Amendments made on tax rates on services and goods, exempted services, applicability of Reverse Charge Mechanism on certain goods through various notifications dated 30th September, 2021 are listed in this article.
Following changes have been made in exemption notification for services viz.
Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017 vide Notification No. 7/2021- Central Tax (Rate) dated 30th September, 2021:
Exemption granted to services by way of transportation of goods by an aircraft/vessel from customs station of clearance in India to a place outside India has been extended to 30th September, 2022.
Exemption granted to services of leasing of assets (rolling stock assets including wagons, coaches, locos) by the Indian Railway Finance Corporation to Indian Railway has been withdrawn.
Exemption has been granted to service by way of granting National Permit to a goods carriage to operate through-out India / contiguous States
Exemption available to services provided to the Central Government, State Government, Union territory administration under any training programme for which total expenditure is borne by the Central/State Government or State Government, Inion territory administration would now be available if 75% or more of the expenditure is borne by the Central/State Government UT administration.
Consequent to the insertion of section 12AB in the Income-Tax Act, 1961 vide the Financial Act, 2020, exemptions available to entities registered under section 12AA of the Income Tax Act, 1961 have been extended to entities registered under section 12AB as well.
Exemption granted to services related to FIFA Women's World Cup, 2020 to be hosted in India shall continue to be exempted "whenever rescheduled".
Exemption has been granted to services by way of right to admission to the events organized under AFC Women Asia Cup,2022 subject to fulfillment of specified condition.
2. Amendments have also been made in rate notification for goods to give effect to the
decisions taken by the GST Council at its 45th Meeting held on 17.09.2021. for example, CGST rate on specified renewable energy devices and parts has been increased from 2.5% to 6%, CGST rate on waste and scrap of polyurethanes and other plastics has been increased from 2.5% to 9%, CGST rate on fortified rice kernels for schemes like ICDS etc. and medicine keytruda for treatment of cancer has been reduced from 9% to 2.5% and 6% to 2.5% respectively. Further, carbonated beverages of fruit drink or carbonated beverages with fruit juice shall now be changed to CGST at the rate of 14%. Equal rates of SGST would also be applicable in all these cases.
It has been clarified that exemption available to seeds, fruit and sports, of a kind used for sowing will not cover seeds meant for any use other than sowing, Further, exemption on certain specified COVID-19 medicines has been extended to 31st December, 2021.
3. The reverse charge notification for goods viz., Notification No. 4/2017-Cental Tax
(Rate) dated 28th June, 2017 has been amended vide Notification No. 10/2021-Central tax (Rate) dated 30th September, 2021 to provide that tax on the following goods shall be payable by the registered recipient of such goods under reverse charge when procured from an unregistered supplier :
Essential oils OTHER THAN those of citrus fruit namely :-
Of peppermint (Menthapiperita);
Of other mints: Spearmint oil (exmenthaspicata), Water mint-oil (exmenthaequatic), Horsemint oil (exmenthasylevstries), Bergament oil (ex-mentha citrate)
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