Q. 184 Can i get official Notification of changes in tax rate of chit fund from 12% to 18% with effect from 18th July 2022 ?

Ans. The changes have been made through Notification No. 03/2022- Central Tax (Rate), dated 13-7-2022, w.e.f. 18-7-2022 from the SAC list.

Q. 183 Work contract detailed applicable GST Rates after new notification, please clarify ?

Ans. With effect from 18.07.2022, the following rates have been changed in case of works contract for :-

•   roads, bridges, railways, prescribed civil structures, effluent treatment plant, crematorium, building owned by an entity registered under section 12AA etc (Sl no 3(iv)) is changed from 12% to 18%.
•   roads of original works of railways, low-cost housing, post-harvest storage infrastructure for agriculture, mechanized food grain handling system etc. (Sl no 3(v)) is changed from 12% to 18%
• affordable residential apartments Sl no 3(va)) is changed from 12% to 18%
• supplied to central and state governments, local authorities for historical monuments, canals, dams, irrigation works, pipeline, plants for water supply, educational institutions, hospitals, etc. & sub- contractors thereof (Sl no 3(iii), (vi) and (ix) is changed from 12 % to 18%.

Q. 182 Query is about the current Chit fund GST rate?

Ans. “Services provided by a foreman of a chit fund in relation to chit” have been omitted from the service rate notification now the above services would be taxable under “Financial and related services other than” to be taxable at the rate of 18%( with ITC). This has been made effective from 18.07.2022.