Circular No. 206/17/2023-GST dated 31 October 2023

Key Pointers –

• It has been clarified that input services in the same line of business include transport of passengers transport service and renting of motor vehicles includes leasing of motor vehicles without operators will attracts GST at the same rate as supply of motor vehicles by way of sale.
• When the electricity is being supplied bundled with renting of immovable property and/or maintenance of premises, even if electricity is billed separately,it forms a part of composite supply and shall be taxed accordingly. However, where the electricity is supplied by the Real Estate Owners, Resident Welfare Associations (RWAs), Real Estate Developers etc., as a pure agent, where they charge for electricity on actual basis, it will not form part of value of their supply.
• Explained that job work services for converting barley into malt, regardless of its end-use, fall under 5% GST bracket, considering it as job work related to food products.
• Further, affirmed that District Mineral Foundations Trusts (DMFTs) established by State Governments are eligible for GST exemptions, akin to other Governmental Authorities, due to their focus on welfare-related activities.
• It was confirmed that supplies of pure services and composite supplies related to horticulture works, where the goods' value is not more than 25% of the total supply, provided to CPWD, are eligible for GST exemption as per specific notifications (12/2017-CTR).