GST Circular No 206/2023
This circular aims to address several open issues and provide clarity on GST applicability Clarification is provided on the following issues:
1. Whether ‘the same line of business in case of passenger transport service and renting of motor vehicles includes leasing of motor vehicles without operators. It is hereby clarified that input services in the same line of business include transport of passengers (SAC 9964) or renting of motor vehicle with operator (SAC 9966) and not leasing of motor vehicles without operator (SAC 9973) which attracts GSTand/or compensation cessat the same rate as supplyof motor vehiclesby way of sale.
2. Whether GST is applicable on reimbursement of electricity charges received by real estate companies, malls, airport operators etc. from their lessees/occupants. It is clarified that whenever electricity is being
supplied bundled with renting of immovable property and/or maintenance of premises, as the case may be, it forms a part of composite supply and shall be taxed accordingly. The principal supply is renting of immovable property and/or maintenance of premise, as the case may be, and the supply of electricity is an ancillary supplyas the case may be. Even if electricity is billed separately, the supplies will Constitute a composite supply and therefore, the rate of the principal supply i.e., GST rate on renting of immovable property and/or maintenance of premise, as the case may be, would be applicable
3. Whether job work for processing of “Barley” into “Malted Barley” attracts GST@5% as applicable to “”job work in relation to food and food products” or 18% as applicable on “job work in relation to manufacture of alcoholic liquor for human consumption
It is hereby clarified that job work services in relation to manufacture of malt are covered by the entry at Sl. No. 26 (i) (f) which covers “job work in relation to all food and food products falling under chapters 1 to 22 of the customs tariff” irrespective of the end use of that malt and attracts 5% GST
4. Whether District Mineral Foundations Trusts (DMFTs) set up by the State Governments are Governmental Authorities and thus eligible for the same exemptions from GST as available to any other Governmental Authority. It is clarified that DMFT set up by the State Governments are Governmental Authorities and thus eligible for the same exemptions from GST as available to any other Governmental Authority.
5. Whether supply of pure services and composite supplies by way of horticulture/horticulture works(where the value of goods constitutes not more than 25 per cent of the total value of supply) made to CPWD are eligible for exemptionfrom GST under Sr. No. 3 and 3A of Notification no 12/2017-CTR dated 28.06.2017. It is clarified that supply of pure services and composite supplies by way of horticulture/horticulture works(where the value of goods constitutes not more than 25 per cent of the total value of supply) made to CPWD are eligible for exemptionfrom GST under Sr. No. 3 and 3A of Notification no 12/2017-CTR dated 28.06.2017.
