RECENT NOTIFICATIONS ON ‘IGST’ RATE

[Mr. M. GOVINDARAJAN]

The Central Government issued seven notifications on IGST rate consequent the decisions taken by the GST Council.  These notifications came into effect from 01.01.2019.

Notification No. 25/2018-Integrated Tax (Rate)

Vide Notification No.01/2017-Integrated Tax (Rate), dated 28.06.2017 notified 6 types of rates as detailed below-

• 5 per cent. in respect of goods specified in Schedule I,
• 12 per cent. in respect of goods specified in Schedule II,
• 18 per cent. in respect of goods specified in Schedule III,
• 28 per cent. in respect of goods specified in Schedule IV,
• 3 per cent. in respect of goods specified in Schedule V, and
• 0.25 per cent. in respect of goods specified in Schedule VI.

This Notification brings amendment to the first schedules in Notification No.01/2017-Integrated Tax (Rate).

Amendments in Schedule I – 5%

• This Notification inserted new entries viz., 123A and 198A-
• 123A – 2515 11 00 – Marble and travertine, crude or roughly trimmed.
• 198A – 4501 -Natural Cork , raw, simply prepared.
• This Notification substituted new entries for the entries 224, 225, 225A.The newly substituted entries are as follows-
• 224 -
• 225 – 64 - Footwear of sale value not exceeding ₹ 1000 per pair;
• 225A - 6602 00 00 - Walking-sticks including seat sticks
• 225B – 6815 - Fly ash bricks or fly ash aggregate with 90 per cent. or more fly ash content; Fly ash blocks
• Against Sl. No. 234 in the entry in column (3), the following Explanation is inserted-

Explanation: If the goods specified in this entry are supplied, by a supplier, along with supplies of other goods and services, one of which being a taxable service specified in the entry at S. No. 38 of the Table mentioned in the notification No. 8/2017-Integrated Tax (Rate), dated 28th June, 2017 [G.S.R. 683(E)], the value of supply of goods for the purposes of this entry shall be deemed as 70% of the gross consideration charged for all such supplies, and the remaining 30% of the gross consideration charged shall be deemed as value of the said taxable service.

• Sl. No. 234A is renumbered as 234B and a new entry 234A is inserted as detailed below-
• 234A – 871420 -

Amendments in Schedule II –12%

• After sl. No. 101, the sl. Nos. 101A, 101B and 101C are inserted as detailed below-

• 101A – 4502 00 00 - Natural cork, debacked or roughly squared, or in rectangular (including square) blocks, plates, sheets or strip (including sharp-edged blanks for corks or
• 101B – 4503 - Articles of natural cork such as Corks and Stoppers, Shuttlecock cork bottom
• 101C – 4504 - Agglomerated cork (with or without a binding substance) and articles of agglomerated cork

• This Notification omitted the entries No. 102 and 126.

• 102 – 4501 -
• 126 - 4904 00 00 - Music, printed or in manuscript, whether or not bound or illustrated

• Sl. No. 171A is renumbered as 171AA and Sl. No.171A is newly inserted as detailed below-

• 171A --Flexible intermediate bulk containers

• Against S. No. 173, in the entry in column (3), the words “walking-sticks, seat-sticks,” areomitted;
• . No. 177 and the entries relating thereto, are omitted

Amendments in Schedule III –18%

• Sl. No. 121A is renumbered as 121B. Before 121B, a new entry 121A is inserted as detailed below-

• 121A – 4012 - Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, tyre treads and tyre flaps, of rubber

• S. Nos. 142, 143 and 144 and the entries relating thereto are omitted
• Against S. No. 369A, for the entry in column (3), the entry “Transmission shafts (including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints)” are substituted.
• A new entry 376AA is inserted after the entry 376A.The details of the new entry are as follows-

• 376AA – 8507 - Lithium-ion accumulators (other than battery) including lithium-ion power bank”

• Against S. No. 383, in the entry in column (3), after the words “television cameras”, the words, “digital cameras and video camera recorders”, are inserted.
• Against S. No. 384, in the entry in column (3), for the figures and word “20 inches”, the figures and word “32 inches” shall be substituted.
• Sl. No. 440A is renumbered as 440B and the new entry for 440A is inserted as detailed below-

• 440A – 9504 - Video game consoles and machines, articles of funfair, table or parlour games, including pintables, billiards, special tables for casino games and automatic bowling alley equipment [other than playing cards, ganjifa card, chess board, carom board and other board games of 9504 90 90 like ludo, etc.

Amendments in Schedule IV –28%

• The entries No. 47, 135, 151 and 215 are omitted.

• 47 – 4012- Retreaded or used tyres and flpas;
• 135 – 8483 - Transmission shafts (including cam shafts and crank shafts) and cranks (excluding crankshaft for sewing machine); gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints)
• 151 – 8525 - Digital cameras and video camera recorders [other than CCTV]
• 215 – 9504 -Video games consoles and Machines, article and accessories for billiards [9504 20 00], other games operated by coins, banknotes, i.e., casino games [9504 20 00] and others [other than board games of 9504 90 90.

