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TMI BlogClarifications regarding applicable GST rates and exemptions on certain servicesX X X X Extracts X X X X X X X X Extracts X X X X ..... ginned form is covered under entry 24B of Go. Ms. No. 588, Revenue (CT-II) Department, dated December 12, 2017 which exempted services by way of storage and warehousing of raw vegetable fibres such as cotton before July 18, 2022 ? ; 4. Whether exemption under Sl. No. 9B of Notification issued in Go. Ms. No. 588, Revenue (CT-II) Department, dated December 12, 2017 covers services associated with transit cargo both to and from Nepal and Bhutan ? ; 5. Applicability of GST on sanitation and conservancy services supplied to Army and other Central and State Government departments ; 6. Whether the activity of selling of space for advertisement in souvenirs is eligible for concessional rate of five per cent.? ; 7. Taxability and applicable rate of GST on transport of minerals from mining pit head to railway siding, beneficiation plant, etc., by vehicles deployed with driver for a specific duration of time ; 8. Whether location charges or preferential location charges (PLC) collected in addition to the lease premium for long term lease of land constitute part of the lease premium or up front amount charged for long term lease of land and are eligible for the same tax treatment ? ; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... past cases of payment of GST on supply of ice-cream by ice-cream parlours at five per cent. without ITC shall be treated as fully GST paid to avoid unnecessary litigation. Since the decision is only to regularize the past practice, no refund of GST shall be allowed, if already paid at 18 per cent. With effect from October 6, 2021, the ice cream parlours are required to pay GST on supply of ice-cream at the rate of 18 per cent. with ITC. 4. Applicability of GST on application fee charged for entrance or the fee charged for issuance of eligibility certificate for admission or for issuance of migration certificate by educational institutions 4.1 Representations have been received regarding applicability of GST on application fee charged for entrance or the fee charged for issuance of eligibility certificate for admission or for issuance of migration certificate by educational institutions. 4.2 In this regard, it is stated that educational services supplied by educational institutions to its students are exempt from GST vide entry 66 of Go. Ms. No. 588, Revenue (CT-II) Department, dated December 12, 2017 relevant portion of which reads as under :-- "Services provided-- (a) by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r : "Cotton (with seeds) as plucked from cotton plants can hardly be called cotton fibre in which case cotton fibre would come into existence only after the seeds are ginned away from cotton plucked from cotton plants. Cotton fibre obtained by ginning cotton plucked cotton plants is nothing but raw cotton fibre because there cannot be rawer form of cotton fibre obtained from cotton-with-seeds plucked from cotton plants." 5.3 Accordingly, it is clarified that service by way of storage or warehousing of cotton in ginned and or baled form was covered under entry 24B of Go. Ms. No. 588, Revenue (CT-II) Department, dated December 12, 2017 in the category of raw vegetable fibres such as cotton. It may however be noted that this exemption has been withdrawn with effect from July 18, 2022. 6. Whether exemption under Sl. No. 9B of Go. Ms. No. 588, Revenue (CT-II) Department, dated December 12, 2017 covers services associated with transit cargo both to and from Nepal and Bhutan. 6.1 Representations have been received regarding applicability of GST on transportation of empty containers returning from Nepal and Bhutan after delivery of transit cargo, to India. 6.2 GST on supply of servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be followed in addition to the ensuring that an electronic track and trace facility is in place. This facility uses container numbers to locate the cargo. Thus, it is verifiable that the empty container returning from Nepal or Bhutan is the same container which was used to deliver goods to Nepal or Bhutan. 7. Applicability of GST on sanitation and conservancy services supplied to Army and other Central and State Government Departments 7.1 Representations have been received regarding taxability of sanitation and conservancy services supplied to army and other Central and State Government Departments. 7.2 Municipalities and Panchayats and other local authorities such as Cantonment Boards listed in section 2(69) of the Andhra Pradesh Goods and Services Tax Act, 2017 carry out functions entrusted to them under articles 243W and 243G of the Constitution respectively. Functions that may be entrusted to panchayats and municipalities are listed in Schedules 11 and 12 of the Constitution. Central Government, State Governments and Union Territories also perform functions listed in Schedules 11 and 12 such as irrigation, public health, etc. 7.3 Services by Central Government, State Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... printed. 