GST council, in its meeting on 18.01.2018, provide clarifications on various matters to resolve the early age disputes. These clarifications are discussed below:-
1) Exemption limit provided in Accommodation Sector also available to Hostels:
It is clarified that exemption of Rs 1000/- per day or equivalent (declared tariff) is available in respect of accommodation service in hostels too. It means if the monthly cost per unit of accommodation in hostel is less than Rs 28000/29000/30000/31000 respectively, then such hostels are exempted from GST.
2) Fee/Penalty Paid in Consumer Dispute Commissions
It is clarified that fee paid by litigants in the Consumer Disputes Commissions and any penalty imposed by these Commissions, will not attract GST.
3) Joy rides not classified as Transportation
To clarify that elephant/ camel joy rides are not classified as transportation services and attract GST @ 18% with threshold exemption to small services providers.
4) Tax rate applicable for leasing or rental services
It is clarified that leasing or rental service, with or without operator, of goods, attracts same GST as supply of like goods involving transfer of title in the said goods. Therefore, the GST rate for the rental services of self-Propelled Access Equipment (Boom. Scissors/Telehandlers) is 28%.
5) Services provided in Healthcare Sector
It is clarified that,-
- Services provided by senior doctors/consultants/technicians hired by the hospitals, whether employees or not, are healthcare services which is exempt.
- Hospitals also provide healthcare services. The entire amount charged by them from the patients including the retention money and the fee/payments made to the doctors etc., is towards the healthcare services provided by the hospitals to the patients and is exempt.
- Food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and not separately taxable. Other supplies of food by a hospital to patients (not admitted) or their attendants or visitors is taxable.
6) Entertainment Services
It is clarified that following services are taxable at 28%:-
1. admission to entertainment events or access to amusement facilities including casinos, race-course
2. ancillary services provided by casinos and race-course in relation to such admission.
3. services given by race-course by way of totalisator (if given through some other person or charged separately as fees for using totalisator for purpose of betting,
Further, Services given by race-course by way of license to bookmaker which is not a service by way of betting and gambling, is taxable at 18%.
To regularize above decisions, government has issued a circular on 12.02.2018. Refer CIR-32/06/2018-GST dated 12.02.2018
Click on following link for Complete set of Decisions taken by GST Council on 18.01.2018 :
https://www.ca-sunilkumar.com/gstdownloads/#1507441418199-2018e5c1-6dcf
