The CBIC has issued various GST-related clarifications and amendments discussed in the 54th GST Council meeting. These Circulars deals clarifications and amendments related to the applicability and regularization of GST across various services, ensuring compliance and addressing historical ambiguities. Also, ensure the correct application of GST on different categories of products. 

A. Circular No. 234/28/2024-GST dated 11.10.2024:  Clarifications regarding applicability of GST on certain services

1. Affiliation Services by Universities to Colleges:

• Clarification: Affiliation services provided by universities to colleges are taxable under GST at 18%. These services are not related to the admission of students or the conduct of examinations, and therefore, they do not fall under the exemption for educational institutions.
• Effective Date: This clarification follows recommendations from the 54th GST Council.

2. Affiliation Services by Educational Boards to Schools:

• Clarification: Affiliation services provided by Central and State educational boards, councils, or similar bodies to schools are taxable at 18%. However, affiliation services provided to government schools (established or controlled by the government) are exempt from GST, effective from 10th October 2024.
• Past Period Regularization: GST liability for affiliation services provided between 01.07.2017 and 17.06.2021 will be regularized on an “as is where is” basis, covering this past period.

3. Flying Training Courses Approved by DGCA:

• Clarification: DGCA-approved flying training courses conducted by Flying Training Organizations (FTOs) are exempt from GST under Notification No. 12/2017-Central Tax (Rate), as they provide qualifications recognized under law.
• Rationale: These courses lead to the issuance of completion certificates mandated by DGCA, thus qualifying as education services under GST exemptions.

4. Passenger Transport by Helicopter:

• Clarification: The GST rate on passenger transport by helicopter (on a seat-share basis) is 5%, effective from 10th October 2024.
• Regularization: Past GST payments from 01.07.2017 to 09.10.2024 on this type of service will be regularized on an “as is where is” basis.
• Charter Operations: The GST rate on helicopter charter operations remains at 18%.

5. Ancillary Services by Goods Transport Agencies (GTAs):

• Clarification: Incidental services (loading, unloading, packing, etc.) provided by GTAs as part of transportation of goods by road will be treated as a composite supply and taxed at the same rate as the transport service. If these services are billed separately and not part of the transportation, they will be treated as independent supplies.

6. Import of Services by Foreign Airline Companies:

• Clarification: Import of services by an establishment of a foreign airline company from related persons or other establishments outside India, without consideration, is exempt from GST from 10th October 2024.
• Past Period Regularization: The GST payments on such services between 01.07.2017 and 09.10.2024 will be regularized on an “as is where is” basis.

7. Preferential Location Charges (PLC) in Real Estate:

• Clarification: PLC, when charged for choosing a location of an apartment or property, is part of the consideration for construction services and attracts GST at the same rate as construction services, before the issuance of the completion certificate.

8. Support Services by Electricity Distribution Utilities:

• Clarification: Services like meter testing, shifting of service lines, issuing duplicate bills, and renting metering equipment, provided by electricity transmission and distribution utilities, are exempt from GST from 10th October 2024.
• Past Period Regularization: GST liability for these services from 01.07.2017 to 09.10.2024 will be regularized on an “as is where is” basis.

9. Services by Film Distributors and Exhibitors:

• Clarification: Transactions between distributors and exhibitors (theatrical rights) prior to 01.10.2021 were subject to 18% GST. The GST Council recommended regularizing payments for the period 01.07.2017 to 30.09.2021 on an “as is where is” basis.

The Circular can be accessed at https://taxo.online/wp-content/uploads/2024/10/cir-cgst-234-2024.pdf

B. Circular No. 235/29/2024-GST dated 11.10.2024: Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 54th meeting held on 9 th September 2024 at New Delhi

1. GST on Extruded/Expanded Savoury Food Products:

• Issue: Clarification was sought regarding the classification and GST rate on savoury or salted extruded snack pellets.
• Clarification: From 10.10.2024, extruded or expanded savoury products (other than un-fried or un-cooked snack pellets made via extrusion) falling under HS 1905 9030 will attract 12% GST, similar to namkeens, bhujia, and other similar products.
• Retroactive Rate: For the past period, i.e., before 10.10.2024, an 18% GST rate will apply to these products. Un-fried or un-cooked snack pellets will continue to attract a 5% GST rate.

2. GST on Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways:

• Issue: Clarification was sought regarding whether these air conditioners should be classified under HS 8415 (28% GST) or HS 8607 (18% GST).
• Clarification: RMPU Air Conditioning Machines for railways fall under HS 8415 (Air Conditioning Machines) and attract a 28% GST rate, as machines of heading 8415 are excluded from the ‘parts' under heading 8607.

3. GST on Car and Motorcycle Seats:

• Issue: Clarification was sought regarding the classification and GST rates on seats for four-wheeled cars and two-wheelers.
• Clarification:
  • Seats for Two-Wheelers: Classified under HS 8714 (Parts and Accessories of Two-Wheelers) and attract a 28% GST rate.
  • Seats for Four-Wheelers: Classified under HS 9401 (Seats, whether convertible to beds, including parts) and initially attract 18% GST.
  • Prospective Rate: From 10.10.2024, car seats under HS 9401 will also attract a 28% GST, aligning with the GST rate for two-wheeler seats.

The Circular can be accessed at https://taxo.online/wp-content/uploads/2024/10/cir-cgst-235-2024.pdf

C. Circular No. 236/30/2024-GST dated 11.10.2024: Clarification regarding the scope of “as is / as is, where is basis” mentioned in the GST Circulars issued on the basis of recommendation of the GST Council in its meetings

1. Scope of Regularization on “As Is” or “As Is, Where Is” Basis:

• Context: There have been doubts in the field regarding how past GST payments should be treated when taxpayers have paid varying rates (lower or higher) on similar goods/services due to competing entries with different rates or interpretational issues.
• Recommendation: In the 54th GST Council Meeting held on 9th September 2024, it was recommended to issue a clarification on the intention behind regularization in such cases.

2. Clarification on “As Is” or “As Is, Where Is” Regularization:

• What It Means:
  • As Is Basis: The tax paid at the lower GST rate or under an exemption claimed by the taxpayer is treated as full discharge of tax liability.
  • As Is, Where Is Basis: No refunds will be given to taxpayers who paid at a higher GST rate than the clarified rate, meaning those who paid the higher rate will not be reimbursed.
• Applicability: This regularization is applicable in situations where there were genuine doubts or competing entries leading to varying GST rates being paid by different taxpayers.

3. No Regularization for Non-Payment of Tax:

• Regularization on “as is, where is” basis will not apply to situations where no GST was paid, and the applicable rate shall be recovered.

The complete Circular can be accessed at https://taxo.online/wp-content/uploads/2024/10/cir-cgst-236-2024.pdf