Integrated Tax Notifications (Rate)

IGST Notification rate 01/2018

Title Seeks to amend notification No. 8/2017- Integrated Tax (Rate) so as to notify IGST rates of various services as recommended by Goods and Services Tax Council in its 25th meeting held on 18.01.2018.
Number 01/2018
Date 25-01-2018
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In exercise of the powers conferred by sub-section (1) of section 5, subsection (1) of section 6 and clause (iii) and clause (iv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (5) of section 15 and subsection (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 makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2017- 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. 683(E), dated the 28th June, 2017, namely:-

In the said notification,

(i) in the Table, –

(a) against serial number 3, in column (3), –

(A)in item (iv),

(I) for sub-item (c), the following sub-item shall be substituted, namely: –

‘(c) a civil structure or any other original works pertaining to the “ln-situ redevelopment of existing slums using land as a resource, under the Housing for
All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban);’;

(II) after sub-item (d), the following sub-items shall be inserted, namely: –

‘(da) a civil structure or any other original works pertaining to the “Economically Weaker Section (EWS) houses” constructed under the Affordable Housing in partnership by State or Union Territory or local authority or urban development authority under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban);

(db) a civil structure or any other original works pertaining to the “houses constructed or acquired under the Credit Linked Subsidy Scheme for Economically
Weaker Section (EWS)/ Lower Income Group (LIG)/ Middle Income Group-1 (MlG-1)/ Middle Income Group-2 (MlG-2)” under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban);’;

(III) after sub-item (f), the following sub-items shall be inserted, namely: –

“(g) a building owned by an entity registered under section 12AA of the Income Tax Act, 1961 (43 of 1961), which is used for carrying out the activities of
providing, centralised cooking or distribution, for mid-day meals under the mid-day meal scheme sponsored by the Central Government, State Government,
Union territory or local authorities.”;

(B) in item (v),

(I) in sub-item (a), for the word “excluding”, the word “including” shall be substituted;

(II) after sub-item (d), the following sub-item shall be inserted, namely: –

“(da) low-cost houses up to a carpet area of 60 square metres per house in an affordable housing project which has been given infrastructure status vide
notification of Government of India, in Ministry of Finance, Department of Economic Affairs vide F. No. 13/6/2009-INF, dated the 30th March, 2017;”;

(C) for item (ix) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: –

(3)(4)(5)
“(ix) Composite supply of works
contract as defined in clause (119) of
section 2 of the Central Goods and
Services Tax Act, 2017
provided by a
sub-contractor to the main contractor
providing services specified in item
(iii) or item (vi) above to the Central
Government, State Government,
Union territory, a local authority, a
Governmental Authority or a
Government Entity.
12Provided that where the services are
supplied to a Government Entity,
they should have been procured by
the said entity in relation to a work
entrusted to it by the Central
Government, State Government,
Union territory or local authority, as
the case may be.
(x) Composite supply of works contract as defined in clause (119) of
section 2 of the Central Goods and
Services Tax Act, 2017
provided by a
sub-contractor to the main contractor
providing services specified in item
(vii) above to the Central
Government, State Government,
Union territory, a local authority, a
Governmental Authority or a
Government Entity.
5Provided that where the services are supplied to a Government Entity,
they should have been procured by
the said entity in relation to a work
entrusted to it by the Central
Government, State Government,
Union territory or local authority, as
the case may be.
(xi) Services by way of housekeeping,
such as plumbing,
carpentering, etc. where the person
supplying such service through
electronic commerce operator is not
liable for registration under subsection
(1) of section 22 of the Central
Goods and Services Tax Act, 2017.
5Provided that credit of input tax
charged on goods and services has
not been taken

[Please refer to Explanation no.
(iv)].

(xii) Construction services other than
(i), (ii), (iii), (iv), (v), (vi), (vii), (viii),
(ix), (x) and (xi) above.
18-“;

(b) against serial number 9, in the entry in column (3), in item (v), for the words “natural gas”, the words and brackets “natural gas, petroleum crude, motor spirit (commonly known as petrol), high speed diesel or aviation turbine fuel” shall be substituted;

(c) against serial number 10, for item (ii) in column (3) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: –

(3)(4)(5)
“(ii) Time charter of vessels for
transport of goods.
5Provided that credit of input tax
charged on goods (other than on
ships, vessels including bulk
carriers and tankers) has not been
taken

[Please refer to Explanation no.
(iv)].

(iii) Rental services of transport
vehicles with or without operators,
other than (i) and (ii) above.
18-“;

(d) for serial number 16 and the entries relating thereto, the following shall be substituted, namely: –

(1)(2)(3)(4)(5)
“16Heading
9972
(i)Services by the Central Government, State
Government, Union territory or local authority to
governmental authority or government entity, by way
of lease of land.
Nil
(ii) Supply of land or undivided share of land by way
of lease or sub lease where such supply is a part of
composite supply of construction of flats etc. specified
in the entry in column (3) against serial number 3, at
item (i); sub-item (b), sub-item (c), sub-item (d), subitem
(da) and sub-item (db) of item (iv); sub-item (b),
sub-item (c), sub-item (d) and sub-item (da) of item
(v); and sub-item (c) of item (vi).

