GST Rates for Services 2017: List of all services Taxable in GST Regime

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GST Rates for Services 2017: List of all services Taxable in GST Regime. GST Rate Chart on Services & List of Services Exempt from GST. Schedule of GST Rates for Services as Approved By GST Council on 19th May 2017. GST Rate list for Services in India. Percentage of service tax payable under GST Regime.The fitment of rates of services were discussed on 19 May 2017 during the 14th GST Council meeting held at Srinagar, Jammu & Kashmir. The Council has broadly approved the GST rates for services at Nil, 5%, 12%, 18% and 28% as listed below. The information is being uploaded immediately after the GST Council’s decision and it will be subject to further vetting during which the list may undergo some changes. The decisions of the GST Council are being communicated for general information and will be given effect to through gazette notifications which shall have force of law.

GST Rates for Services

Changes in GST Rates on 10-11-2017

(A) Exemptions / Changes in GST Rates / ITC Eligibility Criteria

  1. All stand-alone restaurants irrespective of air conditioned or otherwise, will attract 5% without ITC. Food parcels (or takeaways) will also attract 5% GST without ITC.
  2.  Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC.
  3. Restaurants in hotel premises having room tariff of Rs 7500 and above per unit per day (even for a single room) will attract GST of 18% with full ITC.
  4. Outdoor catering will continue to be at 18% with full ITC.
  5. GST on services by way of admission to “protected monuments” to be exempted.
  6. GST rate on job work services in relation to manufacture of those handicraft goods in respect of which the casual taxable person has been exempted from obtaining registration, to be reduced to 5% with full input tax credit.

B) Rationalization of certain exemption entries

  • The existing exemption entries with respect to services provided by Fair Price Shops to the Central Government, State Governments or Union Territories by way of sale of food grains, kerosene, sugar, edible oil, etc. under Public Distribution System (PDS) against consideration in the form of commission or margin, is being rationalized so as to remove ambiguity regarding list of items and the category of recipients to whom the exemption is available.
  •  In order to maintain consistency, entry at item (vi) of Sr. No.3 of notification No. 11/2017-CT(R) will be aligned with the entries at items (ii), (iii), (iv) and (v) of SI.No.3. [The word “services” in entry (vi) will be replaced with “Composite supply of Works contract as defined in clause 119 of Section 2 of CGST Act, 2017”].
  • In order to obviate dispute and litigation, it is proposed that irrespective of whether permanent transfer of Intellectual Property is a supply of goods or service.-
  • (i) permanent transfer of Intellectual Property other than Information Technology software attracts GST at the rate of 12%; and
  • (ii) permanent transfer of Intellectual Property in respect of Information Technology software attracts GST at the rate of 18%.

(C) Clarifications

  1. It is being clarified that credit of GST paid on aircraft engines, parts & accessories will be available for discharging GST on inter–state supply of such aircraft engines, parts & accessories by way of inter-state stock transfers between distinct persons as specified in section 25 of the CGST Act.A Circular will be issued clarifying that processed products such as tea (i.e. black tea, white tea etc.), processed coffee beans or powder, pulses (de-husked or split), jaggery, processed spices, processed dry fruits & cashew nuts etc. fall outside the definition of agricultural produce given in notification No. 11/2017-CT(R) and 12/2017-CT(R) and therefore the exemption from GST is not available to their loading, packing, warehousing etc.
  2. A suitable clarification will be issued that (i) services provided to the Central Government, State Government, Union territory under any insurance scheme for which total premium is paid by the Central Government, State Government, Union territory are exempt from GST under Sl. No. 40 of notification No. 12/2017-Central Tax (Rate);  (ii) services provided by State Government by way of general insurance (managed by government) to employees of the State government/ Police personnel, employees of Electricity Department or students are exempt vide entry 6 of notification No. 12/2017-CT(R) which exempts Services by Central Government, State Government, Union territory or local authority to individuals.

3. It is proposed to issue notifications [giving effect to these recommendations of the Council] on 14th/15th November, 2017, to be effective from 00hrs on 15th of November, 2017.

Changes in GST Rates for Services on Recent GST Meeting on 06-10-2017

Decisions taken by the GST Council in the 22nd meeting held on 6th October 2017 (06-10-2017)

The following decisions were taken by the GST Council at its 22nd meeting held in Vigyan Bhavan on 6th October, 2017. The information is being uploaded immediately after the GST Council’s decision and it will be subject to further vetting during which the list may undergo some changes. The decisions of the GST Council are being communicated for general information and will be given effect to through gazette notifications which shall have force of law.

