The rate of GST on IT services is 18%.
( FAQ 5: IT/ITES)
The supplier has sold machinery for hotel industry on 28-06-2017. The purchaser has received the invoice and machinery on 05-07-2017. Whether ITC of Duty / VAT paid ( under the existing law ) on machinery can be allowed to be claimed ?
No. Such credit is not admissible in case of machinery, being capital goods. As per Section 140 ( 5 ) of the CGST Act, 2017, credit of eligible duties and taxes in respect of only inputs / input services in transit during transition from Pre-GST to Post-GST is allowable. This is subject to the condition that the tax on such supply is paid under the existing law and the recipient records this receipt in his books of accounts within thirty days of the appointed day
(FAQ-7 Food Processing)
The registered person ‘B’ receives small portions of software code from individuals which he then integrates and supply as a package to clients. These individuals are having small turnover of Rs 5 to 10 lakh, and therefore are not registered in GST. Whether there is any liability on ‘B’ in respect of services provided by such individuals?
- If the supplies are made by unregistered suppliers, GST is liable to be paid by the recipient, who is a registered person, undersection 9(4) of the CGST Act, 2017.
- Therefore, in this case ‘B’ is liable to pay GST on services provided by these individuals.
- ‘B’ can claim credit of this tax paid by him on reverse charge
( FAQ 4: IT/ITES)
‘A’ is a dealer in Computers and Computer parts having turnover of Rs. 8 lakh in a year; does‘A’ have to register under GST
- Every supplier located in a State or Union territory, whose “aggregate turnover” in a financial year exceeds twenty lakh rupees, is liable to be registered under GST.
- This limit of turnover for a special category State is ten lakh rupees. ‘A’, whose aggregate turnover is only Rs. 8 lakh in a year, is therefore not liable to registration.
(FAQ 3: IT/ITES)
What are the implications of recognising the development, design, programming, customisation, adaptation, upgradation, enhancement, and implementation of information technology software as a service
- The primary implication is that the place of supply rules applicable to services would apply in determining taxability of the supply of software services.
- The same would be applicable in situations of supply of services involving a temporary transfer or permitting the use or enjoyment of any intellectual property right.
- The other implication is that the supplier of software services would not
be eligible for the composition scheme.
(FAQ 2: IT/ITES )
Whether software is regarded as goods or services in GST
- In terms of Schedule II of the CGST Act 2017, development,design, programming, customisation, adaptation, upgradation,enhancement, implementation of information technology software and temporary transfer or permitting the use or enjoyment of any intellectual property right are treated as services.
- But, if a pre-developed or pre-designed software is supplied in any medium/storage (commonly bought off-the-shelf) or made available through the use of encryption keys, the same is treated as a supply of goods classifiable under heading 8523.
( FAQ 1: IT/ITES)
GST on Passenger Transportation by Road
Travel by Stage /Contract Carriage/Motor Cab/Radio Taxi
GST on Travel By Air
Economy Class[ Sl No. 8(iii) of 11/2017-CTR]
GST on Travel By Rail
[Sl No. 8(i) of NN 11/2017-CTR]
Accommodation Services
| 1 | Services by way of renting of residential dwelling for use as residence is NIL rated as per Sl No. 12 of NN 12/2017 |
| 2 | As per Sl No. 13(b) of NN 12/2017
Services by a person by way of- (b) renting of precincts of a religious place meant for general public, owned or managed by Ø an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) or Ø a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or Ø a body or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act is NIL rated
Provided that nothing contained in entry (b) of this exemption shall apply to,- (i) renting of rooms where charges are one thousand rupees or more per day; (ii) renting of premises, community halls, kalyanmandapam or open area, and the like where charges are ten thousand rupees or more per day; (iii) renting of shops or other spaces for business or commerce where charges are ten thousand rupees or more per month |
| 3 | Meaning of declared tariff [In Sl No. 7(ii),(vi),(vii) of NN 11/2017 and Para 2(w) of NN 12/2017
“declared tariff” includes Ø charges for all amenities provided in the unit of accommodation (given on rent for stay) Ø like furniture, air conditioner, refrigerators or any other amenities, Ø but without excluding any discount offered on the published charges for such unit.
|
| 4 | Hotel with declared tariff < Rs. 1000/- per day :[Sl No. 14 of NN 12/2017]
Ø Services by a hotel, inn, guest house, club or campsite, by whatever name called, Ø for residential or lodging purposes, Ø having declared tariff of a unit of accommodation Ø below one thousand rupees per day or equivalent.
Is exempt as per Sl. No. 14 of Notificaiton 12/2017-CTR
Service tax was also exempt. |
| 5 | Hotel with declared tariff => Rs. 1000/- per day but <Rs. 2500:Heading 9963[Sl. No. 7(ii) of N/N 11/2017-CTR]
Ø Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places Ø meant for residential or lodging purposes Ø having declared tariff of a unit of accommodation of one thousand rupees and above but less than two thousand five hundred rupees per unit per day or equivalent.
GST Rate is 12%
In service tax rate was 60% of 15%= 9% as per NN 26/2012
|
| 6 | Hotel with declared tariff => Rs. 2500/- per day but <Rs. 7500:Heading 9963[Sl. No. 7(vi) of N/N 11/2017-CTR]
Ø Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places Ø meant for residential or lodging purposes Ø having declared tariff of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent.
GST Rate is 18% In service tax rate was 60% of 15%= 9% as per NN 26/2012
|
| 7 | Hotel with declared tariff => Rs. 7500/- per day:Heading 9963[Sl. No. 7(viii) of N/N 11/2017-CTR]
Ø Accommodation in hotels including five star hotels, inns, guest houses, clubs, campsites or other commercial places Ø meant for residential or lodging purposes Ø having declared tariff of a unit of accommodation of seven thousand and five hundred rupees and above per unit per day or equivalent.
GST Rate is 28% |
| 8 | Accommodation, food and beverage services other than (i), (ii), (iii), (iv), (v), (vi), (vii) and (viii) above is taxable @ 18% as per Sl. No. 7(ix) of N/N 11/2017-CTR |