• Against S. No. 139, in the entry in column (3), after the words “other than Lithium-ion battery”, the words “and other Lithium-ion accumulators including Lithium-ion power banks” are inserted.
• Sl. No. 174 is substituted for new entry as detailed below-

• 174 – 8714 - Parts and accessories of vehicles of heading 8711.

Notification No. 26/2018-Integrated Tax (Rate)

Notification No.02/2017-Integrated Tax (Rate), dated 28.06.2017 granted exemption to certain supplies.  The present Notification substituted entries for the entries 43A, 43B and inserted entries 121A and 153.  The new substituted and inserted entries are as follows-

Sl.No.	Chapter/Heading/Sub-heading/Tariff item	Description of Goods
43A	0710	Vegetables (uncooked or cooked by steaming or boiling in water), frozen
43B	0711	Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.
121A	4904 00 00	Music, printed or in manuscript, whether or not bound or illustrated
153	Any Chapter	Supply of gift items received by the President, Prime Minister, Governor or Chief Minister of any State or Union territory, or any public servant, by way of public auction by the Government, where auction proceeds are to be used for public or charitable cause.

Notification No. 27/2018-Integrated Tax (Rate)

The Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, exempted the inter-State supply of gold falling in heading 7108 of the First Schedule to the Customs Tariff Act, 1975, when supplied by Nominated Agency under the scheme for "Export Against Supply by Nominated Agency" as referred to in paragraph 4.41 of the Foreign Trade Policy, read with relevant provisions of Chapter 4 of Handbook of Procedures, to a registered person ( herein referred to as “recipient”), from the whole of the integrated tax leviable thereon, under section 5 of the Integrated Goods and Services Tax Act, 2017, subject to following conditions, namely:-

• the Nominated Agency and the recipient shall follow the conditions and observe the procedures as specified in the Foreign Trade Policy read with Handbook of Procedures;
• the recipient shall export the jewellery made out of such gold within a period of 90 (ninety) days from the date of supply of gold to such recipient and shall provide copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number (GSTIN) along with the invoice for exports to the Nominated Agency within a period of 120 (one hundred and twenty) days from the date of supply by the Nominated Agency;
• wherever such proof of export is not produced within the period mentioned in condition (ii), the Nominated Agency shall pay the amount of integrated tax payable on the quantity of gold not exported, along with interest from the date when the said tax on such supply was payable, but for the exemption.

Notification No. 28/2018-Integrated Tax (Rate)

Notification No. 08/2017-Integrated Tax (Rate), dated 28.06.2017 prescribes the IGST tax rates on services.  The present notification brings the following amendments to the Notification No. 28/2018-Integrated Tax (Rate)-

• Sl.No. 9 of the table in the Notification No.08/2017-Integrated Tax(Rate) deals with heading 9965 (Goods Transports Service).The present Notification inserted clause (iva) after clause (iv).The new entry provides that transportation of passengers, with or without accompanied baggage, by air, by non-scheduled air transport service or charter operations, engaged by specified organizations in respect of religious pilgrimage facilitated by the Government of India, under bilateral arrangement attracts 5% of tax subject to the condition that credit of input tax charged on goods used in supplying the service has not been taken.
• Sl.No. 15 of the table deals with the Heading 9971 (Financial and related services).The present Notification substitutes the new entries for (vi) and (vii).The newly substituted entries are as follows-

(vi) Service of third party insurance of “goods carriage” – 15%;

(vii) Financial and related services other than (i), (ii), (iii), (iv), (v), and (vi) above – 18%

• Sl.No. 17 of the table deals with the Heading 9973 (

• (viia) Leasing or renting of goods - Same rate of integrated tax as applicable on supply of like goods involving transfer of title in goods
• (viii) Leasing or rental services, with or without operator, other than (i), (ii), (iii), (iv), (v), (vi), (vii) and (viia) above- 18%;

• This Notification substituted tax rate as 12%(18%) for item No. (iv) of 34.After amendment the revised entry is as below-

(ii) Services by way of admission exhibition of cinematograph films where price of admission ticket is one hundred rupees or less. – 12%

• This Notification inserted entry No. 38 as detailed below-

Sl.No.	Chapter, Section or Heading	Description of Service	Rate (per cent.)	Condition
38	9954 or 9983 or 9987	Service by way of construction or engineering or installation or other technical services, provided in relation of setting up of following, - (a) Bio-gas plant (b) Solar power based devices (c) Solar power generating system (d) Wind mills, Wind Operated Electricity Generator (WOEG) (e) Waste to energy plants / devices (f) Ocean waves/tidal waves energy devices/plants Explanation:- This entry shall be read in conjunction with serial number 234 of Schedule I of the notification No. 1/2017-Integrated Tax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) dated 28th June, 2017 vide GSR number 666(E) dated 28th June, 2017.	18	NIL

• This Notification, in para 5 of the Notification No.08/2017-Integrated Tax (Rate) inserted two definitions as detailed below-

• “specified organization” shall mean, -

• Kumaon Mandal Vikas Nigam Limited, a Government of Uttarakhand Undertaking; or
• ‘Committee’ or ‘State Committee’ as defined in section 2 of the Haj Committee Act, 2002.

