The CBIC has issued Circulars on 15th July, 2024, clarifying GST rates on goods and services to give effect to the recommendations of the GST Council in its 53rd meeting. held on 22nd June, 2024. These Clarifications addresses the issues relating to 

These Circulars are summarized as under:

A. Clarifications regarding applicability of GST on Services – (Circular No. 228/22/2024-GST):  Circular to provide clarifications on GST applicability and address operational challenges faced by the Ministry of Railways, real estate regulators, digital payment facilitators, and the insurance sector. It also retrospectively regularizes GST liabilities in several cases to ensure past compliance issues. 

Clarifications:

1. GST Exemption For Railways: The GST Council recognized difficulties faced by the Ministry and has now exempted specific services provided by Indian Railways to the public, such as: (a) Sale of platform tickets (b) Retiring rooms (c) Cloakroom services (d) Battery-operated car services. Exemptions also apply to services exchanged between various zones/divisions within Indian Railways (vide Notification No. 04/2024-Central Tax (Rate) w.e.f. 15.07.2024).
   The exemption is regularized retrospectively for the period from 20.10.2023 to 14.07.2024.
2. GST Exemption on Transactions Between SPVs and Ministry of Railways:  Earlier, 48th GST Council meeting had clarified that services provided by SPVs to Indian Railways and maintenance services by Indian Railways to SPVs were taxable. Now, by 53rd GST Council Meeting, Council now exempts these transactions from GST (vide Notification No. 04/2024-Central Tax (Rate) w.e.f. 15.07.2024).
   This exemption is also regularized for the period from 01.07.2017 to 14.07.2024.
   
3. GST on Statutory Collections by RERA:  Statutory collections made by RERA, as a governmental authority, fall under Entry No. 4 of notification No. 12/2017-CT(R) dated 28.06.2017, and are thus exempt from GST.
4. GST on Incentives in Digital Payment Ecosystem: Incentives paid by MeitY to acquiring banks for promoting RuPay Debit Cards and BHIM-UPI transactions were previously clarified as non-taxable. Now, it is clarified that “Further sharing of these incentive amount by the acquiring banks with other stakeholders (issuer banks, Payer PSPs, UPI apps, and TPAPs), upto the point where the incentive is distributed in the proportion and manner as decided by NPCI in consultation with the participating banks under the Notified Incentive Scheme is considered a subsidy and thus, non-taxable.
   
5. GST on Reinsurance of Specified General and Life Insurance Schemes:  GST liability on reinsurance for certain exempt general insurance and life insurance schemes from 01.07.2017 to 24.01.2018 is regularized on an ‘as is where is’ basis.
6. GST on Reinsurance of Government-Sponsored Insurance Schemes:  Reinsurance of insurance schemes fully paid by the government is exempt from GST under Serial No. 40 of NN. 12/20217 -Central Tax (Rate), now it is clarified that the liability from 01.07.2017 to 26.07.2018 is regularized on an ‘as is where is’ basis.
7. GST on Retrocession Services:  Retrocession, a reinsurance transaction where part of the reinsured risk is further ceded to another insurer or cross-border reinsurer, is included under the term ‘reinsurance’ as per Sl. No. 36A of notification No. 12/2017-CT(R) dated 28.06.2017, and is thus treated similarly for GST purposes. Now, it is clarified that term ‘Reinsurance' as mentioned in Serial No. 36A of NN. 12/2017 -CT(Rate) includes ‘Retrocession' services. 
8. GST on Certain Accommodation Services:  Accommodation services valued at or below ₹20,000 per person per month for a continuous period of at least 90 days are exempt from GST, effective from 15.07.2024. (vide Notification No. 04/2024-Central Tax (Rate) w.e.f. 15.07.2024).
   
   It is now clarified that the Past transactions meeting these criteria from 01.07.2017 to 14.07.2024 are also regularized on an ‘as is where is’ basis.

The Complete Circular can be accessed at https://taxo.online/wp-content/uploads/2024/07/Circular-No-228-2024.pdf

 

B. Clarifications regarding applicability of GST rates on Goods – (Circular No. 229/23/2024-GST):  Circular to provide clarifications on GST rate applicability on specified goods. It also retrospectively regularizes GST liabilities in several cases to ensure past compliance issues. 

Clarifications: 

1. GST rate on Solar Cookers: It is clarified that solar cookers that work on dual energy of solar energy and grid electricity are appropriately classifiable under heading 8516 and already attract a GST rate of 12% vide SI. No. 201A of Schedule II of notification No. 1/2017-Central Tax (Rate) dated the 28^th June, 2017.
2. GST rate on Fire Water Sprinklers: It is hereby clarified that all types of sprinklers, including fire water sprinklers attract GST at the rate of 12% vide SI. No. 195 B of Schedule II of notification No. 1/2017-Central Tax (Rate) dated the 28^th June, 2017. The issues for the past period are regularized on “as is where is basis”. 
3. GST rate on parts of Poultry-keeping machinery:  The relevant entry at SL 199 of Schedule II of notification No. 1/2017-Central Tax (Rate) dated the 28^th June, 2017 , has been amended vide notification No. 2/2024-Central Tax (Rate), dated the 12^th July, 2024 to specifically include ‘parts' of Poultry-keeping machinery. The issues for the past period are regularized on “as is where is basis”.
4. Scope of expression ‘pre-packaged and labelled' for supply of agricultural farm produce:- The definition of ‘pre-packaged and labelled' has been amended as provided under Goods Exemption Notification and Goods Rate Notification, to exclude the supply of agricultural farm produce in package(s) of commodities containing quantity of more than 25 kilogram or 25 litre from the scope of ‘pre-packaged and labelled'. Consequently, supply of agricultural farm produce in package (s) containing quantity of more than 25 kilogram or 25 litre will not attract GST levy of 5%. The issues for the past period are hereby regularized on “as is where is”.
5. Supplies of goods made to or by agency engaged by Government:  The issues for the past period from O1.07.2017 up to 17.07.2022 are hereby regularized on “as is where is” basis for supplies made to or by any agency engaged by Union Government or State Government/Union Territory for procurement and sale of such goods under any programme/scheme duly approved by the Central Government or any State Government intended to distribute such goods at free of cost or at subsidized rate to the eligible beneficiaries like economically weaker sections of the society. These are subject to certain conditions as prescribed

The Complete Circular can be accessed at https://taxo.online/wp-content/uploads/2024/07/Circular-No-229-2024.pdf