How does it Impact Us?

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31st GST Council Meeting


  • Additions in Reverse Charge

3 Services have been added under reverse charge mechanism, leading to total of 14 services being covered under RCM w.e.f from 1st Jan 2019.

Service

By
(Supplier)

To
(Recipient)

Security Services

(Supply of Security Personnel)[1]

Any person other than body
corporate

Registered Person in taxable
territory

Services provided by business facilitator (BF) to a
banking company

Business facilitator (BF)

A banking company, located in the taxable territory

Services provided by an agent of business correspondent
(BC) to business correspondent (BC).

An agent of business correspondent (BC)

A business correspondent, located in the taxable territory

[1] Not applicable to Government Department, local authority or  governmental agencies registered only for GST TDS (Sec 51 of CGST Act,2017 ; and Composition dealers

MAJOR IMPACT: From 1st Jan 2019 you have to pay GST under RCM when receiving security services from a person other than body corporate at 18%.

 

  • Change in rates of Services

The rates of following services have been changed w.e.f from 1st Jan 2019.

Service

Tax
Rate

Leasing or renting of goods

Same rate of central
tax as applicable on supply of like goods involving transfer of title in
goods

Service of third party insurance of “good
carriage”

12%

Service by way
of construction or
engineering or installation or
other technical services, provided in
relation of setting up of
following, –

Bio-gas plant

Solar power based
devices

Solar power generating system

Wind mills, Wind
Operated Electricity Generator (WOEG)

Waste to energy plants / devices

Ocean waves/tidal waves
energy devices/plants[1]

 

 

 

 

18%

 

MAJOR IMPACT: If you lease or rent goods then, GST rate shall be equal to rate applicable on sale of such goods. This is applicable if specific rate of leasing/renting is not mentioned.

  • Additions in Services exempted from GST

Following services have been exempted from GST w.e.f from 1st Jan 2019.

 

HSN

Service

9965 /
9967

Services
provided by GTA by way of transport of goods to Government
department/establishment/agencies or local authority registered only for GST
TDS (sec 51)

 

 9971

Services provided by a banking company to Basic Saving
Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana
(PMJDY)

 

MAJOR IMPACT: Goods Transport Agency and Banks

 

Note : The article briefly covers major points of various Notifications issued after GST council meeting. For a detailed update kindly refer the notifications or contact us.

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Jan 01, 2019 - Blog - Team SSB



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