Applicability of Goods and Service tax (GST) on Static Catering Services on IR

Applicability of Goods and Service tax (GST) on Static Catering Services on IR

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No. 2012/TG.III/631/2

New Delhi Dated 01.12.2017

The General Managers
All Indian Railways

The CMD/IRCTC
New Delhi

CMD/KRCL,
Navi Mumbai

(Commercial Circular No. 79 of 2017)

Sub: Applicability of Goods and Service tax (GST) on Static Catering Services on IR.

Ref: (i) Commercial Circular No. 78 of 2012 dated 21.12.2012
(ii) Commercial Circular No. 44 of 2017 dated 29.06.2017
(iii) Commercial Circular No. 48 of 2017 dated 30.06.2017
(iv) Board's letter No. 2016/AC-II/01/Misc./GST (RBS No. 164/20117) dtd 20.11.2017
(v) Board's letter no. 2017/TG-III/631/6 dated 18/09/2017.

Ministry of Finance (Department of Revenue) vide notification No. 11/2017 - Central Tax(Rate) dated 28.06.2017 had issued GST Rate for supply of food and beverage services. Further, vide Notification no. 46/2017-Centrl Tax (Rate) dated 14.11.2017, the aforesaid notification has been amended. The issue of implementation of Goods and Service Tax (GST) on Catering Services on Indian Railway has been examined in consultaion of Finance Commercial Dte. of Railway Board and accordingly, following are advised:-

1. The chargeable GST on catering services in state in catering units / parliament canteen is @ 5% with no Input Tax Credit (ITC).

2. The above GST on catering charges through Static units is applicable w.e.f. 15.11.2017.

3. The rates notified vide Commercial Circular No. 78 of 2012 will remain unchanged after applicability of GST but are now inclusive of GST @ 5% for static catering units.

This issues with the concurrence of Finance Dte. of Railway Board.

Please acknowledge receipt of this letter.

sd/-
(Smita Rawat)
Executive Director (T&C)
Railway Board

Authority: www.indianrailways.gov.in

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Government to replace GST ordinance with bill

Government to replace GST ordinance with bill

The Cabinet today approved replacing the Goods and Service Tax (Compensation to States) Ordinance by a bill, sources said.

The GST (Compensation to States) Act 2017 aims to provide for compensation to the states for the loss of revenue arising on account of implementation of Goods and Service Tax Act, they said.

It provides for imposition of compensation cess on intra-state/ inter-state supplies of goods and services.

The GST Council in its 20th meeting held in August had recommended an increase of 10 per cent to 25 per cent in the maximum rate on certain type of motor vehicles.

The Ordinance was promulgated on September 2, thus raising the maximum rates.

Article 123 of the Constitution mandates that the ordinance be approved by the Parliament within six weeks of reconvening.

Accordingly, the sources added the finance ministry had sought Cabinet nod for the replacement of the ordinance by the Goods and Service Tax (Compensation to States) Bill, 2017.

The government has listed the bill for introduction in its Parliament business agenda for the next week.

PTI

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Implementation of GST in Defence Sector

Implementation of GST in Defence Sector

Controller General of Defence Accounts
Ulan Batar Road, Palam
Delhi Canteen

No. GST Cell/9504/GST/Query

16th August 2017

To,
Commodore Sanjay Vatsayan
PDNP, IHQ MoD (Navy)
New Delhi

Sub: Implementation of GST in Defence Sector

This has reference to letter No.PL/3109/FP5 dated 9th Aug 2017 regarding clarification on GST registration number.

2. In this regard, it is intimated that Section 51 & 52 of GST Act, 2017 (uploaded on CGDA website) has been kept in abeyance by the Ministry of Finance, GoI. Hence, DDOs registration number i.e, GSTIN of PCsDA/CsDA is not required for processing of third party bills, as an interim arrangement, till Section 51 & 52 of GST Act is notified.

3. This issues with the approval of Addl. CGDA (US).

ACGDA (GST)

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GST Council Recommends Increase in Maximum Ceiling of Cess Leviable on Motor Vehicles Falling Under Headings 8702 and 8703 to 25% Instead of Present 15%

GST Council Recommends Increase in Maximum Ceiling of Cess Leviable on Motor Vehicles Falling Under Headings 8702 and 8703 to 25% Instead of Present 15%

The GST Council considered the issue of cess leviable on motor vehicles in its 20th meeting held on the 5th of August 2017 and recommended that Central Government may move legislative amendments required for increase the maximum ceiling of cess leviable on motor vehicles falling under headings 8702 and 8703 including SUVs, to 25% instead of present 15% . However, the decision on when to raise the actual cess leviable on the same will be taken by the GST Council in due course.

It was noted that after introduction of GST, the total tax incidence on motor vehicles [GST + Compensation Cess] has come down vis-a-vis the total tax incidence in pre-GST regime. The Schedule to the Goods and Service Tax (GST) (Compensation to State) Act 2017, specifies the maximum rate at which Goods and Service Tax Compensation Cess may be collected. In respect of motor vehicles, the maximum rate at which Goods and Service Tax Compensation Cess may be collected is 15%.