Relief to small units:

1. GST rates on job work services is being rationalised as follows: –

Description of Service Rate
Job work services in relation to all products falling in Chapter 71 (including imitation jewellery) 5%
Job work services in relation to food and food products falling under Chapters 1 to 22 of the HS Code (except packing of processed milk into packets) 5%
Job work services in relation to products falling under Chapters 23 of the HS Code except dog and cat food put up for retail sale (CTH 23091000) 5%
Job work in relation to manufacture of umbrella 12%
Job work in relation to manufacture of clay bricks falling under CTH 69010010 5%
Services by way of printing on job work basis or on goods belonging to others in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @ 5% or Nil [Heading 9988] 5%
Services by way of printing on job work basis or on goods belonging to others in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @ 12% [Heading 9988] 12%
Services by way of printing on job work basis or on goods belonging to others in relation to printing of goods falling under Chapter 48 or 49, other than those covered by (6) and (7) above, [Heading 9988] 18%
Services by way of printing in relation to printing of all goods falling under Chapter 48 or 49, which attract GST @ 5% or Nil, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer [(Heading 9989)] 12%
Services by way of printing of all goods falling under Chapter 48 or 49 which attract GST @12%, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer 12%
Services by way of printing of all goods falling under Chapter 48 or 49 which attract GST @18% or above, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer 18%
To issue a clarification with regard to classification of printing products/services.

2. If a dealer who makes supplies of goods and services referred to in clause (b) of paragraph 6 of Schedule II of CGST Act and /or also receives interest income or makes supply of 2 any exempt service, (s)he will not be ineligible for the Composition Scheme under Section 10 provided all other conditions are met. Further, in computing his aggregate turnover in order to determine his eligibility for composition scheme, interest income and value of supply of any exempt services shall not be taken into account. Removal of Difficulty order under section 172 of CGST/SGST/UTGST Act will be issued.

3. The services provided by a GTA to an unregistered person (under GST law) including unregistered casual taxable person other than the recipients liable to pay tax on GTA services under reverse charge shall be exempted from GST.

4.1 Leasing of vehicles purchased and leased prior to 1.7.2017, shall be taxed at 65% of the applicable GST + Cess rate. This reduced rate would be applicable for a period of 3 years with effect from 1st July 2017;

4.2 The vehicles covered by the above leases (i.e. leases of vehicles purchased and leased prior to 1.7.2017), when disposed off/ sold shall also be taxed at 65% of the applicable GST + Cess rate. This reduced rate would be applicable for a period of 3 years with effect from 1st July 2017;

4.3 Sale/supply of vehicles by a registered person, who had procured the vehicle prior to 1st July 2017 and has not availed input tax credit of central excise duty, VAT or any other taxes paid on such vehicles, would be taxed at 65% of the applicable GST + Cess rate. This reduced rate would be applicable for a period of 3 years with effect from 1st July 2017.

4.4 Sale by way of auction etc. of used vehicles, seized and confiscated goods, scrap etc by Central Government, State Government, Union Territory or a local authority, to any person, to be subjected to GST under reverse charge under section 9 (3) of the CGST Act.

5. Transport of passengers by motor cab/ renting of motor cab:-

  • (i) GST of 5% without ITC and 12% with full ITC available to transport of passengers by motor cab/ renting of motor cab shall be extended to any motor vehicle;
  • (ii) ITC of input services shall be allowed in the same line of business at GST rate of 5%

Other rate changes in services:

  1. Works contract services involving predominantly earth works (that is, constituting more than 75% of the value of the works contract) supplied to Central Government, State Governments, Local Authority, Governmental Authority or Government Entity shall be taxed at 5%.
  2. To expand the existing definition of Governmental Authority so as to include any authority set up to carry out any functions entrusted to a Panchayat under Article 243G of the Constitution.
  3. Supply of service or goods by a Government Entity to Central Government, State Government, Union Territory, Local Authority or any person specified by them against 3 consideration received from them in the form of grants, shall be exempted. “Government Entity” shall be defined as an authority or a board or any other body including a society, trust, corporation which is, –
    • (i) set up by an Act of Parliament or State Legislature, or
    • (ii) established by any government,
    • with 90% or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government or a local authority
  4. The reduced rate of 12% on specified works contract services supplied to the Central Government, State Government, Union Territory, Local Authority and Governmental Authority shall be extended to a Government Entity, where such specified works contract services have been procured by the government entity in relation to the work entrusted to it by the Central Government, State Government, Union Territory or Local Authority.
  5. GST shall be levied @ 12% on works contract services in respect of offshore works contract relating to oil and gas exploration and production (E&P) in the offshore area beyond 12 nautical miles.
  6. GST shall be levied @ 12% with ITC or 5% without ITC for transportation of natural gas through pipeline.
  7. Exemption to annuity paid by NHAI (and State authorities or State owned development corporations for construction of roads) to concessionaires for construction of public roads.
  8. Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service, by way of granting of long term lease of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations/ Undertakings or any other entity having 50% or more ownership of Central Government, State Government, Union Territory to (a) industrial units or (b) developers in any industrial or financial business area, may be exempted from GST .
  9. The services provided by Overseeing Committee members to RBI shall be taxed under the reverse charge mechanism under section 9(3) of the CGST Act, 2017.
  10. Some other technical changes/amendments shall be made in notifications issued under CGST, IGST, UTGST and SGST Acts.