Provided that nothing contained in this entry
shall apply to an amount charged for such lease and
sub-lease in excess of one third of the total amount
charged for the said composite supply. Total amount
shall have the same meaning for the purpose of this
proviso as given in paragraph 2 of this notification.

Nil
(iii) Real estate services other than (i) and (ii) above.18-“;

(e) against serial number 17, for item (vii) in column (3), and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: –

(3)(4)(5)
“(vii) Time charter of vessels for
transport of goods.
5Provided that credit of input
tax charged on goods (other
than on ships, vessels
including bulk carriers and
tankers) has not been taken
[Please refer to Explanation
no. (iv)].
(viii) Leasing or rental services,
with or without operator, other
than (i), (ii), (iii), (iv), (v), (vi) and
(vii) above.
Same rate of
integrated tax as
applicable on
supply of like
goods involving
transfer of title
in goods.
-“;

(f) against serial number 23, against item (i) in column (3), in condition 1 in column (5), after the words “supplying the service”, the words and brackets “, other than the input tax credit of input service in the same line of business (i.e. tour operator service procured from another tour operator)” shall be inserted;

(g) against serial number 23, for item (ii) in column (3) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: –

(3)(4)(5)
“(ii) Services by way of house-keeping, such as
plumbing, carpentering, etc. where the person supplying
such service through electronic commerce operator is
not liable for registration under sub-section (1) of
section 22 of the Central Goods and Services Tax Act,
2017.
5Provided that credit
of input tax charged
on goods and
services has not
been taken

[Please refer to
Explanation no.
(iv)].

(iii) Support services other than (i) and (ii) above.18-“;

(h) against serial number 24,-

(A)in the Explanation to item (i) in column (3), in clause (i), after sub-clause (g), the following sub-clause shall be inserted, namely :-

“(h) services by way of fumigation in a warehouse of agricultural produce.”;

(B) for item (ii) in column (3) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: –

(3)(4)(5)
“(ii) Service of exploration, mining or drilling of petroleum crude or
natural gas or both.
12
(iii) Support services to mining, electricity, gas and water distribution
other than (ii) above.
18-“;

(i) for serial number 25 and the entries relating thereto, the following shall be substituted, namely:-

(1)(2)(3)(4)(5)
“25Heading
9987
(i) Services by way of house-keeping, such as
plumbing, carpentering, etc. where the person
supplying such service through electronic commerce operator is not liable for
registration under sub-section (1) of section 22
of the Central Goods and Services Tax Act,
2017
5Provided that
credit of input tax
charged on goods and services has
not been taken

[Please refer to
Explanation no.
(iv)].

(ii) Maintenance, repair and installation
(except construction) services, other than (i)
above.
18-“;

(j) against serial number 26, in column (3),-

(A) in item (i), after sub-item (e), the following sub-item shall be inserted, namely: –

“(ea) manufacture of leather goods or footwear falling under Chapter 42 or 64 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) respectively;”;

(B) for item (iii) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: –

(3)(4)(5)
“(iii) Tailoring services.5
(iv) Manufacturing services on physical inputs (goods) owned by others,
other than (i), (ia), (ii), (iia) and (iii) above.
18-“;

(k) for serial number 32 and the entries relating thereto, the following shall be substituted, namely:-

(1)(2)(3)(4)(5)
“32Heading
9994
(i)Services by way of treatment of effluents by a
Common Effluent Treatment Plant.
12
(ii) Sewage and waste collection, treatment and
disposal and other environmental protection services
other than (i) above.
18-“;

(l) against serial number 34, in column (3),

(A) for item (iii) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: –

(3)(4)(5)
“(iii) Services by way of admission to amusement parks including
theme parks, water parks, joy rides, merry-go rounds, go-carting and
ballet.
18
(iiia) Services by way of admission to entertainment events or access to
amusement facilities including exhibition of cinematograph films,
casinos, race club, any sporting event such as Indian Premier League
and the like.
28-“;

(B) in item (vi), after the brackets and figures “(iii)”, the brackets and figures “(iiia),” shall be inserted;

(ii) for paragraph 2, the following shall be substituted, namely: –

“2. In case of supply of service specified in column (3), in item (i); sub-item (b), sub-item (c), sub-item (d), sub-item (da) and sub-item (db) of item (iv);
sub-item (b), sub-item (c), sub-item (d) and sub-item (da) of item (v); and sub-item (c) of item (vi), against serial number 3 of the Table above,
involving transfer of land or undivided share of land, as the case may be, the value of such supply shall be equivalent to the total amount charged for such
supply less the value of transfer of land or undivided share of land, as the case may be, and the value of such transfer 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 this paragraph, “total amount” means the sum total of,-

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