Notification No: 11/2017 – Central Tax dated 28-06-2017 – Download pdf

To notify the rates for supply of services under CGST Act

Title To notify the rates for supply of services under CGST Act
Number 11/2017
Date 28-06-2017
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G.S.R……(E).- In exercise of the powers conferred by sub-section (1) of section 9, subsection (1) of section 11, sub-section (5) of section 15 and sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby notifies that the central tax, on the intra-State supply of services of description as specified in column (3) of the Table below, falling under Chapter, Section or Heading of scheme of classification of services as specified in column (2), shall be levied at the rate as specified in the corresponding entry in column (4), subject to the conditions as specified in the corresponding entry in column (5) of the said Table:-

Table

Sl No.Chapter,Section or HeadingDescription of ServiceRate (per cent.)Condition
(1)(2)(3)(4)(5)
1.Chapter 99All Services
2.Section 5Construction Services
3.Heading 9954 (Construction services)9–
(ii) composite supply of works contract as
defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017.		9–
(iii) construction services other than (i) and
(ii) above.		9–
4Section 6Distributive Trade Services; Accommodation, Food and Beverage Service; Transport Services; Gas and Electricity Distribution Services
5Heading 9961Services in wholesale trade

Explanation-This service does not include sale or purchase of goods but includes:

  • Services of commission agents, commodity brokers, and auctioneers and all other traders who negotiate whole sale
    commercial transactions between buyers and sellers, for a fee or commission’
  • Services of electronic whole sale agents and brokers,
  • Services of whole sale auctioning houses.
    		• 9–
    6Heading 9962Services in retail trade.

    Explanation- This service does not include sale or purchase of goods

    		9–
    7Heading 9963 (Accommodation, food and beverage services)(i) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, neither having the facility of air-conditioning or central air -heating in any part of the establishment, at any time during the year nor having licence or permit or by whatever name called to serve alcoholic liquor for human consumption6–
    (ii) Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of a unit of accommodation of one thousand rupees and above but less than two thousand five hundred rupees per unit per day or equivalent.

    Explanation.- “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit

    		6–
    (iii) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink, where such supply or service
    is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, having licence or permit or by whatever name called to serve alcoholic liquor for human consumption.    		9–
    (iv) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year.9–
    (v) Supply, by way of or as part of any service or in any other manner whatsoever in outdoor catering wherein goods, being food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), as a part of such outdoor catering and such supply or service is for cash, deferred payment or other valuable
    consideration.    		9–
    (vi) Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent.

    Explanation.- “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.

    		9–
    (vii) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, including but not limited to food or any other article for human consumption or any drink (whether or not alcoholic liquor for
    human consumption), where such supply or service is for cash, deferred payment or other valuable consideration, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function) together with renting of such premises.    		9–
    (viii) Accommodation in hotels including five star hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of a unit of accommodation of seven thousand and five hundred rupees and above per unit per day or equivalent.

    Explanation.-“declared tariff ” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.

    		14–
    (ix) Accommodation, food and beverage services other than (i), (ii), (iii), (iv), (v), (vi), (vii) and (viii) above.9–
    8Heading 9964 (Passenger
    transport services)    		(i) Transport of passengers, with or without accompanied belongings, by rail in first class or air conditioned coach.2.5Provided that credit of input tax charged in respect of goods used in supplying the service is not utilised for paying central tax or integrated tax on the supply of the service
    (ii) Transport of passengers, with or without accompanied belongings by-

    1. air conditioned contract carriage other than motorcab;
    2. air conditioned stage carriage;
    3. radio taxi.

    Explanation.-

    (a) “contract carriage” has the meaning assigned to it in clause
    (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

    (b) “stage carriage” has the meaning assigned to it in clause
    (40) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) ;

    (c) “radio taxi” means a taxi including a radio cab, by whatever
    name called, which is in two-way radio communication with a central control
    office and is enabled for tracking using Global Positioning System (GPS) or
    General Packet Radio Service (GPRS).

    		2.5Provided that credit of input tax charged on goods or services used in supplying the service has not been taken [Please refer to Explanation no.(iv)]
    (iii) Transport of passengers, with or without accompanied belongings, by air in economy class.2.5Provided that credit of input tax charged on goods used in supplying the service has not been taken

    [Please refer to Explanation no.(iv)]

    (iv) Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a
    Regional Connectivity Scheme Airport, as notified by the Ministry of Civil Aviation.    		2.5Provided that credit of input tax charged on goods used in supplying the service has not been taken

    [Please refer to Explanation no.(iv)]

    (v) Transport of passengers by air, with or without accompanied belongings, in other than economy class.6–
    (vi) Transport of passengers by motorcab where the cost of fuel is included in the consideration charged from the service recipient.2.5Provided that credit of input tax charged on goods and services used in supplying the service has not been taken

