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DIVISION ONE 1
DIVISION TWO 2
DIVISION THREE
Tax liability on composite and mixed supplies.
18. The tax liability on a composite or a mixed supply shall be determined in the following manner, namely:—
(
(
a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and
b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.
RELEVANT CIRCULARS
TAXABILITY IN CASE OF BUY ONE GET ONE FREE OFFER - As per section 7(1)(a) of the CGST Act, the goods or services which are supplied free of cost (without any consideration) shall not be treated as ‘supply’ under GST (except in case of activities mentioned in Schedule I of the said Act). It may appear at first glance that in case of offers like ‘Buy One, Get One Free’, one item is being ‘supplied free of cost’ without any consideration. In fact, it is not an individual supply of free goods but a case of two or more individual supplies where a single price is being charged for the entire supply. It can at best be treated as supplying two goods for the price of one Taxability of such supply will be dependent upon as to whether the supply is a composite supply or a mixed supply and the rate of tax shall be determined as per the provisions of section 8 of the said Act.—Circular No. 92/11/2019-GST, dated 7-3-2019.
COMPOSITE AND MIXED SUPPLY INSOFAR AS EDUCATION IS CONCERNED - Boarding schools provide service of education coupled with other services like providing dwelling units for residence and food. This may be a case of bundled services if the charges for education and lodging and boarding are inseparable. Their taxability will be determined in terms of the principles laid down in section 2(30) read with section 8 of the CGST Act, 2017. Such services in the case of boarding schools are naturally bundled and supplied in the ordinary course of business. Therefore, the bundle of services will be treated as consisting entirely of the principal supply, which means the service which forms the predominant element of such a bundle. In this case since the predominant nature is determined by the service of education, the other service of providing residential dwelling will not be considered for the purpose of determining the tax liability and in this case the entire consideration for the supply will be exempt.
Let’s take another example where a course in a college leads to dual qualification only one of which is recognized by law. Would service provided by the college by way of such education be covered by the exemption notification? Provision of dual qualifications is in the nature of two separate services as the curriculum and fees for each of such qualifications are prescribed separately. Service in respect of each qualification would, therefore, be assessed separately. 1.91
1. Enforced with effect from 1-7-2017.
S. 8
If an artificial bundle of service is created by clubbing two courses together, only one of which leads to a qualification recognized by law, then by application of the rule of determination of taxability of a supply which is not bundled in the ordinary course of business, it shall be treated as a mixed supply as per provisions contained in section 2(74) read with section 8 of the CGST Act, 2017. The taxability will be determined by the supply which attracts highest rate of GST.
However incidental auxiliary courses provided by way of hobby classes or extra-curricular activities in furtherance of overall well-being will be an example of naturally bundled course, and therefore treated as composite supply. One relevant consideration in such cases will be the amount of extra billing being done for the unrecognized component vis-a-vis the recognized course. If extra billing is being done, it may be a case of artificial bundling of two different supplies, not supplied together in the ordinary course of business, and therefore will be treated as a mixed supply, attracting the rate of the higher taxed component for the entire consideration.
The Education guide of 2012 for the purpose of service tax has given the following important clarifications in respect of educational services. The same can be gainfully referred to, for the purpose of clarity under the GST regime:
“The supply of placement services provided to educational institutions for securing job placements for the students shall be liable to service tax. Similarly, educational institutes such as IITs, IIMs charge a fee from prospective employers like corporate houses/MNCs, who come to the institutes for recruiting candidates through campus interviews in relation to campus recruitments. Such services shall also be liable to service tax.”—Press Release, dated 16-10-2017
ACTIVITY OF BUS BODY BUILDING, IS A SUPPLY OF GOODS OR SERVICES - In the case of bus body building there is supply of goods and services. Thus, classification of this composite supply, as goods or services would depend on which supply is the principal supply which may be determined on the basis of facts and circumstances of each case.—Circular No. 34/8/2018-GST, dated 1-3-2018.
RETREADING OF TYRES IS A SUPPLY OF GOODS OR SERVICES - In retreading of tyres, which is a composite supply, the pre-dominant element is the process of retreading which is a supply of service. Rubber used for retreading is an ancillary supply. Which part of a composite supply is the principal supply, must be determined keeping in view the nature of the supply involved. Value may be one of the guiding factors in this determination, but not the sole factor. The primary question that should be asked is what is the essential nature of the composite supply and which element of the supply imparts that essential nature to the composite supply. Supply of retreaded tyres, where the old tyres belong to the supplier of retreaded tyres, is a supply of goods.—Circular No. 34/8/2018-GST, dated 1-3-2018.
