Reetu | Jul 12, 2023 |
GST Council Meeting Recommendations: Changes in GST rates on Services
In the 50th Meeting of the GST Council held on 11th July 2023, following recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST were made.
Recommendations relating to GST rates on Services
To promote start-ups, it has been decided that the GST exemption on satellite launch services provided by ISRO, Antrix Corporation Limited, and New Space India Limited (NSIL) be extended to similar services provided by private sector entities as well.
As a trade-friendly policy, GTAs would no longer be needed to make a declaration for paying GST under advance charge every year. If they exercised this option for a certain financial year, they will be presumed to have exercised it for the next and subsequent financial years until they make a statement stating that they intend to revert to the reverse charge mechanism (RCM).
It has also been decided that the deadline for GTAs to exercise their option to pay GST under forward charge would be the 31st March of the prior Financial Year, rather than the 15th March. The option shall be exercisable beginning on January 1st of the prior financial year.
It has been decided to clarify that services given to a business by a director in his private or personal capacity, such as renting immovable property to the company or body corporate, are not taxable under RCM. Only services provided by a director of a company or body corporate in his capacity as or as a director of that company or body corporate are taxable in the hands of the company or body corporate under notification No. 13/2017-CTR (Sl. No. 6) dated 28.06.2017.
It has been agreed to clarify that the supply of food and drinks in movie halls is taxed as restaurant service if (a) they are offered as part of or in addition to a service and (b) they are supplied independently of the cinema exhibition service.
Where the sale of a movie ticket and the supply of food and drinks are combined, and the bundled supply meets the composite supply test, the entire supply will be subject to GST at the rate applicable to the service of cinema exhibition, the primary supply.
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