Click Here for Official Press Release

Decisions taken on Services at 20th GST Council Meeting on 5 August, 2017

Description of service From to
Job work services in respect of the textiles and textile products (including MMF yarn, garments, made-ups, etc. falling in Chapters 50 to 63) 18%/5% 5%
Services by way of printing of newspapers, books (including Braille books), journals and periodicals where only content is supplied by the publisher and the physical inputs including paper used for printing belongs to the printer 18% with full
ITC
12% with full
ITC
Services by way of printing of newspapers, books (including Braille books), journals and periodicals using physical inputs owned by others (including an unregistered publisher/supplier) 18% with full
ITC
5% with full
ITC
Works contract services provided to Government, local authority or
governmental authority and in respect of post-harvest storage infrastructure for agricultural produce, mechanized food grain handling system
18% with full
ITC
12% with full
ITC
Margin/commission payable to Fair Price Shop Dealers by Central/ State Governments 18% with full
ITC
Nil
Admission to planetarium 28% with full ITC 18% with full ITC
Rent-a-cab service Allowed option of 12% GST
with full ITC. 5% GST with no
ITC will also continue
Goods Transport Agency Service (GTA) Allowed option of 12% GST
with full ITC under forward
charge. 5% GST with no ITC
will also continue. (However,
the GTA has to give an option at the beginning of financial year)
In case of small house-keeping service providers (plumbers/carpenters) providing services through Electronic Commerce Operators (ECO), liability to pay GST placed on ECO
Partnership firm or a firm includes LLP ( Limited liability Partnership) for the purposes of levy (including exemption therefrom) of GST on legal services.
To clarify that legal services (including representational services) provided by an individual advocate or a senior advocate or a firm of advocates (including LLP) provided to a business entity in taxable territory are covered under reverse charge mechanism
Goods required by FIFA and Services provided by and to FIFA and its subsidiaries in connection with FIFA U-17 World Cup to be hosted in India in 2017 shall be exempted from GST
New crop insurance schemes Pradhan Mantri Fasal Bima Yojana (PMFBY) introduced from Kharif 2016- 17 in place of National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS), and Restructured Weather Based Crop Insurance Scheme (RWCIS) introduced in place of Weather Based Crop Insurance Schemes , shall be extended exemption from GST.

GST Rates on Services Decided on 18-06-2017

1. It has been decided in respect of the service of transport of goods by a vessel that GST rate of 5% will be available with ITC in respect of input services and GST paid on ships, vessels including bulk carriers and tankers.

2. It has been decided that accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff is Rs 2500/- and above but less than Rs 7500/- per room per day shall attract GST rate of 18% with full ITC.

3. Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent is Rs 7500/- and above per day per room shall attract GST rate of 28% with full ITC.

4. Supply of Food/drinks in air-conditioned restaurant in 5-star or above rated Hotel shall attract GST rate of 18% with full ITC.

