SERIES II No. 30
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/2613
Subject: Clarifications regarding applicability of
GST on certain services–reg.
Ref.:
Circular No. 206/18/2023-GST dated 31st
October, 2023 issued under Central Goods
and Services Tax Act, 2017 by the Tax
Research Unit, Department of Revenue,
Ministry of Finance, Government of India
New Delhi.
Circular
(No. 15/2023-24-GST)
The Tax Research Unit, Department of Revenue,
Ministry of Finance, Government of India, New Delhi
has issued the above referred Circular.
For the uniformity in implementation 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 Tax Research Unit,
Department of Revenue, Ministry of Finance,
Government of India, shall be applicable, mutatis
mutandis, in implementation of the Goa Goods and
Services Tax Act, 2017 (Goa Act 4 of 2017).
A copy of the above referred Circular is attached
herewith as Annexure.
Panaji, 1st November, 2023 (Kartika 10, 1945)
Difficulty, if any, in implementation of this Circular
may please be brought to the notice of the
undersigned.
Given under the seal of this office.
Vishant S. N. Gaunekar, Commissioner of State
Taxes, Goa.
Panaji, 1st November, 2023.
————
ANNEXURE
Circular No. 206/18/2023-GST
F. No. CBIC-190354/195/2023-TO(TRU-II)-CBEC
Government of India
Ministry of Finance
Department of Revenue
(Taxes Research Unit)
North Block, New Delhi,
Dated the 31st October, 2023.
To,
The Pr. Chief Commissioners/Chief Commissioners/
/Principal Commissioners/Commissioners of Central Tax
(All)/The Principal Directors General/Directors
Generals (All).
Madam/Sir,
Subject:
Clarifications regarding applicability of
GST on certain services-reg.
Based on the recommendations of the GST
Council in its 52nd meeting held on 7th October
2023 at New Delhi, clarification, with reference to
GST levy, related to the following issues are being
issued through this circular.
EXTRAORDINARY
No. 4
Suggestions are welcomed on e-mail: [email protected]
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OFFICIAL GAZETTE — GOVT. OF GOA
SERIES II No. 30
(EXTRAORDINARY No. 4)
1ST NOVEMBER, 2023
788
i.
Whether ‘same line of business’ in case of
passenger transport service and renting of motor
vehicles includes leasing of motor vehicles
without operators.
ii. Whether GST is applicable on reimbursement of
electricity charges received by real estate
companies, malls, airport operators etc., from their
lessees/occupants.
iii. Whether job work for processing of “Barley” into
“Malted Barley” attracts GST @ 5% as
applicable to “job work in relation to food and
food products” or 18% as applicable on “job work
in relation to manufacture of alcoholic liquor for
human consumption”.
iv. Whether District 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.
v.
Whether supply of pure services and composite
supplies by way of horticulture/horticulture works
(where the value of goods constitutes not more
than 25 percent 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 28-06-2017.
2. Whether ‘same line of business’ in case
of passenger transport service and renting of
motor vehicles includes leasing of motor
vehicles without operators.
2.1 Services of transport of passengers by any motor
vehicle (SAC 9964) and renting of motor vehicle
designed to carry passengers with operator (SAC
9966), where the cost of fuel is included in the
consideration charged from the service recipient
attract GST at the rate of 5% with input tax credit
of services in the same line of business.
2.2 Same line of business as stated in the
notification No. 11/2017-Central Tax (Rate) means
“service procured from another service provider of
transporting passengers in a motor vehicle or renting
of a motor vehicle”.
2.3 It is hereby clarified that input services in the
same line of business include transport of
passengers (SAC 9964) or renting of motor vehicle
with operator (SAC 9966) and not leasing of motor
vehicles without operator (SAC 9973) which
attracts GST and/or compensation cess at the same
rate as supply of motor vehicles by way of sale.
3. Whether GST is applicable on reimbursement
of electricity charges received by real estate
companies, malls, airport operators etc, from their
lessees/occupants.
