SERIES II No. 19
PUBLISHED BY AUTHORITY
RNI No. GOAENG/2002/6410
Reg. No. RNP/GOA/32/2021-2023
GOVERNMENT OF GOA
Department of Finance
Office of the Commissioner of Commercial Taxes
__
No. CCT/26-4/2023-24/G/1486
Subject: Clarification regarding applicability of GST
on certain services—reg.
Ref.: Circular No. 201/13/2023-GST dated 1st August,
2023 issued under Central Goods and Services
Tax Act, 2017 by the Department of Revenue,
Ministry of Finance, GOI, New Delhi.
Circular
(No. 10/2023-24-GST)
The Department of Revenue, Ministry of Finance,
GOI, New Delhi, has issued the above referred
circular. For the uniformity and in exercise of the
powers conferred under Section 168 of the Goa
Goods and Services Tax Act, 2017 (Goa Act 4 of
2017), it is hereby directed that the said Circular
issued by the Department of Revenue, Ministry of
Finance, GOI shall be applicable, mutatis mutandis,
in implementation of the Goa Goods and Services
Tax Act, 2017 (Goa Act 4 of 2017). Copy of the above
referred Circular is attached herewith as Annexure.
This Trade Circular is clarificatory in nature.
Difficulty, if any, in implementation of this Circular
may please be brought to the notice of the
undersigned.
S. S. Gill, IAS, Commissioner of State Taxes, Goa.
Panaji, 16th August, 2023.
Panaji, 16th August, 2023 (Sravana 25, 1945)
Circular No. 201/13/2023-GST
F. No. 190354/133/2023-TRU
Government of India
Ministry of Finance
Department of Revenue
North Block, New Delhi
Dated the 1st August, 2023.
To,
The Principal Chief Commissioners/Chief
Commissioners/Principal Commissioners/Commissioners
of Central Tax (All).
The Principal Directors General/Directors
General (All).
Madam/Sir,
Subject: Clarification regarding applicability of GST
on certain services—reg.
Representations have been received seeking
clarifications on the following issues:
1. Whether services supplied by director of a
company in his personal capacity such as
renting of immovable property to the company
or body corporate are subject to Reverse
Charge Mechanism;
2. Whether supply of food or beverages in cinema
hall is taxable as restaurant service.
The above issues have been examined by GST
Council in the 50th meeting held on 11th July, 2023.
The issue-wise clarifications as recommended by
the Council are given below:
Whether services supplied by director of a
company in his personal capacity such as renting
of immovable property to the company or body
corporate are subject to Reverse Charge Mechanism:
Suggestions are welcomed on e-mail: [email protected]
475
EXTRAORDINARY
OFFICIAL GAZETTE — GOVT. OF GOA
SERIES II No. 19
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16TH AUGUST, 2023
476
2. Reference has been received requesting for
clarification whether services supplied by a director
of a company or body corporate in personal or
private capacity, such as renting of immovable
property to the company, are taxable under Reverse
Charge Mechanism (RCM) or not.
2.1 Entry No. 6 of notification No. 13/2017 CTR
dated 28-06-2017 provides that tax on services
supplied by director of a company or a body
corporate to the said company or the body
corporate shall be paid by the company or the body
corporate under Reverse Charge Mechanism.
2.2 It is hereby clarified that services supplied
by a director of a company or body corporate to the
company or body corporate in his private or personal
capacity such as services supplied by way of renting
of immovable property to the company or body
corporate are not taxable under RCM. Only those
services supplied by director of company or body
corporate, which are supplied by him as or in the
capacity of director of that company or body
corporate shall be taxable under RCM in the hands
of the company or body corporate under notification
No. 13/2017-CTR (Sl. No. 6) dated 28-06-2017.
Whether supply of food or beverages in cinema
hall is taxable as restaurant service:
3. References have been received requesting for
clarification whether supply of food and beverages
at cinema halls is taxable as restaurant service
which attract GST at the rate of 5% or not.
3.1 As per Explanation at Para 4 (xxxii) to
notification No. 11/2017-CTR dated 28-06-2017,
“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.
3.2 Eating joint is a wide term which includes
refreshment or eating stalls/kiosks/counters or
restaurant at a cinema also.
3.3 The cinema operator may run these
refreshment or eating stalls/kiosks/counters or
restaurant themselves or they may give it on
contract to a third party. The customer may like to
avail the services supplied by these refreshment/
/snack counters or choose not to avail these
services. Further, the cinema operator can also
install vending machines, or supply any other
recreational service such as through coin-operated
machines etc. which a customer may or may not
avail.