SALE OF CINEMA TICKET AND SUPPLY OF FOOD AND BEVERAGES IS COMPOSITE
SUPPLY - Where the sale of cinema ticket and supply of food and beverages are clubbed together, and such bundled supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to service of exhibition of cinema, the principal supply.—Circular No. 201/13/2023-GST, dated 1-8-2023
GST ON REIMBURSEMENT OF ELECTRICITY CHARGES RECEIVED BY REAL ESTATE COMPANIES, MALLS, AIRPORT OPERATORS ETC. FROM THEIR LESSEES/OCCUPANTS
- Whenever electricity is being supplied bundled with renting of immovable property and/or maintenance of premises, as the case may be, it forms a part of composite supply and shall be taxed accordingly. The principal supply is renting of immovable property
and/or maintenance of premise, as the case may be, and the supply of electricity is an ancillary supply as the case may be. Even if electricity is billed separately, the supplies will constitute a composite supply and therefore, the rate of the principal supply i.e., GST rate on renting of immovable property and/or maintenance of premise, as the case may be, would be applicable. - Circular No. 206/18/2023-GST, dated 31-10-2023.
INCIDENTAL/ANCILLARY SERVICES SUCH AS LOADING/UNLOADING, PACKING, UNPACKING, TRANSSHIPMENT, TEMPORARY WAREHOUSING ETC., PROVIDED IN RELATION TO TRANSPORTATION OF GOODS BY ROAD IS TO BE TREATED AS PART OF GOODS TRANSPORT AGENCY SERVICE, AND COMPOSITE SUPPLY, OR NOT - Ancillary or incidental services provided by GTA in the course of transportation of goods by road, such as loading/unloading, packing/unpacking, transshipment, temporary warehousing etc. will be treated as composite supply of transport of goods. The method of invoicing used by GTAs will not generally alter the nature of the composite supply of service. However, if such services are not provided in the course of transportation of goods and are invoiced separately, then these services will not be treated as composite supply of transport of goods.—Circular No. 234/28/2024-GST, dated 11-10-2024.
GST ON PREFERENTIAL LOCATION CHARGES (PLC) COLLECTED ALONG WITH CONSIDERATION FOR SALE/TRANSFER OF RESIDENTIAL/COMMERCIAL PROPERTIESLocation charges or Preferential Location Charges (PLC) paid along with the consideration for the construction services of residential/commercial/industrial complex forms part of composite supply where supply of construction services is the main service and PLC is naturally bundled with it and are eligible for same tax treatment as the main supply of construction service.—Circular No. 234/28/2024-GST, dated 11-10-2024.
RELEVANT CASE LAWS
Constitutional Validity of Circular - Circular No. 34/8/2018-GST, dated 1-3-2018 which proposed levy of GST by DISCOMS against recovery of charges from consumers under State Electricity Act towards activities related with transmission and distribution of electricity, such as application fee, testing fee, labour charges for shifting meters, etc. being ultra vires provisions of section 8 of CGST Act, 2017 as well as Notification No. 12/2017 - Central Tax (Rate) Sl. No. 25, was to be struck down. - Torrent Power Ltd. v. Union of India [2019] 101 taxmann.com 303 (Guj.)
Importer, in case of - Since Indian importer is liable to pay IGST on ‘composite supply’, comprising of supply of goods and supply of services of transportation, insurance, etc. in a CIF contract, a separate levy on Indian importer for ‘supply of services’ by shipping line would be in violation of section 8 of CGST Act; assessee would be entitled to refund of IGST paid by it - Chambal Fertilisers and Chemicals Ltd. v. Union of India [2024] 158 taxmann.com 355 (Rajasthan)
Municipal Corporation - Where petitioner, engaged in maintenance of street lights, paid GST on services rendered by it and claimed reimbursement of same from municipality, since there was a long gap concerning reimbursement of tax paid by petitioner, municipality should reimburse amount paid by petitioner along with interest at rate of 9 per cent - BSES Rajdhani Power Ltd. v. North Delhi Municipal Corporation [2023] 157 taxmann.com 291 (Delhi)
Levy and Collection.
19. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption 2[and undenatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption], on the value determined under section 15 and at such rates, not exceeding twenty per cent, as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person.
(2) The central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council.
(3) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
3[(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.]
(5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall
1. Enforced with effect from 1-7-2017.
2. Inserted by the Finance (No. 2) Act, 2024, w.e.f. 1-11-2024.
3. Substituted by the Central Goods and Services Tax (Amendment) Act, 2018, w.e.f. 1-2-2019. Prior to its substitution, sub-section (4) read as under :
“(4) The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.”
