATION (12/2023)

In exercise of the powers conferred by sub-section (1), sub-section (3) and sub-section (4)

of section 9, sub-section (1) of section 11, sub-section (5) of section 15, sub-section (1) of section 16

and section 148 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), the

Government of Karnataka, on being satisfied that it is necessary in the public interest so to do, on the

recommendations of the Council, hereby makes the following further amendments inthe Government

of Karnataka Notification (11/2017) No. FD 48 CSL 2017, dated the 29^th June, 2017, published in

the Karnataka Gazette, Extraordinary, Part IVA, No.601, dated the 29^th June, 2017, namely:-

In the said notification, -

(A) in the Table,

(i) against serial number 8, in column (3), in item (vi), after the condition in column (5) against

the rate of 2.5 percent, the following condition shall be inserted, namely:-

“Provided further that where the supplier of input service in the same line of business

charges state tax at a rate higher than 2.5%, credit of input tax charged on the input service

in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not

be taken.

Illustration: ‘A’ engages ‘B’ for transport from New Delhi to Jaipur in a motor cab for Rs.

1000. ‘B’, for supplying the said service, hires a motor cab with operator from ‘C’ for Rs.

¨sÁUÀ – 4 J

Part – IV A

20

2023(

, 28

1945)

BENGALURU, FRIDAY, 20, OCTOBER, 2023( AASHWAYUJA , 28, SHAKAVARSHA, 1945)

. 507

No. 507

2

800. ‘C’ charges ‘B’ state tax at the rate of 6% (Rs. 48). If ‘B’ charges ‘A’ state tax at the

rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line

of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 48.”;

(ii) against serial number 10, in column (3), in item (i), after the condition in column (5) against

the rate of 2.5 percent, , the following condition shall be inserted, namely:-

“Provided further that where the supplier of input service in the same line of business charges

statetax at a rate higher than 2.5%, credit of input tax charged on the input service in the

same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be

taken.

Illustration: ‘A’ engages ‘B’ for transport from New Delhi to Jaipur in a motor cab for Rs.

1000. ‘B’, for supplying the said service, hires a motor cab with operator from ‘C’ for Rs.

800. ‘C’ charges ‘B’ statetax at the rate of 6% (Rs. 48). If ‘B’ charges ‘A’ statetax at the rate

of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of

business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 48.”;

(iii) against serial number 34, -

(a) in column (3), in item (iv), for the words “totalisator or a license to” , the words

“licensing a” shall be substituted;

(b) in column (3), item (v) and the entries relating thereto shall be omitted;

(B) in the Annexure: Scheme of Classification of Services,-

(i) serial number 696 and the entries relating thereto shall be omitted;

(ii) serial number 698 and the entries relating thereto shall be omitted.

2.This notification shall come into force with effect from the 20^th day of October, 2023.

By Order and in the name of the

Governor of Karnataka

(KAVITHA L)

Under Secretary to Government,

Finance Department (C.T-1)

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Date: 2023.10.25 17:24:15 +05'30'