GST Rate Amendments on Services including Transport, Job Work, Courier: CBIC Notifies New Rates [Read Notification]

These amendments cover service sectors including transportation, courier and postal services, job work activities, renting of goods, carriages, and allied services.

Under the revised structure, transportation services have seen changes. Transport of goods by rail (other than by Indian Railways) is now taxed at either 2.5% with restricted ITC or 9% without ITC conditions, while multimodal transport has been rationalised with separate provisions depending on whether air transport is involved.

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Similarly, renting of goods carriages inclusive of fuel costs will now attract 2.5% GST with conditional ITC or an alternative 9% rate.

In the courier and delivery segment, postal services, courier services, and local delivery services supplied through e-commerce operators are now aligned at a uniform 9% GST rate (18% under IGST). Delivery services outside these specified categories will also attract 9%.

For job work services, the notification has restructured rates extensively. Job work relating to diamonds will attract 0.75% GST, while job work for food products, pharmaceuticals, hides and skins, printing of books/newspapers, textiles, and bricks will be taxed at 2.5%. Other job work services, including those involving alcoholic liquor for human consumption, tailoring, and miscellaneous treatment or processes, will now attract a 9% rate.

The CBIC has also notified changes in other professional and business services, beauty and wellness services, as well as certain entertainment-related services, ensuring rationalisation and uniformity across service categories.

The amendments also include clarifications on the definition of Goods Transport Agency (GTA), multimodal transporter, handicraft goods, and recognised sporting events, to avoid interpretational disputes.

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