Notification No. 01/2018-Integrated Tax (Rate) ,dt. 25-01-2018-Seeks to amend notification No. 8/2017- Integrated Tax (Rate) so as to notify IGST rates of various services as recommended by Goods and Services Tax Council in its 25th meeting held on 18.01.2018.

[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. 1/2018-Integrated Tax (Rate)

New Delhi, the 25th January, 2018

G.S.R……(E).- In exercise of the powers conferred by sub-section (1) of section 5, subsection (1) of section 6 and clause (iii) and clause (iv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (5) of section 15 and subsection (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2017- 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. 683(E), dated the 28th June, 2017, namely:-

In the said notification,
(a) against serial number
(A) in item (iv),
(I) for sub-item (c), the following sub-item shall be substituted, namely: –
‘(c) a civil structure or any other original works pertaining to the “ln-situ redevelopment of existing slums using land as a resource, under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban);’; (II) after sub-item (d), the following sub-items shall be inserted, namely: –

‘(da) a civil structure or any other original works pertaining to the “Economically Weaker Section (EWS) houses” constructed under the Affordable Housing in partnership by State or Union Territory or local authority or urban development authority under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban); 2 (db) a civil structure or any other original works pertaining to the “houses constructed or acquired under the Credit Linked Subsidy Scheme for Economically Weaker Section (EWS)/ Lower Income Group (LIG)/ Middle Income Group-1 (MlG-1)/ Middle Income Group-2 (MlG-2)” under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban);’; (III) after sub-item (f), the following sub-items shall be inserted, namely: –

“(g) a building owned by an entity registered under section 12AA of the Income Tax Act, 1961 (43 of 1961), which is used for carrying out the activities of providing, centralised cooking or distribution, for mid-day meals under the mid-day meal scheme sponsored by the Central Government, State Government, Union territory or local authorities.”; (B) in item (v), (I) in sub-item (a), for the word “excluding”, the word “including” shall be substituted;
(II) after sub-item (d), the following sub-item shall be inserted, namely: –

“(da) low-cost houses up to a carpet area of 60 square metres per house in an affordable housing project which has been given infrastructure status vide notification of Government of India, in Ministry of Finance, Department of
Economic Affairs vide  F. No. 13/6/2009-INF, dated the 30th March, 2017;”; (C) for item (ix) and the entries relating thereto in following shall be substituted, namely: –

“(ix) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 provided by a sub-contractor to the main contractor providing services specified in item  Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity.

12 Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be.

(x) Composite supply of works 5 Provided that where the services are 3 contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 provided by a sub-contractor to the main contractorproviding services specified in item Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity. supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be.

(xi) Services by way of housekeeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not liable for registration under subsection of section 22 of the Central
Goods and Services Tax Act, 2017.

5 Provided that credit of input tax charged on goods and services has not been taken [Please refer to Explanation no.
(iv)].

(xii) Construction services other than inst serial number 9, in the entry in  the words “natural gas”, the words and brackets “natural gas, petroleum crude, motor spirit (commonly known as petrol), high speed diesel or aviation turbine fuel” shall be substituted; (c) against serial number 10, for item the entries relating thereto in the following shall be substituted, namely: –

(ii) Time charter of vessels for transport of goods.

5 Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) has not been taken [Please refer to Explanation no. (iv)].

(iii) Rental services of transport vehicles with or without operators.

(d) for serial number 16 and the entries relating thereto, the following shall be substituted, namely: –

“16 Heading 9972

(i)Services by the Central Government, State Government, Union territory or local authority to governmental authority or government entity, by way of lease of land. Nil –

(ii) Supply of land or undivided share of land by way of lease or sub lease where such supply is a part of composite supply of construction of flats etc.

Provided that nothing contained in this entry shall apply to an amount charged for such lease and sub-lease in excess of one third of the total amount charged for the said composite supply. Total amount shall have the same meaning for the purpose of this proviso as given in paragraph 2 of this notification. Nil –

“(vii) Time charter of vessels for transport of goods.

5 Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and
tankers) has not been taken [Please refer to Explanation no. (iv)].

(viii) Leasing or rental services, with or without operator Same rate of integrated tax as applicable on supply of like
goods involving transfer of title in goods.

5 (f) against serial number 23, against item  after the words “supplying the service”, the words and brackets “, other than the input tax credit of input service in the same line of business (i.e. tour operator service procured from another tour operator)” shall be inserted; (g) against serial number 23, for item the following shall be substituted, namely: –

(ii) Services by way of house-keeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017.

5 Provided that credit of input tax charged on goods and services has not been taken [Please refer to Explanation no.
(iv)].

(iii) Support services

(h) against serial number 24,-
(A) in the Explanation to item the following sub-clause shall be inserted, namely :-

(h) services by way of fumigation in a warehouse of agricultural produce.”;
(B) for item and the entries relating the following shall be substituted, namely: –

(ii) Service of exploration, mining or drilling of petroleum crude or natural gas or both.

(iii) Support services to mining, electricity, gas and water distribution.

(i) for serial number 25 and the entries relating thereto, the following shall be substituted, namely:-

“25 Heading 9987

(i) Services by way of house-keeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic 5 Provided that credit of input tax charged on goods 6 commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017 and services has
not been taken [Please refer to Explanation no. (iv)].

(ii) Maintenance, repair and installation (except construction) services.

(j) against serial number
(A) in item the following sub-item shall be inserted, namely: –

(ea) manufacture of leather goods or footwear falling under Chapter 42 or 64 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) respectively.

(B) for item (iii) and the entries relating thereto in the following shall be substituted, namely: –

(iii) Tailoring services. 5 –

(iv) Manufacturing services on physical inputs.

(k) for serial number 32 and the entries relating thereto, the following shall be substituted, namely:-

“32 Heading 9994

(i)Services by way of treatment of effluents by a Common Effluent Treatment Plant.

(ii) Sewage and waste collection, treatment and disposal and other environmental protection services.

(l) against serial number
(A) for item the entries relating thereto the following shall be substituted, namely: –

(iii) Services by way of admission to amusement parks including theme parks, water parks, joy rides, merry-go rounds, go-carting and ballet.

(iiia) Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, casinos, race club, any sporting event such as Indian Premier League and the like.

(B) in item the brackets and figures the brackets and figures  shall be inserted; for paragraph 2, the following shall be substituted, namely: –

“2. In case of supply of service specified, involving transfer of land or undivided share of land, as the case may be, the value of such supply shall be equivalent to the total amount charged for such supply less the value of transfer of land or undivided share of land, as the case may be, and the value of such transfer of land or undivided share of land, as the case may be, in such supply shall be deemed to be one third of the total amount charged for such supply.

Explanation. –For the purposes of this paragraph, “total amount” means the sum total of,-

(a) consideration charged for aforesaid service; and
(b) amount charged for transfer of land or undivided share of land, as the case may be including by way of lease/sublease.

[F. No.354/13/2018-TRU]
(Ruchi Bisht)
Under Secretary to the Government of India

Note: – The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 8/2017 – Integrated Tax(Rate), dated the 28thJune, 2017, vide number G.S.R. 683 (E), dated the 28th June, 2017 and was last amended by notification No. 48/2017-Integrated Tax (Rate), dated the 14th November, 2017 vide number G.S.R. 1407(E), dated the 14th November, 2017.