S.No Description of Services GST Rate
5 Transport of goods in a vessel including services provided or agreed to be provided by a person located in non-taxable territory to a person located in nontaxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India 5% with ITC of input services and ITC of GST paid on ships, vessels including bulk carriers and tankers
24 Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff is Rs 2500/ and above but less than Rs 7500/- per room per day 18% With Full ITC
31 Supply of Food/drinks in air-conditioned restaurant in 5-star or above rated Hotel 18% With Full ITC
32 Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent is Rs 7500/- and above per room per day 28% With Full ITC

II. It has been decided that supply of lottery shall attract GST rates as under

  • Lottery run by State Governments – 12% of face value of lottery ticket
  • Lottery authorized by State Governments – 28% of face value of lottery ticket

GST Revised Rates List on 11-06-2017 (Services)

Decisions in regard to Services taken by the GST Council in the 16th meeting held on 11th of June 2017

1. In the list of service tax exemptions to be continued in GST as approved by the GST Council, after S.No. 83, the following shall be inserted –

S.No Proposal/ request
84 Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to Government, a local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or to any function entrusted to a Municipality under Article 243W of the Constitution
85 Services provided to the Government under any insurance scheme for which total premium is paid by Government
86 Services provided to the Government under any training programme for which total expenditure is borne by the Government

2. In the schedule of GST Rates for Services as approved by the GST Council, after S.No. 13, the following shall be inserted –

S.No Description of Services GST Rate
13A Services by way of job work in relation to –

  • a) Textile yarns (other than man-made fibre/filament) & textile fabrics
  • b) Cut and polished diamonds; precious and semi-precious stones, or plain and studded jewellery of gold and other precious metals, falling under chapter 71 of HSN
  • c) Printing of books (including braille books), journals and periodicals
  • d) Processing of leather
5% with Full ITC
27A Services by way of right to admission to exhibition of cinematographic films where the consideration for admission is Rs. 100 or less. 18% with Full ITC

3. Exemption from registration under section 23(2) of the CGST Act 2017 of –

  • 1. Individual advocates (including senior advocates)
  • 2. Individual sponsorship service providers (including players)

Schedule of GST Rates for Services as Approved By GST Council

S. No. DESCRIPTION OF SERVICES GST RATE
1. Transport of goods by rail 5% with ITC of input services
2. Transport of passengers by rail (other than sleeper class) 5% with ITC of input services
3. Services of goods transport agency (GTA) in relation to transportation of goods [other than used household goods for personal use] 5% No ITC
4. Services of goods transport agency in relation to transportation of used household goods for personal use. 5% No ITC
5. Transport of goods in a vessel including services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India 5% with ITC of input services
6. Renting of motorcab

(If fuel cost is borne by the service recipient, then 18% GST will apply)

5% No ITC
7. Transport of passengers, by-

  • (i) Air conditioned contract/stage carriage other than motorcab;
  • (ii)a radio taxi.
5% No ITC
8. Transport of passengers by air in economy class 5% with ITC of input services
9. Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport. 5% with ITC of input
10. Supply of tour operators’ services 5% No ITC
11. Leasing of aircrafts under Schedule II [5 (f)] by a scheduled airlines for scheduled operations 5% with ITC of input services
12. Selling of space for advertisement in print media 5% With Full ITC
13. Services by way of job work in relation to printing of newspapers; 5% With Full ITC
14. Transport of goods in containers by rail by any person other than Indian Railways 12% With Full ITC
15. Transport of passengers by air in other than economy class 12% With Full ITC
16. Supply of Food/drinks in restaurant not having facility of air-conditioning or central heating at any time during the year and not having licence to serve liquor. 12% With Full ITC
17. Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having room tariff Rs.1000 and above but less than Rs.2500 per room per day 12% With Full ITC
18. Services provided by foreman of chit fund in relation to chit 12% with ITC of input services
19. Construction of a complex, building, civil structure or a part thereof, intended for sale to a buyer, wholly or partly.

[The value of land is included in the amount charged from the service recipient]

12% With Full ITC but no refund of overflow of ITC
20. Temporary transfer or permitting the use or enjoyment of any Intellectual Property (IP) to attract the same rate as in respect of permanent transfer of IP; 12% with full ITC
21. Supply of Food/drinks in restaurant having licence to serve liquor 18% With Full ITC
22. Supply of Food/drinks in restaurant having facility of air-conditioning or central heating at any time during the year 18% With Full ITC
23. Supply of Food/drinks in outdoor catering 18% With Full ITC
24. Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff of Rs 2500/ and above but less than Rs 5000/- per room per day 18% With Full ITC
25. Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing  a  function) together with renting of such premises 18% With Full ITC
26. Services by way of admission or access to circus, Indian classical dance including folk dance, theatrical performance, drama 18% With Full ITC
27. Composite supply of Works contract as defined in clause 119 of section 2 of CGST Act 18% With Full ITC
28. 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 IPL and the like; 28% With Full ITC
29. Services provided by a race club by way of totalisator or a licensed bookmaker in such club; 28% With Full ITC
30. Gambling; 28% With Full ITC
31. Supply of Food/drinks in air-conditioned restaurant in 5-star or above rated Hotel 28% With Full ITC
32. Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent is Rs 5000/- and above per night per room 28% With Full ITC
33. 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 (supply  of  service)  to  attract  the  same  GST  rate  and  compensation  cess  as applicable on supply of similar goods which involves any transfer of title in goods (supply of goods) Same rate of GST and     compensation cess as on supply of similar goods
34. Any transfer of right in goods or of undivided share in goods without the transfer of title thereof (supply of services) to attract the same GST rate and compensation cess as applicable on supply of similar goods which involves any transfer of title in goods (supply of goods). Same rate of GST and     compensation cess as on supply of similar goods
35. Supply consisting of transfer of title in goods under an agreement which  stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed (supply of goods): value of leasing services shall be included in the value of goods supplied. GST and compensation cess as on supply of similar goods
36. All other services not specified elsewhere 18% With Full ITC

