MM TAX CLUB

Notice calling for feedback/ suggestions from stakeholders on Harmonization of GST Rate Schedule on Services and the Classification of Services adopted for GST

As per Notification No. 12/2017-Central Tax dated 28.06.2017, as amended by Notification No. 78/2020-Central Tax dated 15.10.2020, taxpayers having turnover up to Rs.5 Crore in the previous financial year are required to declare classification of services at a 4-digit level and those having turnover above Rs. 5 Crore at a 6-digit level.

2. Under GST, the Scheme of Classification of services adopted is based on UNCPC (UN Central Product Classification of Goods and Services). However, while the UNCPC adopts a 5 digit classification, the classification adopted for GST is a 4-digit classification with digits 99 pre-fixed to indicate that these are services. This scheme of classification has been annexed to the Rate Notification No. 11/2017-CT(R) dated 28.06.2017.

3 In the said Notification, the GST rate schedule specifying the applicable GST rates for different services does not mention the classification of services at the six digit level.

Therefore, an attempt has been made to harmonize the GST Rate Schedule with the Classification of Services with a view to promote ease of doing business. The document annexed with this note (pages 1 to 74) is a self-contained draft schedule of GST rates on services, in which the service code (6-digit), the description of the service and the applicable rate, along with the condition applicable, are given together. Also, the numerous conditions specified in the existing rate notification have been standardized, coded and moved to a separate table which has made the main body of the notification easier to read.

4. All are requested to kindly provide feedback/ suggestions on the annexed draft schedule of GST rates on services latest by 31st January 2024. The same may be mailed at the email id js-tru2@gov.in

The Government of India (GoI) has announced the sale (re-issue) of (i) “7.37% Government Security 2028” for a notified amount of ₹7,000 crore (nominal) through price based auction using uniform price method, (ii) “7.18% Government Security 2033” for a notified amount of ₹16,000 crore (nominal) through price based auction using uniform price method and (iii) “7.30% Government Security 2053” for a notified amount of ₹10,000 crore (nominal) through price based auction using multiple price method. GoI will have the option to retain additional subscription up to ₹ 2,000 crore against each security mentioned above. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on January 12, 2024 (Friday).

Up to 5% of the notified amount of the sale of the securities will be allotted to eligible individuals and institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 12, 2024. The non-competitive bids should be submitted between 10:30 a.m. and 11:00 a.m. and the competitive bids should be submitted between 10:30 a.m. and 11:30 a.m.

The result of the auctions will be announced on January 12, 2024 (Friday) and payment by successful bidders will be on January 15, 2024 (Monday).   

The Securities will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2018-19/25 dated July 24, 2018 as amended from time to time.

Notification No.10/2024 dated 8^th January, 2024

Notification under section 10(46) of the Act in case of Chennai Metropolitan Water Supply and Sewerage Board

In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Chennai Metropolitan Water Supply and Sewerage Board’ (PAN: AAALM0037B), a Board constituted by the Government of Tamil Nadu, in respect of the following specified income arising to that Board, namely:

(a) Grant and subsidies received from Government;

(b) Centage receipts received from Municipalities, Local authority and Government;

(c) Receipts of taxes, charges, fees, fines, forfeitures, penalties, etc. by whatever name called;

(d) Income from sale of farm produce, rent from properties;

(e) Other miscellaneous income such as interest on deposits with TNEB, GPF/CPS investments, staff welfare investments, Debt Reserve Fund, Fixed Asset renewal fund, advance to staff and contractors, sale of assets/scrap; and

(f) Interest earned on bank deposits.

2. This notification shall be effective subject to the conditions that Chennai Metropolitan Water Supply and Sewerage Board:-

(a) shall not engage in any commercial activity;

(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and

(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

3. This notification shall be deemed to have been applied for assessment years 2020-2021, 2021-2022, 2022-2023 and 2023-2024 relevant for the financial years 2019-2020, 2020-2021, 2021-2022 and 2022-23

Notification No.11/2024 dated 8^th January, 2024

Notification under section 10(46) of the Act in case of Punjab State Faculty of Ayurvedic and Unani Systems of Medicine

In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Punjab State Faculty of Ayurvedic and Unani Systems of Medicine’ (PAN: AAALT1669E), a body constituted by the Punjab Government, in respect of the following specified income arising to that body, namely:-

(a) Fees, by whatever name called;

(b) Maintenance Fund receipts; and

(c) Interest earned on bank deposits.

2. This notification shall be effective subject to the conditions that Punjab State Faculty of Ayurvedic and Unani Systems of Medicine, SAS Nagar, Punjab:-

(a) shall not engage in any commercial activity;

(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and

(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

3. This notification shall be deemed to have been applied for assessment years 2020-2021, 2021-2022, 2022-2023 and 2023-2024 relevant to the financial years 2019-2020, 2020-2021, 2021-2022 and 2022-2023 respectively.