    [Please refer to Explanation no.(iv)]

    (vii) Passenger transport services other than
    (i), (ii) (iii), (iv), (v) and (vi) above.    		9–
    9Heading 9965(Goods transport services)(i) Transport of goods by rail (other than
    services specified at item no. (iv)).    		2.5Provided that credit of input tax charged in respect of goods in supplying the service is not utilised for paying
    central tax or integrated tax on the supply of the service
    (ii) Transport of goods in a vessel.2.5Provided that credit of input tax charged on goods
    (other than on ships, vessels
    including bulk carriers and
    tankers) used in supplying the
    service has not been taken

    [Please refer to Explanation no.(iv)]

    (iii) Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use).

    Explanation.- “goods transport agency”

    means any person who provides service in

    relation to transport of goods by road and

    issues consignment note, by whatever name

    called.

    		2.5Provided that credit of input tax charged on goods and services used in supplying the service has not been taken

    [Please refer to Explanation no.(iv)]

    (iv) Transport of goods in containers by rail
    by any person other than Indian Railways.    		6–
    (v) Goods transport services other than (i),
    (ii), (iii) and (iv) above.    		9–
    10Heading 9966 (Rental services
    of transport vehicles)    		(i) Renting of motorcab where the cost of fuel
    is included in the consideration charged from
    the service recipient.    		2.5Provided that credit of input tax charged on goods
    and services used in supplying the service has not
    been taken

    [Please refer to Explanation no.(iv)]

    (ii) Rental services of transport vehicles with
    or without operators, other than (i) above.    		9–
    11Heading 9967 (Supporting
    services in transport)    		(i) Services of goods transport agency (GTA)
    in relation to transportation of goods
    (including used household goods for personal
    use).

    Explanation.- “goods transport agency” means any person
    who provides service in relation to transport of goods by road and issues
    consignment note, by whatever name called.

    		2.5Provided that credit of input tax charged on goods
    and services used in supplying the service has not
    been taken

    [Please refer to Explanation no. (iv)]

    (ii) Supporting services in transport other
    than (i) above.    		9–
    12Heading 9968Postal and courier services.9–
    13Heading 9969Electricity, gas, water and other distribution
    services.    		9–
    14Section 7Financial and related services; real estate
    services; and rental and leasing services.
    15Heading 9971 (Financial and
    related services)    		(i) Services provided by a foreman of a chit
    fund in relation to chit.

    Explanation.-

    1. “chit” means a transaction whether called
      chit, chit fund, chitty, kuri, or by whatever
      name by or under which a person enters into
      an agreement with a specified number of
      persons that every one of them shall
      subscribe a certain sum of money (or a
      certain quantity of grain instead) by way of
      periodical instalments over a definite period
      and that each subscriber shall, in his turn, as
      determined by lot or by auction or by tender
      or in such other manner as may be specified
      in the chit agreement, be entitled to a prize
      amount;
    2. “foreman of a chit fund” shall have the
      same meaning as is assigned to the
      expression “foreman” in clause (j) of section
      2 of the Chit Funds Act, 1982 (40 of 1982).
    		6Provided that credit of input tax charged on goods used in supplying the service has not been taken

    [Please refer to Explanation no. (iv)]

    (ii) Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash,
    deferred payment or other valuable consideration.    		Same rate of central tax as on supply of like goods involving transfer of title in goods–
    (iii) Any transfer of right in goods or of
    undivided share in goods without the transfer
    of title thereof.    		Same rate of central tax as on supply of like goods involving transfer of title in goods–
    (iv) Leasing of aircrafts by an operator for
    operating scheduled air transport service or
    scheduled air cargo service by way of
    transaction covered by clause (f) paragraph 5
    of Schedule II of the Central Goods and
    Services Act, 2017.

    Explanation.-

    1. “operator” means a person, organisation
      or enterprise engaged in or offering to engage
      in aircraft operations;
    2. “scheduled air transport service” means
      an air transport service undertaken between
      the same two or more places operated
      according to a published time table or with flights so regular or frequent that they
      constitute a recognisable systematic series,
      each flight being open to use by members of
      the public;
    3. “scheduled air cargo service” means air
      transportation of cargo or mail on a scheduled
      basis according to a published time table or
      with flights so regular or frequent that they
      constitute a recognisably systematic series,
      not open to use by passengers.
    		2.5Provided that credit of input tax charged on goods used in supplying the service has not been taken

    [Please refer to Explanation no. (iv)]

