GST Circular No 228/2024
The CBIC’s recent circular clarifies the GST applicability on various services based on the recommendations of the 53rd GST Council meeting. Key points include the GST exemption for outward supplies by the Ministry of Railways and for transactions between Special Purpose Vehicles (SPVs) and the Ministry of Railways. This means that services provided by Indian Railways, as well as those involving SPVs, are exempt from GST, reducing the tax burden on these transactions.
Additionally, the circular addresses the GST applicability on statutory collections by the Real Estate Regulatory Authority (RERA) under the Real Estate (Regulation and Development) Act, 2016. It confirms that these collections are subject to GST, ensuring clarity for real estate developers and stakeholders. The document also clarifies the GST treatment of incentive amounts shared within the digital payment ecosystem,
specifically under the scheme promoting RuPay Debit Cards and low-value BHIM-UPI transactions, which are liable for GST.
Lastly, the circular outlines the GST liability on reinsurance services, including specified general and life insurance schemes and those where the total premium is paid by the government. It also covers the applicability of GST on retrocession services, which involve transferring risk from one reinsurance company to another. These clarifications aim to ensure consistent tax treatment and compliance across these areas, providing clear guidelines for businesses and authorities.