3.4 It is hereby clarified that supply of food or
beverages in a cinema hall is taxable as ‘restaurant
service’ as long as:
a) the food or beverages are supplied by way of
or as part of a service, and
b) supplied independent of the cinema
exhibition service.
3.5 It is further clarified that where the sale of
cinema ticket and supply of food and beverages are
clubbed together, and such bundled supply satisfies
the test of composite supply, the entire supply will
attract GST at the rate applicable to service of
exhibition of cinema, the principal supply.
4. Difficulties, if any, in implementation of this
circular may be brought to the notice of the Board.
(Rajeev Ranjan), Under Secretary (TRU).
————
No. CCT/26-4/2023-24/G/1487
Subject: Clarification regarding GST rates and
classification of certain goods based on
the recommendations of the GST Council
in its 50th meeting held on 11th July,
2023—reg.
Ref.: Circular No. 200/12/2023-GST dated 1st August,
2023 issued under Central Goods and Services
Tax Act, 2017 by the Tax Research Unit,
Department of Revenue, Ministry of Finance,
GOI, New Delhi.
Circular
(No. 09/2023-24-GST)
The Tax Research Unit (TRU), Department of
Revenue, Ministry of Finance, GOI, New Delhi, has
issued the above referred circular. For the
uniformity and in exercise of the powers conferred
under Section 168 of the Goa Goods and Services
Tax Act, 2017 (Goa Act 4 of 2017) it is hereby
directed that the said Circular issued by the TRU
shall be applicable, mutatis mutandis, in
implementation of the Goa Goods and Services Tax
Act, 2017 (Goa Act 4 of 2017). Copy of the above
referred Circular is attached herewith as Annexure.
This Trade Circular is clarificatory in nature.
Difficulty, if any, in implementation of this Circular
may please be brought to the notice of the
undersigned.
S. S. Gill, IAS, Commissioner of State Taxes, Goa.
Panaji, 16th August, 2023.
OFFICIAL GAZETTE — GOVT. OF GOA
SERIES II No. 19
(EXTRAORDINARY)
16TH AUGUST, 2023
477
Circular No. 200/12/2023-GST
F. No. 190354/140/2023-TRU
Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)
North Block, New Delhi
Dated the 1st August, 2023.
To,
The Principal Chief Commissioners/Chief
Commissioners/Principal Commissioners/Commissioners
of Central Tax (All).
The Principal Directors General/Directors
General (All).
Madam/Sir,
Subject: Clarification regarding GST rates and
classification of certain goods based on
the recommendations of the GST Council
in its 50th meeting held on 11th July,
2023—reg.
Based on the recommendations of the GST
Council in its 50th meeting held on 11th July, 2023,
clarifications with reference to GST levy related to
the following items are being issued through this
circular:
i. Un-fried or un-cooked snack pellets, by
whatever name called, manufactured through
process of extrusion;
ii. Fish Soluble Paste;
iii. Desiccated coconut;
iv. Biomass briquettes;
v. Imitation zari thread or yarn known by any
name in trade parlance;
vi. Supply of raw cotton by agriculturist to
co-operatives;
vii. Plates, cups made from areca leaves;
viii. Goods falling under HSN heading 9021.
2. Applicability of GST on un-fried or un-cooked
snack pellets, by whatever name called,
manufactured through process of extrusion:
2.1 In the 48th meeting of the GST Council, it
was clarified that the snack pellets (such as
‘fryums’), which are manufactured through the
process of extrusion, are appropriately classifiable
under tariff item 1905 90 30, which covers goods
with description ‘Extruded or expanded products,
savoury or salted’, and thereby attract GST at the
rate of 18% vide S. No. 16 of Schedule-III of
notification No. 1/2017-Central Tax (Rate) dated the
28th June, 2017.
2.2 In view of the recommendation of the GST
Council in the 50th meeting, supply of un-cooked/
/un-fried extruded snack pellets, by whatever name
called, falling under CTH 1905 will attract GST rate
of 5% vide S. No. 99B of Schedule I of notification
No. 1/2017-Central Tax (Rate) dated the 28th June,
2017 with effect from 27th July, 2023. Extruded
snack pellets in ready-to-eat form will continue to
attract 18% GST under S. No. 16 of Schedule III of
notification No. 1/2017-Central Tax (Rate) dated the
28th June, 2017.
2.2 Further, in view of the prevailing genuine
doubts regarding the applicability of GST rate on
the un-fried or un-cooked snack pellets, by
whatever name called, manufactured through
process of extrusion, the issue for past period upto
27-07-2023 is hereby regularized on “as is” basis.