    (v) Financial and related services other than
    (i), (ii), (iii), and (iv) above.    		9–
    16Heading 9972Real estate services.9–
    17Heading
    9973    (Leasing or rental services, with or without operator)    		(i) Temporary or permanent transfer or
    permitting the use or enjoyment of
    Intellectual Property (IP) right in respect of
    goods other than Information Technology
    software.    		6–
    (ii) Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of Information Technology software. [Please refer to Explanation no. (v)]9–
    (iii) Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration.Same rate of central tax as on supply of like goods involving transfer of title in goods–
    (iv) Any transfer of right in goods or of
    undivided share in goods without the transfer
    of title thereof.    		Same rate of central tax as on supply of like goods involving transfer of title in goods–
    (v) Leasing of aircrafts by an operator for
    operating scheduled air transport service or
    scheduled air cargo service by way of
    transaction covered by clause (f) paragraph 5
    of Schedule II of the Central Goods and
    Services Act, 2017.

    Explanation.-

    1. “operator” means a person, organisation or enterprise
      engaged in or offering to engage in aircraft operations;
    2. “scheduled air transport service” means
      an air transport service undertaken between
      the same two or more places operated
      according to a published time table or with
      flights so regular or frequent that they
      constitute a recognisable systematic series,
      each flight being open to use by members of
      the public;
    3. “scheduled air cargo service” means air
      transportation of cargo or mail on a scheduled
      basis according to a published time table or
      with flights so regular or frequent that they
      constitute a recognisably systematic series,
      not open to use by passengers.
    		2.5Provided that credit of input tax charged on goods used in supplying the service has not been taken

    [Please refer to Explanation no. (iv)]

    18Section 8Business and Production Services
    19Heading 9981Research and development services.9–
    20Heading 9982Legal and accounting services.9–
    21Heading
    9983    (Other professional, technical and business services)    		(i) Selling of space for advertisement in print media.2.5–
    (ii) Other professional, technical and business services other than (i) above.9–
    22Heading 9984Telecommunications, broadcasting and information supply services.9–
    23Heading 9985 (Support
    services)    		(i) Supply of tour operators services

    Explanation.- “tour operator” means any
    person engaged in the business of planning,
    scheduling, organizing, arranging tours
    (which may include arrangements for
    accommodation, sightseeing or other similar
    services) by any mode of transport, and
    includes any person engaged in the business
    of operating tours.

    		2.51. Provided that credit of input tax charged on goods and services used in supplying the service has not been taken

    [Please refer to Explanation no. (iv)]

    2. The bill issued for supply of this service indicates that it

    is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for such a

    tour including the charges of accommodation and transportation required for
    such a tour

    (ii) Support services other than (i) above9–
    24Heading 9986(i) Support services to agriculture, forestry,
    fishing, animal husbandry.

    Explanation. – “Support services to

    agriculture, forestry, fishing, animal

    husbandry” mean –


    1. Services relating to cultivation of plants

      and rearing of all life forms of animals,

      except the rearing of horses, for food, fibre,

      fuel, raw material or other similar products

      or agricultural produce by way of—

      (a) agricultural operations directly related

      to production of any agricultural produce

      including cultivation, harvesting,

      threshing, plant protection or testing;


      (b) supply of farm labour;


    1. (c) processes carried out at an

      agricultural farm including tending,

      pruning, cutting, harvesting, drying,

      cleaning, trimming, sun drying,

      fumigating, curing, sorting, grading,

      cooling or bulk packaging and such like

      operations which do not alter the

      essential characteristics of agricultural

      produce but make it only marketable for

      the primary market;


      (d) renting or leasing of agro machinery

      or vacant land with or without a structure

      incidental to its use;


      (e) loading, unloading, packing, storage

      or warehousing of agricultural produce;


      (f) agricultural extension services;


      (g) services by any Agricultural Produce

      Marketing Committee or Board or

      services provided by a commission agent

      for sale or purchase of agricultural

      produce.



    2. Services by way of pre-conditioning,

      pre-cooling, ripening, waxing, retail

      packing, labelling of fruits and vegetables

      which do not change or alter the essential

      characteristics of the said fruits or

      vegetables.

    3. Carrying out an intermediate production

      process as job work in relation to cultivation

      of plants and rearing of all life forms of

      animals, except the rearing of horses, for

      food, fibre, fuel, raw material or other

      similar products or agricultural produce.

