Notification No. 02/2018 Integrated Tax (Rate) DT on 25th January, 2018, GST

 

Seeks to amend notification No. 9/2017- Integrated Tax (Rate) so as to exempt certain services as recommended by Goods and Services Tax Council in its 25th meeting held on 18.01.2018.

 

The Extract of GST Notification No. 02/2018 – Integrated Tax (Rate) is given below:

 

             Notification No. 02/2018 – Integrated Tax (Rate), GST

 

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II,

 

SECTION 3, SUB-SECTION (i)]

 

Government of India

 

Ministry of Finance

 

(Department of Revenue)

 

Notification No. 2/2018- Integrated Tax (Rate)

 

New Delhi, the 25^th January, 2018

 

G.S.R......(E).- In exercise of the powers conferred by sub-section (1) of section 6 of the

 

Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.9/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 684 (E), dated the 28th June, 2017, namely:-

 

In the said notification, in the Table, -

 

(a)   against serial number 3, in the entry in column (3), after the words “a Governmental

 

Authority” the words “ or a Government Entity”  shall be inserted;

 

(b)   after serial number 3 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

 

(1)	(2)	(3)	(4)	(5)
“3A	Chapter	Composite supply of goods and services in which	Nil	Nil”;
	99	the value of supply of goods constitutes not more
		than 25 per cent of the value of the said composite
		supply provided to the Central Government, State
		Government or Union territory or local authority
		or  a  Governmental  authority  or  a  Government
		Entity by way of any activity in relation to any
		function  entrusted  to  a  Panchayat  under  article
		243G  of  the  Constitution  or  in  relation  to  any
		function entrusted to a Municipality under article
		243W of the Constitution.

 

(c)   against serial number 10, in the entry in column (3), after item (b), the following item shall be inserted, namely: -

 

“(ba) way of supply of online educational journals or periodicals to an educational institution other than an institution providing services by way of-

 

(i)      pre-school education and education up to higher secondary school or equivalent; or

 

(ii)  education as a part of an approved vocational education course;”;

 

(d)   against serial number 17, in the entry in column (3), for the words “one year”, the words

 

“three years” shall be substituted;

 

(e)   after serial number 20 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

 

(1)	(2)	(3)	(4)	(5)
“20A	Heading	Services by way of transportation	Nil	Nothing contained in this
	9965	of  goods  by  an  aircraft  from		serial number shall apply
		customs  station  of  clearance  in		after the 30th day of
		India to a place outside India.		September 2018.
20B	Heading	Services by way of transportation	Nil	Nothing contained in this
	9965	of goods by a vessel from customs		serial number shall apply
		station of clearance in India to a		after 30th day of
		place outside India.		September 2018.”;

 

(f)    against serial number 23, in the entry in column (3), after item (b), the following item shall be inserted, namely: -

 

“(c) motor vehicle for transport of students, faculty and staff, to a person providing services of transportation of students, faculty and staff to an educational institution providing services by way of pre-school education and education upto higher secondary school or equivalent.”

 

(g)   after serial number 30 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

(1)	(2)		(3)	(4)	(5)
“30A	Heading		Services of life insurance provided or agreed to be	Nil	Nil”;
	9971	or	provided by the Naval Group Insurance Fund to
	Heading		the  personnel  of  Coast  Guard  under  the  Group
	9991		Insurance Schemes of the Central Government.

 

(h)   against serial number 37, in the entry in column (3), in item (c), for the words “fifty thousand”, the words “two lakhs” shall be substituted;

 

(i)     after serial number 37 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

 

(1)	(2)		(3)	(4)	(5)
“37A	Heading		Services by way of reinsurance of the insurance	Nil	Nil”;
	9971	or	schemes specified in serial numbers 36 or 37.
	Heading
	9991
			2

(j)     after serial number 40 and the entries relating thereto, the following serial number and entries shall be inserted namely: -

 

(1)	(2)	(3)	(4)	(5)
“40A	Heading	Services by an intermediary of financial services	Nil	Nil”;
	9971	located in a multi services SEZ with International
		Financial  Services  Centre  (IFSC)  status  to  a
		customer  located  outside  India  for  international
		financial services in currencies other than Indian
		rupees (INR).

 

Explanation.- For the purposes of this entry, the intermediary of financial services in IFSC is a person,-

 

(i)   who is permitted or recognised as such by the Government of India or any Regulator appointed for regulation of IFSC; or

 

(ii)    who is treated as a person resident outside India under regulation 3 of the Foreign Exchange Management (International Financial Services Centre) Regulations, 2015; or

 

(iii)       who is registered under the Insurance Regulatory and Development Authority of India

 

(International Financial Service Centre) Guidelines, 2015 as IFSC Insurance Office; or

 

(iv)    who is permitted as such by Securities and Exchange Board of India (SEBI) under the Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015.

  

(k)   against serial number 47, in the entry in column (3),-

 

(i)      in item (a), after sub-item (ii), the following sub-item shall be inserted, namely:-

 

“(iii) the Central Government, State Government, Union territory, local authority,

 

Governmental Authority or Government Entity;”;

 

(ii)      in item (b), after sub-item (iii), the following sub-item shall be inserted, namely:-“(iv) the Central Government, State Government, Union territory, local authority, Governmental Authority or Government Entity;”;

 

(iii)      in item (c), after sub-item (ii), the following sub-item shall be inserted, namely:-

 

“(iii) the Central Government, State Government, Union territory, local authority, Governmental Authority or Government Entity.”;

 

(l)     after serial number 56 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

 

(1)	(2)	(3)	(4)	(5)
“56A	Heading	Services  by  way  of  fumigation  in  a  warehouse  of	Nil	Nil”;
	9985	agricultural produce.

 

(m) against serial number 57, in the entry in column (3), after item (g), the following item shall be inserted, namely:-

 

“(h) services by way of fumigation in a warehouse of agricultural produce;”;

 

(n)   against serial number 63, in the entry in column (3), the words “the Ministry of External Affairs,” shall be omitted;

 

(o)   after serial number 68 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

 

(1)	(2)	(3)	(4)	(5)
“68A	Heading	Services by way of providing information under the	Nil	Nil”;
	9991	Right to Information Act, 2005 (22 of 2005).

 

(p)   against serial number 69, in the entry in column (3),-

 

(i)      after item (a), the following item shall be inserted, namely:-

 

“(aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee;”;

 

(ii)      in item (b),-

 

(A) in sub-item (iv), the words “upto higher secondary” shall be omitted;

 

(B)  after sub-item (iv), the following sub-item shall be inserted, namely:-

 

“(v) supply of online educational journals or periodicals;”;

 

(C)  in the proviso, for the words brackets and letter “entry (b)”, the words, brackets and letters “sub-items (i), (ii) and (iii) of item (b)” shall be substituted;

 

(D) after the proviso, the following proviso shall be inserted, namely:-

 

“Provided further that nothing contained in sub-item (v) of item (b) shall apply to an institution providing services by way of,-

 

(i)   pre-school education and education up to higher secondary school or equivalent; or

 

(ii)  education as a part of an approved vocational education course.”;