• “goods carriage” has the same meaning as assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988.

Notification No. 29/2018-Integrated Tax (Rate)

This Notification amended the Notification No. 09/2017- Integrated Tax (Rate), dated 28.06.2017 in which the Central Government exempted the inter-State supply of services of description as specified in column (3) of the Table given in the Notification from so much of the Integrated Tax  leviable thereon under sub-section (1) of section 5 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table.

The following are the amendments brought out in Notification No.09/2017-Integrated tax-

• The present Notification inserted item No. 22B, 28A and 77Aas detailed below-

Sl.No	Chapter, Section, Heading, Group or Service Code  (Tariff)	Description of Services	Rate (per cent.)	Condition
22B	Heading 9965 or Heading 9967	Services provided by a goods transport agency, by way of transport of goods in a goods carriage, to, - (a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (c) Governmental agencies, which has taken registration under the Central Goods and Services Tax Act, 2017 only for the purpose of deducting tax under Section 51 and not for making a taxable supply of goods or services.	NIL	NIL
28A	Heading 9971	Services provided by a banking company to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY)	NIL	NIL
77A	Heading 9993	Services provided by rehabilitation professionals recognized under the Rehabilitation Council of India Act, 1992 by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA of the Income tax Act, 1961.	NIL	NIL

• Entry No. 35A indicates -Services supplied by Central Government, State Government, Union territory to their undertakings or Public Sector Undertakings (PSUs) by way of guaranteeing the loans taken by such undertakings or PSUs from the financial institutions.

The present Notification inserted the words ‘banking companies and’ after the words ‘PSU from the’.

• This notification substitutes the Heading for the entry No. 69 – 9992.The newly substituted headings are ‘Heading 9992 or Heading 9963’.
• This notification omitted serial No. 70 and the entries relating thereto. The entry 70 deals with the Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development Programme.
• Para 2 of the Notification No. 09/2017-Integrated Tax (Rate) gives definition for various terms. The present Notification inserted a new definition vide clause (zaa) for the term ‘financial institution’. The expression ‘financial institution’ is defined as having s the same meaning as assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act, 1934

Notification No.30/2018-Integrated Tax (Rate)

This Notification amended the Notification No.10/2017-Integrated Tax (Rate), dated 28.06.2017 (dealing with Reverse charge).  The details of the amendments carried out in this Notification are as follows-

• Item No. 2 of the Notification provides for the payment of tax on reverse charge basis on the supply of services by a Good Transport Agency (
• any factory; or
• any society; or
• any co-operative society established by or under any law; or
• any person registered under CGST Act, IGST Act, SGST Act or UTGST Act; or
• any body corporate;
• any partnership firm including association of person; or
• any casual taxable person

The present Notification inserted a proviso after the item No. 2(g) which provides that nothing contained in this entry shall apply to services provided by a goods transport agency, by way of transport of goods in a goods carriage by road, to, -

• a Department or Establishment of the Central Government or State Government or Union territory; or
• Local Authority; or
• Government Agencies,

which has taken registration under the Central Goods and Services Tax Act, 2017 only for the purpose of deducting tax under section 51 and not for making a taxable supply of goods or services.

• This Notification inserted 3 entries from 14 to 16 as detailed below

Sl.No.	Category of Supply of Services	Supplier of service	Recipient of Service
	Services provided by business facilitator (BF) to a banking company	Business facilitator (BF)	A banking company, located in the taxable territory
	Services provided by an agent of business correspondent (BC) to business correspondent (BC)	An agent of business correspondent (BC)	A business correspondent, located in the taxable territory.
	Security services (services provided by way of supply of security personnel) provided to a registered person: Provided that nothing contained in this entry shall apply to, - (i)(a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (c) Governmental agencies; which has taken registration under the Central Goods and Services Tax Act, 2017 only for the purpose of deducting tax under section 51 of the said Act and not for making a taxable supply of goods or services; or (ii) a registered person paying tax under section 10 of the said Act.	Any person other than a body corporate	A registered person, located in the taxable territory.

• The Notification inserted clause (h) after clause (g) to the Explanation to this Notification. The newly inserted clause (h) provides that the provisions of this notification, in so far as they apply to the Central Government and State Governments, shall also apply to the Parliament and State Legislatures.

Notification No. 31/2019-Integrated Tax (Rate)

The Central Government, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scope and applicability of the notification No.8/2017- Integrated Tax (Rate), dated the 28th June, 2017, inserted a second explanation against serial No.9 which deals with Goods Transport Services.  The newly inserted explanation provides that nothing contained in this item shall apply to supply of a service other than by way of transport of goods from a place in India to another place in India.