1.95
CH. III - LEVY AND COLLECTION OF TAX S. 9
apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services:
Provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax:
Provided further that where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax.
RELEVANT NOTIFICATIONS
REVERSE CHARGE ON CERTAIN SPECIFIED SUPPLIES OF GOODS - In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby specifies the supply of goods, the description of which is specified in column (3) of the Table below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Table, made by the person as specified in the corresponding entry in column (4), in respect of which the central tax shall be paid on reverse charge basis by the recipient of the intra-State supply of such goods as specified in the corresponding entry in column (5) and all the provisions of the said Act shall apply to such recipient, namely:—
TABLE
S. No. Tariff item, sub-heading, heading or Chapter
1. 0801
Description of supply of Goods
Cashew nuts, not shelled or peeled
2. 1404 90 10 Bidi wrapper leaves (tendu)
Supplier of goods Recipient of supply
Agriculturist Any registered person
Agriculturist Any registered person
3. 2401 Tobacco leaves Agriculturist Any registered person
S. 9 CENTRAL GOODS AND SERVICES TAX ACT, 2017 1.96
S. No. Tariff item, sub-heading, heading or Chapter
Description of supply of Goods
Supplier of goods
Recipient of supply
(1) (2) (3) (4) (5)
1[3A. 3301 24 00, 3301 25 10, 3301 25 20, 3301 25 30, 3301 25 40, 3301 25 90
Following essential oils other than those of citrus fruit namely:—
(a) Of peppermint (Mentha piperita);
(b) Of other mints: Spearmint oil (ex-menthaspicata), Water mintoil (exmentha aquatic), Horsemint oil (ex-mentha sylvestries), Bergament oil (ex-mentha citrate), Mentha arvensis
Any unregistered Person Any registered person]
4. 5004 to 5006 Silk yarn Any person who manufactures silk yam from raw silk or silk worm cocoons for supply of silk yarn Any registered person
2[4A. 5201 Raw cotton Agriculturist Any registered person]
1. Substituted by Notification No. 14/2022-Central Tax (Rate), dated 30-12-2022, w.e.f. 1-1-2023. Earlier, Sl. No. 3A was inserted by Notification No. 10/2021-Central Tax (Rate), dated 30-92021, w.e.f. 1-10-2021, read as under :
“3A. 33012400, 33012510, 33012520, 33012530, 33012540
Following essential oils other than those of citrus fruit namely:—
(a) Of peppermint (Mentha piperita);
(b) Of other mints: Spearmint oil (exmethaspicata), Water mint-oil (ex-mentha aquatic), Horsemint oil (ex-menthasylvestries), Bergament oil (ex-mentha citrate).
Any unregistered person Any registered person”
2. Inserted by Notification No. 43/2017-Central Tax (Rate), dated 14-11-2017, w.e.f. 15-11-2017.
S. No. Tariff item, sub-heading, heading or Chapter
Description of supply of Goods
Supplier of goods
Recipient of supply
(1) (2) (3) (4) (5)
5. Supply of lottery State Government, Union Territory or any local authority
Lottery distributor or selling agent.
Explanation.—For the purposes of this entry, lottery distributor or selling agent has the same meaning as assigned to it in clause (c) of Rule 2 of the Lotteries (Regulation) Rules, 2010, made under the provisions of sub-section (1) of section 11 of the Lotteries (Regulation) Act, 1998 (17 of 1998).
1[6. Any Chapter Used vehicles, seized and confiscated goods, old and used goods, waste and scrap
2[Central Government [excluding Ministry of Railways (Indian Railways)], State Government, Union territory or a local authority]
Any registered person]
3[7. Any Chapter Priority Sector Lending Certificate
4[8. 72, 73, 74, 75, 76, 77, 78, 79, 80 or 81
Explanation.
Any registered person
Metal scrap Any unregistered person
Any registered person]
Any registered person]
(1) In this Table, “tariff item”, “sub-heading”, “heading” and “Chapter” shall mean respectively a tariff item, sub-heading, heading or chapter, as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
(2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.
1. Inserted by Notification No. 36/2017-Central Tax (Rate), dated 13-10-2017, w.e.f. 13-10-2017.
2. Substituted for “Central Government, State Government, Union territory or a local authority” by Notification No. 19/2023-Central Tax (Rate), dated 19-10-2023, w.e.f. 20-10-2023.
