The significant clarifications made in circular No: 164/20/2021 GST dated 06.10.2021are:
Services provided by way of cooking and supply of food, by cloud kitchens/central kitchens are covered under "restaurant services" and attract GST rate of 5% (without ITC).
Where ice cream parlors sell already manufactured ice cream and do not prepare or cook ice cream for consumption like restaurant, it is supply of ice cream as goods and not as a service, even if the supply has certain ingredients of service. According ice-cream sold by parlor or any similar outlet would attract GST @18%.
Services provided by any institutions/NGOs under the central scheme of "Scholarships for students with Disabilities" where total expenditure is born by the government is exempt under GST under entry No. 72 of Notification No. 12/2017-CT(Rate).
As the satellite launch services supplied by New Space India Limited (NSIL), a wholly-owned Government of India company under the administrative control of Department of Space (DoS), are similar to those supplied by ANTRIX Corporation Ltd, circular no. 2/1/2017-IGST dated 27.09.2017, issued in respect of ANTRIX corporation ltd, is applicable to NSIL as well. (Circular No. 2/1/2017-IGST has clarified that place of supply (PoS) of satellite launch services supplied by ANTRIX Corporation Ltd to customers located outside India is outside India and such supply which meets the requirements of section 2(6) of IGST Act, constitutes export of service and shall be zero-rated. If the service recipient is located in India, the satellite launch services would be taxable.)
Overloading charges at toll plazas would get the same treatment as given to toll charges.
The expression giving on hire in Sl. No. 22 of the Notification No. 12/2017-CT(Rate) includes renting of vehicles. Accordingly, services where the said vehicles are rented or given on hire to State Transport Undertakings or Local Authorities are eligible for the said exemption irrespective of whether such vehicles are run on routes, timings as decided by the State Transport Undertakings or Local Authorities and under the effective control of State Transport Undertakings or Local Authorities which determines the rule of operating or plying of vehicle.
28% rate [entry 34 (iiia)] applies on admission to a place having casino or race club [even if it provides certain other activities] or admission to a sporting event like IPL. On the other hand entry 34(iii), having a rate of 18%, covers all other cases of admission to amusement park, or theme parks etc, or any other places having joy rides, merry-go rounds, go-carrying etc, whether indoor or outdoor so long as no access provided to a casino or race club. This clarification will also apply to entries 34(iii) and 34(iiia) as they existed prior to their amendment w.e.f 01-10-2021
The expression "food and other products" in Sl. No. 26[item1(i)f] of Notification No. 11/2017-CT (R) excluded alcoholic beverages for human consumption. As such, in common parlance also alcoholic liquor is not considered as food. According, services by way of job work in relation to manufacture of alcoholic liquor for human consumption are not eligible for GST @5% prescribed under the said entry. GST council recommended that such job work would attract GST @18%.
Services by way of grant of mineral exploration and mining rights most appropriately fall under the service code 997337 i.e. "licensing services for the right to use minerals including its exploration and evaluation" and the intention has always been to tax this activity / supply at standard rate of 18%.
For detailed clarifications on the above aspects, please refer Circular No. 164 /20 /2021-GST dated 6th October, 2021
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