The Central Board of Indirect Taxes and Customs (CBIC) has notified the Goods and Services Tax (GST) applicable to certain services provided by the courts and tribunals of the country. The notification also gives legislative effect to some other decisions of the 49th Goods and Services Tax Council Meeting.
The notification said, “In exercise of the powers conferred by sub-sections (3) and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendment further to amend the notification of the Government of India, Ministry of Finance (Department of Revenue), No.12/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June, 2017, namely:—
In the said notification, in paragraph 3, in the Explanation, after clause (iv), the following clause shall be inserted, namely: –
“(iva) For removal of doubts, it is clarified that any authority, board or body set up by the Central Government or State Government including National Testing Agency for conduct of entrance examination for admission to educational institutions shall be treated as educational institutions for the limited purpose of providing services by way of conduct of entrance examination for admission to educational institutions.”
The notification is set to have effect from today, March 01, 2023.
In the matter relating to GST under Reverse Charge Mechanism (RCM) on Courts, the following was notified “—In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.13/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 692(E), dated the 28th
June, 2017, namely: –
In the said notification, in the Explanation, in clause (h), for the words “and State Legislatures” the words “State Legislatures, Courts and Tribunals” shall be substituted.
“This notification shall come into force with effect from the 01st March, 2023.”, the circular further stated.
The Third Part of the Notification stated, ‘“In exercise of the powers conferred by sub-section (3) and sub-section (4) of section 5, subsection (1) of section 6 and clause (xxv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India, Ministry of Finance (Department of Revenue) No.9/2017-Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 684 (E), dated the 28th June, 2017, namely:-
In the said notification, in paragraph 3, in the Explanation, after clause (iv), the following clause shall be inserted, namely: –
“(iva) For removal of doubts, it is clarified that any authority, board or body set up by the Central
Government or State Government including National Testing Agency for conduct of entrance examination for admission to educational institutions shall be treated as educational institutions for the limited purpose of providing services by way of conduct of entrance examination for admission to educational institutions.”.
This is also set to have effect from March 01, 2023.
The Council had clarified that “It has been decided to extend the dispensation available to Central Government, State Governments, Parliament and State Legislatures with regard to payment of GST under reverse charge mechanism (RCM) to the Courts and Tribunals also in respect of taxable services supplied by them such as renting of premises to telecommunication companies for installation of towers, renting of chamber to lawyers etc.”
Read More: 49th GST Council Meeting Clarifies GST Levy on Services provided by Courts
The Reverse Charge Mechanism (RCM) is a concept under the Goods and Services Tax (GST) system in India where the recipient of the goods or services is liable to pay the tax to the government instead of the supplier. In other words, under RCM, the burden of paying the tax shifts from the supplier to the recipient.
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