Notification No. 15/2018-Integrated Tax (Rate) ,dt. 26-07-2018-Seeks to amend notification No. 9/2017- Integrated Tax (Rate) so as to exempt certain services as recommended by Goods and Services Tax Council in its 28th meeting held on 21.07.2018.

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India

Ministry of Finance

(Department of Revenue)

Notification No. 15/2018- Integrated Tax (Rate)

New Delhi, the 26th July, 2018

G.S.R……(E).- In exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.9/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 684 (E), dated the 28th June, 2017, namely:-

In the said notification, – the words “Central Government, State Government, Union territory, local authority or” shall be omitted; (b) against serial number 5, the words “Central Government, State Government, Union territory, local authority or” shall be omitted; (c) after serial number 10D and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: –

“10E Chapter 99 Services by an old age home run by Central Government, State Government or by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) to its residents (aged 60 years or more) against consideration upto twenty-five thousand rupees per month per member provided that the consideration charged is inclusive of charges for boarding, lodging and maintenance.

10F Chapter 99 Services supplied by an establishment of a person in India to any establishment of Nil Provided the place of supply of the service is outside India 2 that person outside India, which are treated as establishments of distinct persons in accordance with Explanation 1 in section 8 of the Integrated Goods and Services Tax Act, 2017.
in accordance with section 13 of Integrated Goods and Services Tax Act, 2017.
10G Chapter 99 Import of services by United Nations or a specified international organisation for official use of the United Nations or the specified international organisation.

Explanation. – For the purposes of this entry, unless the context otherwise requires, “specified international organisation” means an international organisation declared by the Central Government in pursuance of section 3 of the United Nations (Privileges and Immunities Act) 1947 (46 of 1947), to which the provisions of the Schedule to the said Act apply.

10H Chapter 99 Import of services by Foreign diplomatic mission or consular post in India, or diplomatic agents or career consular officers posted therein.

Nil Foreign diplomatic mission or consular post in India, or diplomatic agents or career consular officers posted therein shall be entitled to exemption from integrated tax leviable on the import of services subject to the conditions, – (i) that the foreign diplomatic mission or consular post in India, or diplomatic agents or career consular officers posted therein, are entitled to exemption from integrated tax, as stipulated in the certificate issued by the Protocol Division of the Ministry of External Affairs, based on the principle of reciprocity; (ii) that the services imported are for official purpose of the 3 said foreign diplomatic mission or consular post; or for personal use of the said diplomatic agent or career consular officer or members of his or her family. (iii) that in case the Protocol Division of the Ministry of External Affairs, after having issued a certificate to any foreign diplomatic mission or consular post in India, decides to withdraw the same subsequently, it shall communicate the withdrawal of such certificate to the foreign diplomatic mission or consular post; (iv) that the exemption from the whole of the integrated tax granted to the foreign diplomatic mission or consular post in India for official purpose or for the personal use or use of their family members shall not be available from the date of withdrawal of such certificate.”; (d) after serial number 11 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –

11A Heading 9954 Services supplied by electricity distribution utilities by way of construction, erection, commissioning, or installation of infrastructure for extending electricity distribution network upto the tube well of the farmer or agriculturalist for agricultural use. Nil 4 (e)  for the words “declared tariff”, the words “value of supply” shall be substituted; (f) for the figures “2018”, the figures “2019” shall be substituted; (g) , for the figures “2018”, the figures “2019” shall be substituted; (h) the entries relating thereto, the following serial number and entries shall be inserted, namely: –

“25A Heading 9967 or Heading 9985 Services by way of warehousing of minor forest produce.

Nil”; (i) after the entries relating thereto, the following serial number and entries shall be inserted, namely: –

“32A Heading 9971 or Heading 9991

Services by Coal Mines Provident Fund Organisation to persons governed by the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948).

Nil 32B Heading 9971 or Heading 9991

Services by National Pension System (NPS) Trust to its members against consideration in the form of administrative fee.

Nil”; (j) after the entries relating thereto, the following serial number and entries shall be inserted, namely: –

“35A Heading 9971

Services supplied by Central Government, State Government, Union territory to their undertakings or Public Sector Undertakings (PSUs) by way of guaranteeing the loans taken by such undertakings or PSUs from the financial institutions.

Nil”; (k) against serial number 37A, after the figures “37”, the word and figures “or 41” shall be inserted;

(l) after  the entries relating thereto, the following entries shall be inserted, namely: –

49A Heading 9983 or Heading 9991

Services by way of licensing, registration and analysis or testing of food samples supplied by the Food Safety and Standards Authority of India (FSSAI) to Food Business Operators.

Nil”; (m) after the entries relating thereto, the following  entries shall be inserted, namely: –

58A Heading 9986

Services by way of artificial insemination of livestock (other than horses).

Nil”; (n) after  the entries relating thereto, the following  entries shall be inserted, namely: –

68B Heading 9991 or any other Heading

Services supplied by a State Government to Excess Royalty Collection Contractor (ERCC) by way of assigning the right to collect royalty on behalf of the State Government on the mineral dispatched by the mining lease holders.
Explanation.- “mining lease holder” means a person who has been granted mining lease, quarry lease or license or other mineral concession under the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the rules made thereunder or the rules made by a State Government under sub-section (1) of section 15 of the Mines and Minerals (Development and Regulation) Act, 1957.

Provided that at the end of the contract period, ERCC shall submit an account to the State Government and certify that the amount of goods and services tax deposited by mining lease holders on royalty is more than the goods and services tax exempted on the service provided by State Government to the ERCC of assignment of right to collect royalty and where such amount of goods and services tax paid by mining lease holders is less than the amount of goods and services tax exempted, the exemption shall be restricted to such amount as is equal to the amount of goods and services tax paid by the mining lease holders and the ERCC shall pay the difference between goods and
6 services tax exempted on the service provided by State Government to the ERCC of assignment of right to collect royalty and goods and services tax paid by the mining lease holders on royalty.”; (o) after serial number 80 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –

“80A Heading 9995

Services provided by an unincorporated body or a non-profit entity registered under any law for the time being in force, engaged in,-
(i) activities relating to the welfare of industrial or agricultural labour or farmer; or
(ii) promotion of trade, commerce, industry, agriculture, art, science, literature, culture, sports, education, social welfare, charitable activities and protection of environment,
to its own members against consideration in the form of membership fee upto an amount of one thousand rupees (Rs 1000/-) per member per year.

Nil”; (ii) in paragraph 3, in the Explanation, after clause (iii), the following clause shall be inserted, namely:- “(iv) For removal of doubts, it is clarified that the Central and State Educational Boards shall be treated as Educational Institution for the limited purpose of providing services by way of conduct of examination to the students.”. 2. This notification shall come into force with effect from 27th of July, 2018.

Note: -The principal notification No. 9/2017 – Integrated Tax (Rate), dated the 28thJune, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 684 (E), dated the 28thJune, 2017 and was last amended by notification No.2/2018 – Integrated Tax (Rate), dated the 25th January, 2018vide number G.S.R. 70(E), dated the 25th January, 2018.

[F. No.354/13/2018 -TRU]

(Gunjan Kumar Verma)

Under Secretary to the Government of India