3.1 Doubts were raised on the applicability of
GST on supply of electricity by the real estate
companies, malls, airport operators etc., to their
lessees or occupants.
3.2 It is clarified that whenever electricity is
being supplied bundled with renting of
immovable property and/or maintenance of
premises, as the case may be, it forms a part of
composite supply and shall be taxed
accordingly. The principal supply is renting of
immovable property and/or maintenance of
premise, as the case may be, and the supply of
electricity is an ancillary supply as the case
may be. Even if electricity is billed separately,
the supplies will constitute a composite supply
and therefore, the rate of the principal supply
i.e., GST rate on renting of immovable property
and/or maintenance of premise, as the case may
be, would be applicable.
3.3 However, where the electricity is supplied
by the Real Estate Owners, Resident Welfare
Associations (RWAs), Real Estate Developers
etc., as a pure agent, it will not form part of
value of their supply. Further, where they charge
for electricity on actual basis that is, they charge
the same amount for electricity from their
lessees or occupants as charged by the State
Electricity Boards or DISCOMs from them, they
will be deemed to be acting as pure agent for
this supply.
4. Whether job work for processing of “Barley”
into “Malted Barley” attracts GST @ 5% as
applicable to “job work in relation to food and
food products” or 18% as applicable on “job
work in relation to manufacture of alcoholic
liquor for human consumption”.
4.1 References have been received to clarify
whether services by way of job work for
conversion of barley into malt attracts GST at
5% prescribed for “job work in relation to all
food and food products falling under Chapter 1
to 22 of the customs tariff” or at the rate of 18%
prescribed for “services by way of job work in
relation to manufacture of alcoholic liquor for
human consumption”.
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OFFICIAL GAZETTE — GOVT. OF GOA
SERIES II No. 30
(EXTRAORDINARY No. 4)
1ST NOVEMBER, 2023
4.2 Malt is a food product. It can be directly
consumed as part of food preparations or can be
used as an ingredient in food products and also
used for manufacture of beer and alcoholic liquor
for human consumption. However, irrespective of
end-use, conversion of barley into malt amounts
to job work in relation to food products.
4.3 It is hereby clarified that job work services in
relation to manufacture of malt are covered by
the entry at Sl. No. 26 (i) (f) which covers “job
work in relation to all food and food products
falling under chapters 1 to 22 of the customs
tariff” irrespective of the end use of that malt
and attracts 5% GST.
5. Whether District 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.
5.1 DMFTs work for the interest and benefit of
persons and areas affected by mining related
operations by regulating receipt and expenditure
from the respective Mineral Development Funds
created in the concerned district. They provide
services related to drinking water supply,
environment protection, health care facilities,
education, welfare of women and children, supply
of medical equipment etc.
5.2 These activities are similar to activities that
are enlisted in Eleventh Schedule and Twelfth
Schedule of the Constitution. The ultimate users
of the various schemes under DMF are individuals,
families, women and children, farmers/producer
groups, SHGs of the mining affected areas etc.
The services/supplies out of DMF fund are
provided free of charge and no consideration is
realized from the beneficiaries by DMF against
such services.
5.3 Accordingly, it is clarified that DMFT 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.
6. Whether 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 28-06-2017.
6.1 Public parks in government residential
colonies, government offices and other public
areas are developed and maintained by CPWD.
6.2 Maintenance of community assets, urban
forestry, protection of the environment and
promotion of ecological aspects are functions
entrusted to Panchayats and Municipalities under
Article 243G and 243W read with Sr. No. 29 of
11th Schedule and Sr. No. 8 of 12th Schedule of
the constitution.
6.3 Sr. No. 3 and 3A of notification No. 12/2017-
-CTR exempt pure services and composite supply
of goods and services in which value of goods
does not constitute more than 25%, that are
provided to the Central Government, State
Government or Union territory or local authority
by way of any activity in relation to any function
entrusted to a Panchayat under article 243G of
the Constitution or in relation to any function
entrusted to a Municipality under article 243 W of
the Constitution.
6.4 Accordingly, it is clarified that 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
28-06-2017.