Next Article – List of All Services Exempted in GST Regime

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38 COMMENTS

  1. Till now no clarity on GST.what type of document required for issuing invoices,any waybill,challan etc required

  2. Sir we want to know what will be GST on the following:1) School Fees collection
    2) Transport Fees collection
    3)School materials sold like Text books,Books,uniforms & other material related school

  3. hum ek car airconditoner workshop chalate hai, kya gst ke andar hum spare parts and service charges ka ek bill raise kar sakte hain. 2 aalag aalag bill to nahin banae hain.

  4. We have to buy a product and sending for work contract than we dispatch to final user, how is the transaction in GST where i have to pay and which are documents are require?

  5. Respeted Sir,I work for a construction company as a men power supplier.Am I under GST?Please explain about this.
    Thanking you.

  6. Dear Sir

    How much rate of tax in GST regime on services of Manpower,GTA,Security Services,Civil work, Job Work, Motor Cap,Work Contract.

    sir, please advise to me about procedure of ITC on above services.

  7. Dear Sir

    How much rate of tax in GST regime on services of Manpower,GTA,Security Services,Civil work, Job Work, Motor Cap,Work Contract.

    sir, please advise to me about procedure of ITC on above services.

  8. Dear Sir,

    we are manufacturer and registerd in excise and service tax we were credit in excise of gta inward services
    now can we credit of gta inward service in gst so please clear this point

  9. Sir,
    We all know about invoice under reverse charge mechanism applicable , if purchase/service received from a unregistered firm. I am having the query reg, that in Account point of view this purchase/service may meant for specific purchase or expenses head, which will directly hit to ledger. where as we require to prepare a Tax Invoice and to mention item/service name , its HSN/service code, Rate of Tax, and finally calculated Out put Tax which will be hit to liability head in Books of Accounts. Let me know how can we maintain the same in our Books of Accounts to produce the record before GST Authority during Assessment if any in future. AND what are the procedure to fill details in GST Return, if these Invoice having more than one item. will we require to mention all item HSN / Service Code in return ? Please explain

  10. 1) housing complex maintenance for hsn code and gst ?
    2) Boiler water neutralization for hsn code and gst ?
    3) house keeping for hsn code and gst ?

  11. Hi
    we are in the business of Aluminium Anodizing. Previously, Anodizing service was not in the list of 91 services under Service Tax and was under the Exempted Services List. Now in the GST Regime, it is not specified under any list, neither the Exempted list nor the Chargeable list. Could someone here provide authentic information about Anodizing.

  12. Sir/Madam ,
    Kindly let me know the GST Rate for Diet Contract for Government Hospital

    All Services are free to patients including Diet/food provided to the patients.
    The monthly turnover of Diet/food contract is around rupees eight to nine lakh per month.

    kindly let me know whether GST is applicable or not if yes
    what is GST Rate if,
    a) Complete Kitchen & Equipment is provided by the hospital
    b) Only Kitchen is provided by the Hospital.

  13. From when we should change revised GST job work rates from 18% to 5% as per the latest notification as in “Changes in GST Rates for Services on Recent GST Meeting on 06-10-2017” – Item no. 1 for Chapter 71.

  14. Sir/Madam ,
    We are basically Electrical Contractors We use to take Govt and Private Contract Works.
    Please let me know the SAC code for
    1) Engineering Consultancy service / work for Industries ( related to Govt Works)
    2) Govt Works Contract
    3) Also we are manufacturer of Electrical Goods

  15. for protection of my building premises by private security agency what is the GST applicability? Why shouldn’t it be fully exempted like electricity and water charges paid

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