Levy of GST on Priority Sector Lending Certificate notified under RCM

Levy of GST on Priority Sector Lending Certificate notified under RCM

As perCircular No. 34/8/2018-GST dated 1st March 2018 it was clarified thatPSLC are not securities. PSLC are akin to freely tradeable duty scrips, Renewable Energy Certificates, REP license or replenishment license, which attracted GST.

As per that Circular PSLCs are taxable as goods at standard rate of 18% under the residuary S. No. 453 of Schedule III of notification No. 1/2017-Central Tax(Rate). GST payable on the certificates would be available as ITC to the bank buying the certificates.

Levy of GST on Priority Sector Lending Certificate has now been notified under Reverse Charge Mechanism (RCM) The notification is given below for your reference :

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Levy of GST on Priority Sector Lending Certificate notified under RCM

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Revenue)

Notification No. 11/2018-Central Tax (Rate)

New Delhi, the May 28th 2018

G.S.R. (E).- In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.4/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 676 (E), dated the 28th June, 2017, namely:- In the said notification, after S. No. 6 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: - TABLE

S.No.	Tariff item, sub-heading, heading orChapter	Description of Goods	Supplier of goods	Recipient of supply
(1)	(2)	(3)	(4)	(5)
7.	Any Chapter	Priority Sector Lending Certificate	Any registered person	Any registered person

 

[F. No. 354/124/2018- TRU]

(Pramod Kumar)

Deputy Secretary to Government of India

Note: - The principal notification No.4/2017-Central Tax (Rate), dated the 28th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 676(E), dated the 28th June, 2017 and last amended by Notification No. 43/2017-Central Tax(Rate) dated 14th November, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1389 (E), dated the 14th November, 2017.