The Finance Ministry, vide circular no. 234/28/2024-GST dated 11th October 2024 has regularised Goods and Services Tax ( GST ) payments ‘As Is Where Is’ Basis for certain services, following the recommendations of the 54th GST Council meeting held on September 9, 2024.
One of the key decisions made during the Council meeting pertains to the transportation of passengers by helicopter on a seat share basis. Effective October 10, 2024, a notification has been issued (No. 07/2024-Central Tax (Rate)) to establish the GST rate at 5% for this service.
The Council further recommended regularising the payment of GST for passenger transport services conducted between July 1, 2017, and October 9, 2024, on an ‘as is where is’ basis. This means that any discrepancies in GST payments for past transactions will be accepted as they are without requiring additional payments.
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However, it is important to note that charter services for helicopter transport, which fall outside the seat share arrangement, will continue to attract GST at a higher rate of 18%.
Regularising payment of GST on import of services by an establishment of a foreign airlines company from a related person or any of its establishment outside India, when made without consideration
With regards to the import of services by an establishment of a foreign airlines company from a related person or any of its establishments outside India, when made without consideration, the GST Council has recommended an exemption for the import of services by establishments of foreign airline companies from related entities outside India when such services are provided without consideration.
This exemption has been formalised in notification No. 08/2024-Integrated Tax (Rate) dated October 8, 2024, also effective from October 10, 2024. The GST liability for such services, pertaining to the period from July 1, 2017, to October 9, 2024, has been regularised on an ‘as is where is’ basis, allowing foreign airlines to align their compliance without facing undue penalties for prior periods.
Regularising payment of GST on certain support services provided by an electricity transmission or distribution utility
The Council has also addressed the GST implications of various support services provided by electricity transmission and distribution utilities. Under the recent guidelines, services such as renting metering equipment, conducting meter tests, and issuing duplicate bills will be exempt from GST. This exemption comes into effect on October 10, 2024, through notification No. 08/2024-Central Tax (Rate).
Additionally, the Council has recommended regularising GST payments for these ancillary services from July 1, 2017, to October 9, 2024, also on an ‘as is where is’ basis. This move aims to alleviate the compliance burden on utility providers and ensure a smoother transition to the new regulatory framework.
Regularising payment of GST on services of film distributors or sub-distributors who act on a principal basis to acquire and distribute films
Representations have been made seeking clarification on the GST liability for transactions between distributors and exhibitors from July 1, 2017, to October 1, 2021, regarding the granting of theatrical rights to exhibition centres.
Field formations classified these transactions under SAC 9996, attracting an 18% GST rate. Before October 1, 2021, GST on “Motion Picture, videotape, and television programme distribution services” was set at 18%, while a 12% rate applied to the “temporary or permanent transfer or permitting the use or enjoyment of intellectual property rights” under Heading 9973. This overlap led to confusion about licensing rights for film broadcasting and exhibition. To address this issue, the 45th GST Council meeting on September 17, 2021, recommended standardising the GST rate at 18% for both categories, effective from October 1, 2021. In the 54th GST Council meeting on September 9, 2024, it was proposed to regularise GST payments for transactions between film distributors and exhibitors for the period from July 1, 2017, to September 30, 2021, on an ‘as is where is’ basis.
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