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

GST Council Streamlines Rates & Applicability on the supply of services

08-Aug-2023 | Circular No. 200/12-HGST/2023-GST-II

Government of Haryana has reiterated a circular issued by CBIC dated 1st August 2023 regarding clarifications on the rates and classification of certain goods and services based on the recommendations of the GST Council in its 50th meeting held on 11th July 2023. These clarifications aim to address genuine doubts and ensure uniformity in the application of GST across various sectors. By virtue of this circular, some of the Rates & Applicability on the supply of services are given below: 1. Services supplied by a director of a company or body corporate to the company or body corporate in his private or personal capacity, such as renting of immovable property, are not taxable under Reverse Charge Mechanism (RCM). Only services supplied by a director in the capacity of a director of the company or body corporate are taxable under RCM. 2. The supply of food or beverages in a cinema hall is taxable as restaurant service under GST at the rate of 5% as long as the supply is provided independently of the cinema exhibition service. However, if it constitutes a composite supply, the entire supply will attract GST at the rate applicable to the service of cinema exhibition, the principal supply.

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