GST News update 4th week of August 2017

  1. Ministry of Finance through Notification No. 20/2017- Central Tax (Rate) dated 22nd August, 2017 reduces the GST rate from 18% to 12% on specified supplies of work contract services. The key highlights of the said notification are:
    1. Composite supply of work contracts supplied to Governmental authority or Local authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration in respect of historical monuments, archaeological site, canal, dam or other irrigation works, pipeline, conduit or plant for (i) water supply, (ii) water treatment, or (iii) sewerage treatment or disposal.
    2. Composite supply of work contract by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration in relation to road, bridge for use by general public, civil structure or any other original works pertaining to specified Govt. schemes, pollution control or effluent treatment plant (except located as part of factory), or structure meant for funeral, burial or cremation of deceased.
    3. Composite supply of works contract as defined under the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, or installation of original works pertaining to  railways (other than mono rail & metro), single residential unit, low-cost houses up to carpet area of 60 square meters per house under approved housing schemes, post-harvest storage infrastructure for agricultural produce, or mechanized food grain handling system.
    4. Reduces the rates in respect of job-work for textile & textile products, printing service of books, newspapers, admission to planetarium.
    5. Services by way of any treatment or process on goods belonging to another person, in relation to- (a) printing of newspapers; (b) printing of books (including Braille books), journals and periodicals will attract GST at the rate of 5%.
    6. Also notifies the option to GTA and transport of passengers by motor-cab service providers to avail full ITC & discharge GST at 12% instead of 5% without ITC.
  2. Ministry of Finance notifies the GST exemption to services provided by Fair Price Shops to Central Govt., State Govt. or Union Territories and those provided by and to FIFA and its subsidiaries directly or indirectly related to any of the event under FIFA U-17 World Cup to be hosted in India through Notification No. 21/2017- Integrated Tax (Rate) dated 22nd August, 2017.
  3. Ministry of Finance clarifies through Notification No. 22/2017- Integrated Tax (Rate) dated 22nd August, 2017 that the “Limited Liability Partnership” formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (6 of 2009) shall also be considered as a partnership firm or a firm.
  4. Ministry of Finance notifies through Notification No. 23/2017- Integrated Tax (Rate) dated 22nd August, 2017 that the E-Commerce operators would be liable to pay GST for providing house-keeping services such as plumbing, carpentering, etc.