Notification No. 04/2022-Central Tax (Rate). Notification 04/2022-CT (Rate) dated 13.07.2022 (with effect from 18.07.2022) withdraws exemption from various services. Some of important services, now taxable, are as under:
1. All services provided by Department of post will now be taxable irrespective of the status of recipient.
2. Exemption to services of GTA where freight upto 1500/- for full truck load and freight upto 750/- per consignment has been withdrawn. Hence, GST will be payable on GTA services irrespective of freight amount.
Currently, GTA who opt to pay GST @ 12% do not have the option to pay GST @ 5%. They have to pay GST at the rate of 12% on all their consignments under forward charge. GTA w.e.f. July 18, 2022 will be allowed to pay GST either at 5% (without ITC) or 12% (with ITC) on their consignments under forward charge. Further, RCM can be opted only if GTA has not opted to pay under forward charge and the option to continue under RCM @ 5% rate will also continue. GTAs will be able to switch from one option to the other at the beginning of the financial year.
New Annexure III has been inserted in the Services RCM Notification w.r.t. declaration by the GTA, opting to pay tax on services in relation to transport of goods under forward charge mechanism for an entire Financial Year.
3. W.e.f. 18.07.2022, now GST will also be leviable on storage or warehousing of nuts, spices, copra, sugarcane, Jaggery, cotton, flax, jute, indigo, unmanufactured tobacco, betel leaves, tandu leaves, coffee and tea
4. Services of licencing, registration, analysis & testing of food sample by FSSAI to ‘food business operator
5. Services of fumigation in a warehouse of agriculture produce
6. Services by the cord blood banks by way of preservation of stem cells or any other service in relation to such preservation.
7. Services of treatment or disposal of bio-medical waste provided by operator of the common bio-medical waste treatment facility to a clinical establishment.
8. Services of training or coaching in recreational activities relating to arts or culture by other than an individual.
Notification No. 05/2022-Central Tax (Rate) dtd 13.7.2022– Renting of residential dwelling house to registered person is taxable under gst and tax is payable under RCM in case of unregistered supplier of services.
Notification No. 06/2022-Central Tax (Rate) and 07/2022-Central Tax (Rate) dated July 13, 2022 has issued amendments in the Goods Exemption Notification so as to withdraw exemption on certain specified food items, grains etc. which are not branded or right on the brand has been foregone. Now, GST will be applicable on supply of pre-packaged & labelled goods.
Notification No. 08/2022-Central Tax (Rate) dated July 13, 2022 amended NN. 3/2017-CT(R) so as to notify rationalised from 5% to 12% for goods supplied for Petroleum/ Coal bed methane operations.
CBIC vide Notification No. 10/2022 Central Tax (Rate), Notification No. 15/2022-Central Tax and Notification No. 16/2022-Central Tax all dated July 13, 2022 has issued amendments in its Earlier Notifications, so as to simplify the measure and done away with the condition of 90% fly ash content w.r.t. fly ash bricks w.e.f. July 18, 2022 so as to apply same concessional rate on fly ash bricks irrespective of its content.
Notification No. 11/2022-Central Tax (Rate) dated July 13, 2022 has rescinded NN. 45/CT(R) to change the concessional GST rate of 5% (2.5% each CGST and SGST or 5% IGST) on scientific and technical equipments to rate applicable on such scientific and technical equipments w.e.f. July 18, 2022.
Author - CA Jatin Minocha
Phone- 99115-41774
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