The CBIC has issued various circulars dated 01st August, 2023, clarifying on the issues discussed by the GST Council in its 50^th GST Council meeting held on 11^th July. These clarifications are in regarding applicability of GST on certain goods and services. 

 

A. Clarification regarding GST rates and classification of certain goods:

The Circular No. 200/12/2023-GST has been issued to clarify the following:

1. Supply of un-cooked/un-fried extruded snack pellets falling under CTH 1905 will attract GST rate of 5% w.e.f. 27.07.2023. Extruded snack pellets in ready-to-eat form will continue to attract 18% GST. 
2. To regularise the matters relating to Desiccated Coconut for the past period from 01.07.2017 till 27.07.2023 on ‘as is basis'.
3. To regularise the matters relating to Biomass briquettes for the past period from 01.07.2017 till 12.10.2023 on ‘as is basis'.
4. Supply of raw cotton, including kala cotton, by agriculturists to cooperatives is taxable under reverse charge mechanism. Issues related to past periods to be regularized on ‘as is basis'.
5. Goods on which GST rate has been changed w.e.f. 27.07.2023, the issues related to past periods upto 27.07.2023 to be regularize on ‘as is basis'.

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/08/Circular-No-12-2023.pdf

B. Clarifications regarding applicability of GST on certain services: 

The Circular No. 201/13/2023-GST has been issued to clarify the following:

1. Services supplied by director of a company in his personal capacity such as renting of immovable property to the company or body corporate:  It is clarified that only those services supplied by director of company or body corporate, which are supplied by him as or in the capacity of director of that company or body corporate shall be taxable under RCM in the hands of the company or body corporate under notification No. 13/2017-CTR (Sl. No. 6) dated 28.06.2017. 
2. Taxability of supply of food or beverages in cinema hall:  It is clarified that supply of food or beverages in a cinema hall is taxable as ‘restaurant service as long as:
   a) the food or beverages are supplied by way of or as part of a service and
   b) supplied independent of the cinema exhibition service.

   Also, it is clarified that where the sale of cinema ticket and supply of food and beverages are clubbed together, and such bundled supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to service of exhibition of cinema, the principal supply. 

The Circular can be accessed at https://taxo.online/wp-content/uploads/2023/08/Circular-No-13-2023.pdf