Author's notes and comments:
1- Many changes in the rates related to JOB WORK and provided relief to the small workers/ units,
2- Schedule II , clause 6 b states that the "(b) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for
cash, deferred payment or other valuable consideration" which was earlier required to meet composition threshold which also need to consider all EXEMPT items which such service provider do and hence many such service providers were unable to get the benefit of the composition scheme and hence the EXEMPTED SUPPLIES will be now excluded while calculating the eligibility to get composition scheme,
3- Normally GTA does not require to make registration and in cases where any supplies are being made by such GTA, the liability to pay RCM lies on recipient however in case of UNREG recipient than such RCM was to paid by GTA which has now been exempted.
GTA > To any Unreg recipient or Unreg Casual taxable person > Exempt from RCM
4- Leasing of vehicles purchased and leased prior to 1.7.2017, shall be taxed at 65% of the applicable GST + Cess rate. This reduced rate would be applicable for a period of 3 years with effect from 1st July 2017 and this applies to cases where it is being disposed off,
5- Sale by way of auction of seized goods/ vehicle etc by govt & other authorities TO ANY PERSON will now be covered under RCM,
6- Transport of passengers currently have option either 5% without ITC or 12% with ITC will now be extended to any motor vehicle,
7-Works contract to any govt or related authorities where 75% or more related to EARTH WORK will be taxed by 5%,
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1- Many changes in the rates related to JOB WORK and provided relief to the small workers/ units,
2- Schedule II , clause 6 b states that the "(b) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for
cash, deferred payment or other valuable consideration" which was earlier required to meet composition threshold which also need to consider all EXEMPT items which such service provider do and hence many such service providers were unable to get the benefit of the composition scheme and hence the EXEMPTED SUPPLIES will be now excluded while calculating the eligibility to get composition scheme,
3- Normally GTA does not require to make registration and in cases where any supplies are being made by such GTA, the liability to pay RCM lies on recipient however in case of UNREG recipient than such RCM was to paid by GTA which has now been exempted.
GTA > To any Unreg recipient or Unreg Casual taxable person > Exempt from RCM
4- Leasing of vehicles purchased and leased prior to 1.7.2017, shall be taxed at 65% of the applicable GST + Cess rate. This reduced rate would be applicable for a period of 3 years with effect from 1st July 2017 and this applies to cases where it is being disposed off,
5- Sale by way of auction of seized goods/ vehicle etc by govt & other authorities TO ANY PERSON will now be covered under RCM,
6- Transport of passengers currently have option either 5% without ITC or 12% with ITC will now be extended to any motor vehicle,
7-Works contract to any govt or related authorities where 75% or more related to EARTH WORK will be taxed by 5%,
8- Supply of service/ goods by Govt entity > Any other central govt or related authority> against the consideration received in the form of GRANT > Shall be EXEMPTED,
9- GST shall be levied @ 12% on works contract services in respect of offshore works contract relating to oil and gas exploration and production (E&P) in the offshore area beyond 12 nautical miles.
10- GST shall be levied @ 12% with ITC or 5% without ITC for transportation of natural gas through pipeline.
11- Exemption to annuity paid by NHAI (and State authorities or State owned development corporations for construction of roads) to concessionaires for construction of public roads.
12- Upfront payment on account of arranging any LONG TERM LEASE (30 yr or more) payable to Govt entities will NOW BE EXEMPTED FROM GST,
13-The services provided by Overseeing Committee members to RBI shall be taxed under the reverse charge mechanism under section 9(3) of the CGST Act, 2017.
For reading full text of press release please refer link - http://pib.nic.in/newsite/erelease.aspx?relid=171469
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