The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on applicable GST rates & exemptions on certain services as per the decision of the GST Council’s recommendation after the 47th meeting held at Chandigarh on 28th and 29th June 2022.
On the recommendation of the GST Council in its 45th meeting, it was clarified vide circular 164/20/2021-GST dated 06.10.2021 that ice cream parlours sell already manufactured ice- cream and they do not have a character of a restaurant and hence, ice cream sold by a parlour or any similar outlet attracts the standard rate of GST @ 18% with ITC.
The circular issued on Wednesday said that “it can be seen that all services supplied by an ‘educational institution’ to its students are exempt from GST. Consideration charged by the educational institutes by way of entrance fee for the conduct of entrance examination is also exempt. The exemption is wide enough to cover the amount or fee charged for admission or entrance or the amount charged for the application fee for entrance, or the fee charged from prospective students for the issuance of an eligibility certificate to them in the process of their entrance/admission to the educational institution. Services supplied by an educational institution by way of issuance of migration certificates to the leaving or ex-students are also covered by the exemption. Accordingly, such activities of educational institutions are also exempt.”
“Accordingly, it is clarified that the amount or fee charged from prospective students for entrance or admission, or for issuance of eligibility certificate to them in the process of their entrance/admission as well as the fee charged for issuance of migration certificates by educational institutions to the leaving or ex-students is covered by an exemption under Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017,” the circular said.
It was further clarified that the service by way of storage or warehousing of cotton in ginned and or baled form was covered under entry 24B of notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 in the category of raw vegetable fibres such as cotton. It may however be noted that this exemption has been withdrawn w.e.f 18.07.2022.
Regarding the exemption on services associated with transit cargo both to and from Nepal and Bhutan, the regulations governing transit/transhipment have to be followed in addition to ensuring that an electronic track and trace facility is in place. This facility uses container numbers to locate the cargo. Thus, it is verifiable that the empty container returning from Nepal or Bhutan is the same container which was used to deliver goods to Nepal or Bhutan.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan Premium. Follow us on Telegram for quick updates.
