RECENT NOTIFICATIONS ON ‘IGST’ RATE
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 19-1-2019
The Central Government issued seven notifications on IGST rate consequent the decisions taken by the GST Council. These notifications came into effect from 01.01.2019.
Notification No. 25/2018-Integrated Tax (Rate)
Vide Notification No.01/2017-Integrated Tax (Rate), dated 28.06.2017 notified 6 types of rates as detailed below-
* 5 per cent. in respect of goods specified in Schedule I,
* 12 per cent. in respect of goods specified in Schedule II,
* 18 per cent. in respect of goods specified in Schedule III,
* 28 per cent. in respect of goods specified in Schedule IV,
* 3 per cent. in respect of goods specified in Schedule V, and
* 0.25 per cent. in respect of goods specified in Schedule VI.
This Notification brings amendment to the first schedules in Notification No.01/2017-Integrated Tax (Rate).
Amendments in Schedule I – 5%
* This Noti
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the purposes of this entry shall be deemed as 70% of the gross consideration charged for all such supplies, and the remaining 30% of the gross consideration charged shall be deemed as value of the said taxable service.
* Sl. No. 234A is renumbered as 234B and a new entry 234A is inserted as detailed below-
* 234A – 871420 –
Amendments in Schedule II -12%
* After sl. No. 101, the sl. Nos. 101A, 101B and 101C are inserted as detailed below-
* 101A – 4502 00 00 – Natural cork, debacked or roughly squared, or in rectangular (including square) blocks, plates, sheets or strip (including sharp-edged blanks for corks or
* 101B – 4503 – Articles of natural cork such as Corks and Stoppers, Shuttlecock cork bottom
* 101C – 4504 – Agglomerated cork (with or without a binding substance) and articles of agglomerated cork
* This Notification omitted the entries No. 102 and 126.
* 102 – 4501 –
* 126 – 4904 00 00 – Music, printed or in manuscript, whether or not bound or illustrated
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ngs (including universal joints)” are substituted.
* A new entry 376AA is inserted after the entry 376A.The details of the new entry are as follows-
* 376AA – 8507 – Lithium-ion accumulators (other than battery) including lithium-ion power bank”
* Against S. No. 383, in the entry in column (3), after the words “television cameras”, the words, “digital cameras and video camera recorders”, are inserted.
* Against S. No. 384, in the entry in column (3), for the figures and word “20 inches”, the figures and word “32 inches” shall be substituted.
* Sl. No. 440A is renumbered as 440B and the new entry for 440A is inserted as detailed below-
* 440A – 9504 – Video game consoles and machines, articles of funfair, table or parlour games, including pintables, billiards, special tables for casino games and automatic bowling alley equipment [other than playing cards, ganjifa card, chess board, carom board and other board games of 9504 90 90 like ludo, etc.
Amendments in Schedule IV -28
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d accessories of vehicles of heading 8711.
Notification No. 26/2018-Integrated Tax (Rate)
Notification No.02/2017-Integrated Tax (Rate), dated 28.06.2017 granted exemption to certain supplies. The present Notification substituted entries for the entries 43A, 43B and inserted entries 121A and 153. The new substituted and inserted entries are as follows-
Sl.No.
Chapter/Heading/Sub-heading/Tariff item
Description of Goods
43A
0710
Vegetables (uncooked or cooked by steaming or boiling in water), frozen
43B
0711
Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.
121A
4904 00 00
Music, printed or in manuscript, whether or not bound or illustrated
153
Any Chapter
Supply of gift items received by the President, Prime Minister, Governor or Chief Minister of any State or Union territory, or any public servant, by way of public auction by t
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with Handbook of Procedures;
* the recipient shall export the jewellery made out of such gold within a period of 90 (ninety) days from the date of supply of gold to such recipient and shall provide copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number (GSTIN) along with the invoice for exports to the Nominated Agency within a period of 120 (one hundred and twenty) days from the date of supply by the Nominated Agency;
* wherever such proof of export is not produced within the period mentioned in condition (ii), the Nominated Agency shall pay the amount of integrated tax payable on the quantity of gold not exported, along with interest from the date when the said tax on such supply was payable, but for the exemption.
Notification No. 28/2018-Integrated Tax (Rate)
Notification No. 08/2017-Integrated Tax (Rate), dated 28.06.2017 prescribes the IGST tax rates on services. The present notification brings the following amendments to t
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than (i), (ii), (iii), (iv), (v), and (vi) above – 18%
* Sl.No. 17 of the table deals with the Heading 9973 (
* (viia) Leasing or renting of goods – Same rate of integrated tax as applicable on supply of like goods involving transfer of title in goods
* (viii) Leasing or rental services, with or without operator, other than (i), (ii), (iii), (iv), (v), (vi), (vii) and (viia) above- 18%;
* This Notification substituted tax rate as 12%(18%) for item No. (iv) of 34.After amendment the revised entry is as below-
(ii) Services by way of admission exhibition of cinematograph films where price of admission ticket is one hundred rupees or less. – 12%
* This Notification inserted entry No. 38 as detailed below-
Sl.No.
Chapter, Section or Heading
Description of Service
Rate (per cent.)
Condition
38
9954 or 9983 or 9987
Service by way of construction or engineering or installation or other technical services, provided in relation of setting up of following, –
(a) Bio-gas plant
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fication No. 29/2018-Integrated Tax (Rate)
This Notification amended the Notification No. 09/2017- Integrated Tax (Rate), dated 28.06.2017 in which the Central Government exempted the inter-State supply of services of description as specified in column (3) of the Table given in the Notification from so much of the Integrated Tax leviable thereon under sub-section (1) of section 5 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table.
The following are the amendments brought out in Notification No.09/2017-Integrated tax-
* The present Notification inserted item No. 22B, 28A and 77Aas detailed below-
Sl.No
Chapter, Section, Heading, Group or Service Code (Tariff)
Description of Services
Rate (per cent.)
Condition
22B
Heading 9965 or Heading 9967
Services
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y or an entity registered under section 12AA of the Income tax Act, 1961.
NIL
NIL
* Entry No. 35A indicates -Services supplied by Central Government, State Government, Union territory to their undertakings or Public Sector Undertakings (PSUs) by way of guaranteeing the loans taken by such undertakings or PSUs from the financial institutions.
The present Notification inserted the words 'banking companies and' after the words 'PSU from the'.
* This notification substitutes the Heading for the entry No. 69 – 9992.The newly substituted headings are 'Heading 9992 or Heading 9963'.
* This notification omitted serial No. 70 and the entries relating thereto. The entry 70 deals with the Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development Programme.
* Para 2 of the Notification No. 09/2017-Integrated Tax (Rate) gives definition for vari
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ation inserted a proviso after the item No. 2(g) which provides that nothing contained in this entry shall apply to services provided by a goods transport agency, by way of transport of goods in a goods carriage by road, to, –
* a Department or Establishment of the Central Government or State Government or Union territory; or
* Local Authority; or
* Government Agencies,
which has taken registration under the Central Goods and Services Tax Act, 2017 only for the purpose of deducting tax under section 51 and not for making a taxable supply of goods or services.
* This Notification inserted 3 entries from 14 to 16 as detailed below
Sl.No.
Category of Supply of Services
Supplier of service
Recipient of Service
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 corresp
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