8.4 It therefore appears that 'book' has been defined in the Press and Registration of Books Act, 1867 in an inclusive manner with a wide ambit which would cover souvenir book also. 8.5 Accordingly, as recommended by the GST council, it is clarified sale of space for advertisement in souvenir book is covered under serial number (i) of entry 21 of Go. Ms. No. 259, Revenue (CT-II) Department, dated June 29, 2017 and attracts GST at five per cent. 9. Taxability and applicable rate of GST on transport of minerals from mining pit head to railway siding, beneficiation plant, etc., by vehicles deployed with driver for a specific duration of time. 9.1 Representations have been received to clarify the taxability of transport of minerals within a mining area, say from mining pit head to railway siding, beneficiation plant, etc., by vehicles deployed with driver for a specific duration of time and whether the same would be covered under Sl. No. 18 of Ms. No. 588, Revenue (CT-II) Department, dated December 12, 2017 which exempts transport of goods by road except by a GTA. 9.2 Usually in such cases the vehicles such as tippers, dumpers, loader, trucks, etc., are given on hire to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease (of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 20 per cent or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area", is exempt from GST 10.3 Allowing choice of location of plot is integral part of supply of long-term lease of plot and therefore, location charge is nothing but part of consideration charged for long term lease of plot. Being charged up front along with the up front amount for the lease, the same is exempt. 10.4 Accordingly, as per recommendation of the GST council, it is clarified that location charges or preferential location charges (PLC) paid up-front in addition to the lease premium for long term lease of land constitute part of up-front amount charged for long term lease of land and are eligible for the same tax treatment, and thus eligible for exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l charges from vehicles not having fastag is essentially payment of toll for allowing access to roads or bridges to such vehicles and may be given the same treatment as given to toll charges. 13. Applicability of GST on services in form of Assisted Reproductive Technology (ART)/In vitro fertilization (IVF) 13.1 Representations have been received to clarify whether GST is applicable on services by way of Assisted Reproductive Technology (ART) procedures such as In vitro fertilization (IVF). 13.2 Health care services provided by a clinical establishment, an authorized medical practitioner or para-medics are exempt. (Sl. No. 74 of Go. Ms. No. 588, Revenue (CT-II) Department, dated December 12, 2017 . 13.3 Health care services is defined vide 2(zg) of Go. Ms. No. 588, Revenue (CT-II) Department, dated December 12, 2017 as-- "health care services" means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 15.4 'Passenger transport services' on the other hand fall under Heading 9964. According to the explanatory notes Heading 9964 covers passenger transport services over pre-determined routes on pre-determined schedules. 15.5 Therefore, a clear distinction exists in service of transport of passengers and renting of a vehicle that is used for transport. 15.6 Accordingly, as recommended by the GST council, it is clarified that where the body corporate hires the motor vehicle (for transport of employees, etc.) for a period of time, during which the motor vehicle shall be at the disposal of the body corporate, the service would fall under Heading 9966, and the body corporate shall be liable to pay GST on the same under RCM. It may be seen that reverse charge thus would apply on act of renting of vehicles by body corporate and in such a case, it is for the body corporate to use in the manner as it likes subject to agreement with the person providing vehicle on rent. 15.7 However, where the body corporate avails the passenger transport service for specific journeys or voyages and does not take vehicle on rent for any particular period of time, the service would fall under Heading 996 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oning of a 2.00 LLPD dairy plant, it has been held by Advance Ruling Authorities of Bihar and Gujarat that the same does not result into an immovable property and is therefore not a supply of works contract. This being so, such supply is not eligible for concessional rate of 12 per cent. applicable on works contract supplied by way of construction, erection, commissioning, or installation of original works pertaining to mechanized food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages. 17.3 In this regard, it may be seen that prior to July 18, 2022. serial number 3(v)(f) of Go. Ms. No. 259, Revenue (CT-II) Department, dated June 29, 2017 prescribes GST rate of 12 per cent. on the composite supply of works contract by way of construction, erection, commissioning, or installation of original works pertaining to mechanized food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages. 17.4 It is clarified that a contract of the nature described here for construction, installation and commissioning of a dairy plant constitutes su ..... 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