3. Applicability of GST on Fish Soluble Paste:
3.1 Fish soluble paste attracted 18% under the
residual entry S. No. 453 of Schedule III of
notification No. 1/2017-Central Tax (Rate) dated the
28th June, 2017. As per recommendation of the
GST Council, GST on fish soluble paste, falling
under CTH 2309, has been reduced to 5%.
Accordingly, the rate has been notified vide S. No.
108A with effect from 27th July, 2023.
3.2 Further, in view of the prevailing genuine
doubts regarding the applicability of GST rate on
fish soluble paste, the issue for past period upto
27-07-2023 is hereby regularized on “as is” basis.
4.Desiccated coconut—Regularisation of the
issue for past period from 01-07-2017 up to and
inclusive of 27-07-2017:
As per recommendation of the GST Council, in
view of the prevailing genuine interpretational
issues regarding the applicability of GST rate on
the desiccated coconut, falling under CTH 0801,
the issue for past period from 01-07-2017 up to and
inclusive of 27-07-2017 is hereby regularized on “as
is” basis.
5.Biomass briguettes—Regularisation of the issue
for past period from 01-07-2017 up to and inclusive
of 12-10-2017:
As per recommendation of the GST Council, in
view of the prevailing genuine interpretational
issues regarding the applicability of GST rate on
the Biomass briquettes, falling under any chapter,
the issue for past period from 01-07-2017 up to and
inclusive of 12-10-2017 is hereby regularized on “as
is” basis.
OFFICIAL GAZETTE — GOVT. OF GOA
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6.Supply of raw cotton by agriculturist to
co-operatives:
6.1
As per recommendation of the GST Council,
it is hereby clarified that supply of raw cotton,
including kala cotton, from agriculturists to
co-operatives is a taxable supply and such supply
of raw cotton by agriculturist to the co-operatives
(being a registered person) attracts 5% GST on
reverse charge basis under notification No. 43/2017-
Central Tax (Rate) dated 14th November, 2017.
6.2
In view of prevailing genuine doubts, the
issue for the past periods prior to issue of this
clarification is hereby regularized on “as is basis”.
7. GST rate on imitation zari thread or yarn known
by any name in trade parlance:
7.1 In the 15th Council meeting, the Council
agreed to tax embroidery or zari articles i.e., imi,
zari, kasab, saima, dabka, chumki, gota, sitara, naqsi,
kora, glass beads, badla, gizai at the rate of 5%.
Based on the recommendation of the 28th GST
Council, it was clarified that imitation zari thread
or yarn known as “Kasab” or by any other name in
trade parlance, would attract a uniform GST rate of
12% under tariff heading 5605.
7.2 As per the recommendation of the GST
Council in its 50th meeting, GST on imitation zari
thread or yarn known by any name in trade parlance
has been reduced from 12% to 5%. Accordingly, the
rate has been notified vide S. No. 218AA with effect
from 27th July, 2023.
7.2. In view of the confusion in the trade
regarding the applicability of GST rate on these
products, the issue for past period upto 27-07-2023
is hereby regularized on “as is” basis.
8. Plates, cups made from areca leaves:
As per the recommendation of the GST Council,
issues relating to GST on plates and cups made
from areca leaves are hereby regularized on “as is
basis” for the period prior to 01-10-2019.
9. GST rate on goods falling under HSN 9021:
9.1 Representations have been received seeking
clarification regarding the GST rates applicable on
trauma, spine and arthroplasty implants falling
under HSN heading 9021 for the period before
18-07-2022 stating that there are interpretational
issues due to the duality of rates on similar items
leading to ambiguity. The issue has arisen as prior
to 18-07-2022 there existed two rates on the goods
falling under HSN heading 9021 as per S. No. 257 of
Schedule I and S. No. 221 of Schedule II of notification
No. 01/2017-CT (Rate) dated 28-06-2017.
9.2 The issue was examined by GST Council in
its 47th meeting and as per its recommendations,
a single uniform rate of 5% was prescribed for such
goods [except hearing aid, which continued to
attract Nil under S. N. 142 of 02/2017-CT(Rate)]
falling under HSN heading 9021 with effect from
18-07-2022.
9.3. As per recommendations of the GST council
in its 50th Meeting, it is hereby clarified that the
GST rate on all such goods falling under heading
9021 would attract a GST rate of 5% and in view of
prevailing genuine doubts, the issue for the past
periods is hereby regularized on “as is basis”.
However, it is clarified that no refunds will be
granted in cases where GST has already been paid
at higher rate of 12%.
10. It is further clarified that no refunds will be
granted where GST has already been paid in any of
the above cases.
11. Difficulty if any, in the implementation of this
circular may be brought to the notice of the Board.
(Nitin Gupta), Technical Officer (TRU-I).
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