PIB

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Government clarifies that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18% ; Star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST.

Government clarifies that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18% ; Star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST. 

Reports have been received expressing doubts whether 5-star Hotels are liable to pay GST @ 28% irrespective of the declared tariff of a unit of accommodation.

In this context, it is hereby clarified that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18%. Star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST.

PIB

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The Union Finance Minister to chair the 17th Meeting of the GST Council on Sunday, 18th June, 2017

The Union Finance Minister to chair the 17th Meeting of the GST Council on Sunday, 18th June, 2017

The Union Minister for Finance, Defence and Corporate Affairs, Shri Arun Jaitley will chair the 17th Meeting of the GST Council scheduled to be held on Sunday, 18th June, 2017 at Vigyan Bhavan in the national capital. The one day Meeting will also be attended among others by the Finance Ministers of different States and UTs (having elected assembly) being the members of the GST Council.

Main agenda items of the 17th GST Council Meeting include confirmation of the minutes of the 16th GST Council meeting held on 11th June, 2017, approval of draft GST Rules and related Forms for (i) Advance Ruling, (ii) Appeals and Revision, (iii) Assessment and Audit, (iv) E-Way Bill & (v) Anti-Profiteering, and Fitment/adjustment of GST Rates on certain items among others.

PIB

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PM reviews progress towards beginning of GST on July 1

PM reviews progress towards beginning of GST on July 1

The Prime Minister, Shri Narendra Modi, today reviewed the status of GST, which is to be implemented from July 1.

The meeting, which lasted for over two and a half hours, was attended by Finance Minister Arun Jaitley, and top-most officials from the Ministry of Finance, PMO and the Cabinet Secretary.

In the course of the meeting, the Prime Minister specifically reviewed aspects of implementation such as IT readiness, HR readiness, training and sensitization of officers, query handling mechanism, and monitoring. The Prime Minister was informed that GST systems such as IT infrastructure, training of officials, integration with banks, and enrolment of existing taxpayers will be in readiness well in time for the July 1 implementation date. Information security systems were discussed in detail.

A Twitter handle - @askGst_GOI has been started for real time answering of queries. An All India toll-free phone 1800-1200-232 has also been activated for this purpose.

The Prime Minister asserted that the implementation of GST from July 1st, is the culmination of the concerted efforts of all stakeholders, including political parties, trade and industry bodies. He described GST as a turning point for the economy, unprecedented in history. He directed officials that the creation of One Nation; One Market; One Tax would greatly benefit the common man. The Prime Minister also directed that maximum attention be paid to cyber-security in IT systems concerned with GST.

PIB

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15th Meeting of the GST Council to be held tomorrow, 3rd June, 2017

15th Meeting of the GST Council to be held tomorrow, 3rd June, 2017

Approval of amendments to the draft GST Rules and related forms and Finalisation of the rates of tax and cess on the remaining commodities are on the Agenda among others for tomorrow's meeting.

The Union Minister for Finance, Defence and Corporate Affairs, Shri Arun Jaitley will chair the 15th Meeting of the GST Council scheduled to be held tomorrow, i.e., Saturday, 3rd June, 2017 at Vigyan Bhavan in the national capital. This meeting is important because it is likely to finalize the rates of tax and cess to be levied on the commodities remaining after the fitment exercise in the 14th GST Council Meeting. Besides it, approval of amendments to the draft GST Rules and related Forms are also on the agenda among others of the aforesaid one day meeting. The meeting is likely to be attended by the Finance Ministers of different States/UTs being the member of the GST Council along with the senior officers.

PIB

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Government to strengthen agency under GST to check tax evasion

Government to strengthen agency under GST to check tax evasion
New Delhi: Ahead of the planned GST rollout from July 1, the government is strengthening the body responsible for detecting tax evasion and will set up two new agencies, including one for business intelligence and analytics.

With the goods and service tax (GST) subsuming central levies like excise duty, service tax and state VAT, the Central Board of Excise and Customs (CBEC) has reorganised its existing central excise and service tax field formations to suit the requirements of the new regime.

The CBEC will itself be rechristened as the Central Board of Indirect Taxes and Customs (CBIC) and will supervise GST and Customs activities and provide the government policy inputs.

The CBIC will be headed by a chairman and will have six members - for GST; IT, legal and compliance verification; investigation; tax policy; Customs and administration and vigilance.

In a letter to the zonal heads, the human resource arm of the CBEC said the Directorate General of GST Intelligence (DGGSTI) will be the new name of the existing Directorate General of Central Excise Intelligence (DGCEI), but with more powers.

The DGSTI will have its task cut out, keeping in view the steep increase in the GST taxpayer base, the letter said.
The organisation will be headed by a principal director general in Delhi who will be assisted by four sub-national directors general.

