It mentioned in a round that previous tax dues of ice-cream parlours that attracted GST on the charge of 5% with out enter tax credit score shall be handled as absolutely GST paid to keep away from pointless litigation.
“Because the resolution is just to regularise the previous follow, no refund of GST shall be allowed, if already paid at 18%,” mentioned the CBIC.
It additionally mentioned that charges charged from potential college students for entrance or admission, or for issuance of eligibility certificates and providers related to transit cargo each to and from Nepal and Bhutan, are exempted from GST.
Fines and penalty chargeable by authorities or a neighborhood authority imposed for violation of a statute, bye-laws, guidelines or laws are additionally exempted from GST, mentioned the CBIC.
Exercise of promoting area for commercial in souvenirs revealed within the type of books is eligible for concessional GST charge of 5%, it mentioned.
The round additionally clarified that cancellation costs recovered by lodges, and tour and journey operators, shall be taxed on the identical GST charge as relevant to principal service.
In cases the place an worker’s wage is forfeited or some quantity is recovered pursuant to a bond the place the particular person leaves the employment earlier than the minimal agreed interval, it is going to be exempt from GST.
An electrical automobile, with or with out batteries will entice a 5% GST charge whereas mangoes, apart from contemporary mangoes, sliced mangoes and dried mangoes, will entice a GST charge of 12%. Equally, pulses as cattle feed by the dairy trade will entice 5% GST.
The professional-active step taken by the CBIC by issuance of current clarifications are more likely to be useful to industries throughout numerous sectors.”Saurabh Agarwal, Tax Associate, EY mentioned.
