31^st GST Council Meeting

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• Additions in Reverse Charge

3 Services have been added under reverse charge mechanism, leading to total of 14 services being covered under RCM w.e.f from 1^st Jan 2019.

Service	By (Supplier)	To (Recipient)
Security Services (Supply of Security Personnel)[1]	Any person other than body corporate	Registered Person in taxable territory
Services provided by business facilitator (BF) to a banking company	Business facilitator (BF)	A banking company, located in the taxable territory
Services provided by an agent of business correspondent (BC) to business correspondent (BC).	An agent of business correspondent (BC)	A business correspondent, located in the taxable territory

[1] Not applicable to Government Department, local authority or  governmental agencies registered only for GST TDS (Sec 51 of CGST Act,2017 ; and Composition dealers

MAJOR IMPACT: From 1st Jan 2019 you have to pay GST under RCM when receiving security services from a person other than body corporate at 18%.

 

• Change in rates of Services

The rates of following services have been changed w.e.f from 1^st Jan 2019.

Service	Tax Rate
Leasing or renting of goods	Same rate of central tax as applicable on supply of like goods involving transfer of title in goods
Service of third party insurance of “good carriage”	12%
Service by way of construction or engineering or installation or other technical services, provided in relation of setting up of following, – Bio-gas plant Solar power based devices Solar power generating system Wind mills, Wind Operated Electricity Generator (WOEG) Waste to energy plants / devices Ocean waves/tidal waves energy devices/plants[1]	18%

 

MAJOR IMPACT: If you lease or rent goods then, GST rate shall be equal to rate applicable on sale of such goods. This is applicable if specific rate of leasing/renting is not mentioned.

• Additions in Services exempted from GST

Following services have been exempted from GST w.e.f from 1^st Jan 2019.

 

HSN	Service
9965 / 9967	Services provided by GTA by way of transport of goods to Government department/establishment/agencies or local authority registered only for GST TDS (sec 51)
9971	Services provided by a banking company to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY)

 

MAJOR IMPACT: Goods Transport Agency and Banks

 

Note : The article briefly covers major points of various Notifications issued after GST council meeting. For a detailed update kindly refer the notifications or contact us.