Also, two new directorates are being created. The Directorate General of Analytics and Risk Management (DGARM) will have two verticals for business intelligence and analytics and risk management centre to provide perspectives for policy formulation.

The Directorate of International Customs will be created to deal with WTO related matters, including tariff, as well as the Kyoto Convention, multilateral and bi-lateral agreements with other countries.

"It will also assist the board in functions related to the National Trade Facilitation Committee for implementation of the trade facilitation agreement (TEA) and Customs procedures for international Trade. All matters of cross- border trade through Land Customs Stations shall also be handled by this directorate," the letter said.

Further, the National Academy of Customs, Indirect Taxes and Narcotics (NACIN), will be the new form of the existing National Academy of Customs, Excise and Narcotics (NACEN). In the GST regime, it will be the only academy of its kind in India that will provide regular training to officers.

It is also envisaged that the NACIN will provide training to representatives of trade bodies and tax professionals. Thus, it will be catering to the training needs of around 70,000 persons every year.

The role of the Directorate General of Taxpayer Services under the GST set-up will be to provide assistance to the taxpayers at their doorsteps, in addition to handling publicity and public relations, holding seminars and workshops, attending to queries of taxpayers and coordinating the resolution of taxpayers' grievances.

PTI

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FM: Government is working on a target date of 1st April, 2017 for the roll out of the Goods and Service Tax (GST) in the country

FM: Government is working on a target date of 1st April, 2017 for the roll out of the Goods and Service Tax (GST) in the country.

The Union Finance Minister Shri Arun Jaitley said that the Government is working on a target date of 1st April, 2017 for the roll out of the Goods and Services Tax (GST) in the country. He said that till 16th September, 2017, that is one year after the provisions of the Constitution (101st Amendment) Act, 2016 being brought into force, the Constitution empowers the Central Government to levy excise duty on manufacturing; and service tax on the supply of services. The Finance Minister said that similarly the Constitution Amendment Act empowers the State Governments to levy sales tax or Value Added Tax (VAT) on the sale of goods till that time i.e. 16th September, 2016. The Finance Minister Shri Jaitley said that so far the Government is following the road map for implementation of GST as per the schedule. The Finance Minister Shri Jaitley was making his Opening Remarks at the Fourth Meeting of the Parliamentary Consultative Committee attached to the Ministry of Finance held here today. The subject of today's Meeting was the Goods and Services Tax (GST)

The Finance Minister Shri Jaitley further said that the First Meeting of the GST Council was held in a very cordial and constructive environment earlier this month and today, he will hold the Second Meeting of the GST Council. In the GST regime, the GST Council has been created under Article 279A of the Constitution. The GST Council is a joint forum of the Centre and the States. The Council will take decisions on important issues like tax rates, exemption list and threshold limits etc.

Thereafter, the Members of Consultative Committee who participated in today's Meeting sought various clarifications with regard to GST Law and gave suggestions for its better implementation. Some of the major suggestions include need for absolute clarity and transparency with regard to where taxes will be collected, assessed and where the appeal will be filed in case of GST regime. The members said that it will be challenging task to tackle complex situation arising-out of implementation of GST law in a federal system. Some of the members suggested there is a need for launching a large scale Awareness Campaign especially for the small traders as most of them are still unaware about the complex procedures and processes under GST regime including for registration and filing of returns etc. Some of the members suggested that availability of IT network in all parts of the country, especially in small towns and rural areas, must be ensured as GST system will work only online. Some of the members appreciated the initiative of the Government in getting the GST law passed by both the Houses of Parliament as well as its commitment to implement it in a time bound manner. The members hoped that this law will bring relief to the common man by exempting certain essential items from GST and moderate rate of taxation on other items which in turn will bring down the prices of common man consumption items as well as cost of living at large.

Along with the Union Finance Minister, Shri Arun Jaitley, Shri Santosh Kumar Gangwar, Minister of State for Finance, the Members of the Consultative Committee who participated in the today's Meeting include Shri Baijayanta Jai Panda, Shri Dilip Kumar Mansukhlal Gandhi, Shri Kailkesh Narayan Singh Deo, Shri Prabhatsinh Chauhan, Shri Ram Charitra Nishad, Shri Subhash Chandra Baheria and Shri Suresh Chanabassappa Angadi (all members of Lok Sabha); Shri Anil Desai, Shri Digvijaya Singh, Shri Rajkumar Doot and Shri Satish Chandra Misra (all members of Rajya Sabha) .

Among the officers who attended the Consultative Committee Meeting include Shri Ashok Lavasa, Finance Secretary, Shri Shaktikanta Das, Secretary, DEA, Dr. Hasmukh Adhia, Revenue Secretary, Ms. Anjuly Chib Dugal, Secretary, Financial Services, Shri Neeraj Kumar Gupta, Secretary, DIPAM, Dr. Arvind Subramanian, Chief Economic Adviser (CEA), Chairman, CBEC Shri Najib Shah and other senior officers of the Ministry of Finance.

PIB

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