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Taxation Central Ministry of Finance Central Goods and Services Tax Act, 2017

Clarifications regarding applicability of GST on certain services

31-Oct-2023 | 206/18/2023-GST

Ministry of Finance has issued clarifications regarding the applicability of GST on certain services. These clarifications are based on the recommendations of the GST Council in its 52nd meeting held on 7th October 2023, in New Delhi. The issues addressed in the circular are as follows:

i. Whether the term 'same line of business' in the context of passenger transport service and renting of motor vehicles includes the leasing of motor vehicles without operators.

ii. Whether GST is applicable on reimbursement of electricity charges received by real estate companies, malls, airport operators, etc., from their lessees/occupants.

iii. Whether job work for processing "Barley" into "Malted Barley" attracts GST at 5% as applicable to "job work in relation to food and food products" or at 18% as applicable to "job work in relation to the manufacture of alcoholic liquor for human consumption."

iv. Whether District Mineral Foundations Trusts (DMFTs) set up by the State Governments are considered Governmental Authorities and thus eligible for the same exemptions from GST as available to any other Governmental Authority.

v. Whether the supply of pure services and composite supplies related to horticulture/horticulture works (where the value of goods constitutes not more than 25 percent of the total value of supply) made to CPWD (Central Public Works Department) are eligible for exemption from GST under Sr. No. 3 and 3A of Notification no. 12/2017-CTR dated 28.06.2017.




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