7. Difficulties, if any, in implementation of this
circular may be brought to the notice of the Board.
Rajeev Rajan, Under Secretary (TRU).
————
No. CCT/26-4/2023-24/G/2614
Subject:
Clarification regarding GST rate on
imitation Zari thread or yarn based on
the recommendation of GST Gouncil in
its 52nd meeting held on 7th October,
2023-reg.-
Ref.: Circular No. 205/17/2023-GST dated 31st
October, 2023 issued under the Central Goods
and Services Tax Act, 2017 by the Tax
Research Unit, Department of Revenue,
Ministry of Finance, Government of India, New
Delhi.
OFFICIAL GAZETTE — GOVT. OF GOA
SERIES II No. 30
(EXTRAORDINARY No. 4)
1ST NOVEMBER, 2023
790
Circular
(No. 14/2023-24-GST)
The Tax Research Unit, Department of Revenue,
Ministry of Finance, Government of India, New Delhi
has issued the above referred Circular.
For the uniformity in implementation 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 Tax Research Unit,
Department of Revenue, Ministry of Finance,
Government of India, shall be applicable, mutatis
mutandis, in implementation of the Goa Goods and
Services Tax Act, 2017 (Goa Act 4 of 2017).
A copy of the above referred Circular is attached
herewith as Annexure.
Difficulty, if any, in implementation of this
Circular may please be brought to the notice of the
undersigned.
Given under the seal of this office.
Vishant S. N. Gaunekar, Commissioner of State
Taxes, Goa.
Panaji, 1st November, 2023.
————
ANNEXURE
Circular No. 205/17/2023-GST
F. No. CBIC-190354/195/2023-TO(TRU-II)
Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)
North Block, New Delhi,
Dated the 31st October, 2023.
To,
The Principal Chief Commissioners/Principal
Directors General, Chief Commissioners/Directors
General, Principal Commissioners/Commissioners of
Central Excise and Central Tax.
Madam/Sir,
Subject:
Clarification regarding GST rate on
imitation Zari thread or yarn based on
the recommendation of the GST Gouncil
in its 52nd meeeting held on 7th October,
2023-reg.
The GST Council in its 50th meeting had
recommended reduction of GST rate to 5% on
imitation zari thread or yarn known by any name in
trade parlance, following which Sl. No. 218AA had
been inserted in Schedule I of notification No. 1/
/2017-Central Tax (Rate) dated 28-6-2017.
2. Doubts have been raised whether metal
coated plastic film converted to metallised yarn
and twisted with nylon, cotton, polyester or any
other yarn to make imitation zari thread is covered
under Sl. No. 218AA of Schedule I covering imitation
zari thread or yarn and attracting 5% GST, or under
Sl No. 137 of Schedule III covering other metallised
yarn attracting 12% GST. As per HS Explanatory
Notes, the heading 5605 covers-(1) yarn consisting
of any textile material (including monofilament,
strip and the like and paper yarn) combined with
metal thread or strip, whether obtained by a process
of twisting, cabling or by gimping, whatever the
proportion of the metal present (2) yarn of any textile
material (including monofilament, strip and the like
and paper yam) covered with metal by any other
process including yarn covered with metal by
electro-deposition. The heading also covers
products consisting of a core of metal foil (generally
of aluminum) or of a core of plastic film coated with
metal dust, sandwiched by means of an adhesive
between two layers of plastic film.
3. In light of the above, the GST Council has
recommended to clarify that imitation zari thread
or yarn made from metallised polyester film/plastic
film falling under HS 5605 are covered by Sl No.
218AA of Schedule I attracting 5% GST. The GST
Council has also recommended that no refund will
be permitted on polyester film (metallised/plastic
film on a ccount of inversion of tax rate. Requisite
changes have been made in notification No. 5/2017-
-Central Tax (Rate) vide Notification No. 20/223-
-Central Tax (Rate) dated 19-10-2023.
4. Difficulty if any, in the implementation of this
circular may be brought to the notice of the Board.
Sd/- Dibyalok, Technical Officer (TRU).
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