GST Rate on Services as Recommended by The GST Council in Its 37th Meeting
GST
Dated:- 20-9-2019
The 37th GST Council met in Goa today under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman . The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Chief Minister of Goa Shri Pramod Sawant, Finance Ministers of States & UTs and seniors officers of the Ministry of Finance .
GST Council took following decisions relating to changes in GST rates, ITC eligibility criteria, exemptions and clarifications on connected issues.
(A) EXEMPTIONS / CHANGES IN GST RATES / ITC ELIGIBILITY CRITERIA:
Rate reduction sector wise:
Hospitality and tourism:
* To reduce the rate of GST on hotel accommodation service as below: –
Transaction Value per Unit (Rs) per day
GST
₹ 1000 and less
Nil
₹ 1001 to ₹ 7500
12%
₹ 7501 and more
18%
* To reduce rate of GST on
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the validity of conditional exemption of GST on export freight by air or sea by another year, i.e. till 30.09.2020.
Insurance:
* To exempt “BANGLA SHASYA BIMA” (BSB) crop insurance scheme of West Bengal Government.
* To exempt services of life insurance business provided or agreed to be provided by the Central Armed Paramilitary Forces (under Ministry of Home Affairs) Group Insurance Funds to their members under the respective Group Insurance Schemes of these Central Armed Paramilitary forces.
Export promotion:
* To exempt services provided by an intermediary to a supplier of goods or recipient of goods when both the supplier and recipient are located outside the taxable territory.
* To issue a notification under Section 13(13) of IGST Act notifying the place of supply of specified R&D services (such as Integrated discovery and development, Evaluation of the efficacy of new chemical/ biological entities in animal models of disease,Evaluation of biological activity of nove
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e implementational ambiguity on the subject.
* To exempt services related to FIFA Under-17 Women's World Cup 2020 similar to existing exemption given to FIFA U17 World Cup 2017.
(B) RATIONALIZATION/ TRADE FACILITATION MEASURES:
* To allow payment of GST on securities lending service under reverse charge mechanism (RCM) at the merit rate of 18% and to clarify that GST on securities lending service for period prior to RCM period shall be paid on forward charge basis. IGST shall be payable on supply of these services and in cases where CGST/ SGST/ UTGST have been paid, such taxpayers will not be required to pay tax again.
* To allow RCM to suppliers paying GST @ 5% on renting of vehicles, from registered person other than body corporate (LLP, proprietorship) when services provided to body corporate entities.
(C) CLARIFICATIONS:
* To clarify the scope of the entry 'services of exploration, mining or drilling of petroleum crude or natural gas or both”.
* To clarify taxabilit
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