    		Nil–
    (ii) Support services to mining, electricity,
    gas and water distribution.    		9–
    25Heading 9987Maintenance, repair and installation (except
    construction) services.    		9–
    26Heading 9988
    (Manufacturing services on physical inputs (goods) owned by others)    		(i) Services by way of job work in relation to-

    1. Printing of newspapers;

    2. Textile yarns (other than of man-made fibres) and textile fabrics;

    3. Cut and polished diamonds; precious and semi-precious stones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975);

    4. Printing of books (including Braille books), journals and periodicals;

    5. Processing of hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act,
      1975 (51of 1975).

    Explanation.- “man made fibres” means staple fibres and filaments of organic polymers produced by manufacturing processes either,-


    (a) by polymerisation of organic monomers to produce polymers such as polyamides, polyesters, polyolefins or polyurethanes, or by chemical modification of polymers produced by this process [for example, poly(vinyl alcohol) prepared by the hydrolysis of
    poly(vinyl acetate)]; or

    (b) by dissolution or chemical treatment of natural organic polymers (for example, cellulose) to produce polymers such as
    cuprammonium rayon (cupro) or viscose rayon, or by chemical modification of natural organic polymers (for example, cellulose, casein and other proteins, or alginic acid), to produce polymers such as cellulose acetate or alginates.

    		2.5–
    (ii) Manufacturing services on physical inputs
    (goods) owned by others, other than (i) above.    		9–
    27Heading 9989Other manufacturing services; publishing,
    printing and reproduction services; materials
    recovery services.    		9–
    28Section 9Community, Social and Personal Services
    and other miscellaneous services
    29Heading 9991Public administration and other services provided to the community as a whole; compulsory social security services.9–
    30Heading 9992Education services.9–
    31Heading 9993Human health and social care services.9–
    32Heading 9994Sewage and waste collection, treatment and disposal and other environmental protection services.9–
    33Heading 9995Services of membership organisations9–
    34Heading 9996 (Recreational,
    cultural and sporting services)    		(i) Services by way of admission or access to
    circus, Indian classical dance including folk
    dance, theatrical performance, drama.    		9–
    (ii) Services by way of admission exhibition of cinematograph films where price of admission ticket is one hundred rupees or less.9–
    (iii) Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, go-carting, casinos, race-course, ballet, any sporting
    event such as Indian Premier League and the like.    		14–
    (iv) Services provided by a race club by way of totalisator or a license to bookmaker in such club.14–
    (v) Gambling14–
    (vi) Recreational, cultural and sporting
    services other than (i), (ii), (iii), (iv) and (v) above.    		9–
    35Heading 9997Other services (washing, cleaning and dyeing
    services; beauty and physical well-being services; and other miscellaneous services including services nowhere else classified).    		9–
    36Heading 9998Domestic services.9–
    37Heading 9999Services provided by extraterritorial organisations and bodies.9–

    2) In case of supply of service specified in column (3) of the entry at item (i) against serial no. 3 of the Table above, involving transfer of property in land or undivided share of land, as the case may be, the value of supply of service and goods portion in such supply shall be equivalent to the total amount charged for such supply less the value of land or undivided share of land, as the case may be, and the value of land or undivided share of land, as the case may be, in such supply shall be deemed to be one third of the total amount charged for such supply.

    Explanation .– For the purposes of paragraph 2, “total amount” means the sum total of,-

    (a) consideration charged for aforesaid service; and

    (b) amount charged for transfer of land or undivided share of land, as the case may be.

    3) Value of supply of lottery shall be 100/112 of the face value or the price notified in the Official Gazette by the organising State, whichever is higher, in case of lottery run by State Government and 100/128 of the face value or the price notified in the Official Gazette by the organising State, whichever is higher, in case of lottery authorised by State Government.

    4) Explanation.- For the purposes of this notification,-

    (i) Goods includes capital goods.

    (ii) Reference to “Chapter”, “Section” or “Heading”, wherever they occur, unless the context otherwise requires, shall mean respectively as “Chapter, “Section” and “Heading” in the annexed scheme of classification of services (Annexure).

    (iii) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of heading 9988.

    (iv) Wherever a rate has been prescribed in this notification subject to the condition that credit of input tax charged on goods or services used in supplying the service has not been taken, it shall mean that,-

    (a) credit of input tax charged on goods or services used exclusively in supplying such service has not been taken; and

    (b) credit of input tax charged on goods or services used partly for supplying such service and partly for effecting other supplies eligible for input tax credits, is reversed as if supply of such service is an exempt supply and attracts provisions of sub-section (2) of section 17 of the Central Goods and Services Tax Act, 2017 and the rules made thereunder.

    (v) “information technology software” means any representation of instructions, data, sound or image, including source code and object code, recorded in a machine readable form, and capable of being manipulated or providing interactivity to a user, by means of a computer or an automatic data processing machine or any other device or equipment.

    (vi) “agricultural extension” means application of scientific research and knowledge to agricultural practices through farmer education or training.

    (vii) “agricultural produce” means any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market.

    (viii) “Agricultural Produce Marketing Committee or Board” means any committee or board constituted under a State law for the time being in force for the purpose of regulating the marketing of agricultural produce.

    5) This notification shall come into force with effect from 1st day of July, 2017.