3. Inserted by Notification No. 11/2018-Central Tax (Rate), dated 28-5-2018, w.e.f. 28-5-2018.
4. Inserted by Notification No. 6/2024-Central Tax (Rate), dated 8-10-2024, w.e.f. 10-10-2024.
2. This notification shall come into force with effect from the 1st day of July, 2017.— Notification No. 4/2017-Central Tax (Rate), dated 28-6-2017, as amended by, Notification No. 36/2017- Central Tax (Rate), dated 13-10-2017, Notification No. 43/2017Central Tax (Rate), dated 14-11-2017, Notification No. 11/2018-Central Tax (Rate), dated 28-5-2018, Notification No. 10/2021-Central Tax (Rate), dated 30-9-2021, Notification No. 14/2022-Central Tax (Rate), dated 30-12-2022, Notification No. 19/2023Central Tax (Rate), dated 19-10-2023 and 6/2024-Central Tax (Rate), dated 8-10-2024.
REVERSE CHARGE ON CERTAIN SPECIFIED SUPPLIES OF SERVICES - In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government on the recommendations of the Council hereby notifies that on categories of supply of services mentioned in column (2) of the Table below, supplied by a person as specified in column (3) of the said Table, the whole of central tax leviable under section 9 of the said Central Goods and Services Tax Act, shall be paid on reverse charge basis by the recipient of the such services as specified in column (4) of the said Table:—
TABLE
Sl. No. Category of Supply of Services Supplier of service Recipient of Service (1) (2) (3) (4)
1 Supply of Services by a goods transport agency (GTA) 1[, 2[***]] in respect of transportation of goods by road to—
(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948); or
(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or
(
c) any co-operative society established by or under any law; or
Goods Transport Agency (GTA)
(a) Any factory registered under or governed by the Factories Act, 1948 (63 of 1948); or
(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or
(c) any co-operative society established by or under any law; or
(d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or S.
(d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the
1. Inserted by Notification No. 22/2017-Central Tax (Rate), dated 22-8-2017.
2. Words “who has not paid central tax at the rate of 6%,” omitted by Notification No. 5/2022Central Tax (Rate), dated 13-7-2022, w.e.f. 18-7-2022.
Union Territory Goods and Services Tax Act; or
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons; or
(g) any casual taxable person:
1[Provided that nothing contained in this entry shall apply to services provided by a goods transport agency, by way of transport of goods in a goods carriage by road, to,—
(a) a Department or Establishment of the Central Government or State Government or Union territory; or
(b) local authority; or
(c) Governmental agencies, which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 and not for making a taxable supply of goods or services:]
2 [ Provided further that nothing contained in this entry shall apply where,—
(i) the supplier has taken registration under the CGST Act, 2017 and exercised the option to pay tax on the services of GTA in relation to transport of goods supplied by him under forward charge; and
the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons; or
(g) any casual taxable person; located in the taxable territory.
1. Inserted by Notification No. 29/2018-Central Tax (Rate), dated 31-12-2018, w.e.f. 1-1-2019.
2. Inserted by Notification No. 5/2022-Central Tax (Rate), dated 13-7-2022, w.e.f. 18-7-2022.
(1) (2) (3) (4)
(ii) the supplier has issued a tax invoice to the recipient charging Central Tax at the applicable rates and has made a declaration as prescribed in Annexure III on such invoice issued by him.]
2 1[Services provided by an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly.
Explanation.—“Legal service” means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority.]
3 Services supplied by an arbitral tribunal to a business entity.
4 Services provided by way of sponsorship to any body corporate or partnership firm.
5 Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding,—
(1) renting of immovable property, and
(2) services specified below—
(i) services by the Department of Posts 3[***] 4[and the Ministry of Railways (Indian Railways)];
(ii) services in relation to an aircraft or a vessel,
An individual advocate including a senior advocate or firm of advocates.
Any business entity located in the taxable territory.
An arbitral tribunal.
Any person 2[other than a body corporate]
Central Government, State Government, Union territory or local authority
Any business entity located in the taxable territory.
Any body corporate or partnership firm located in the taxable territory.
Any business entity located in the taxable territory.
1. As corrected by Corrigendum GSR 1199(E), dated 25-9-2017.
2. Inserted by Notification No. 7/2025-Central Tax (Rate), dated 16-1-2025, w.e.f. 16-1-2025
3. Words “by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government, State Government or Union territory or local authority” omitted by Notification No. 5/2022-Central Tax (Rate), dated 13-7-2022, w.e.f. 18-7-2022.
4. Inserted by Notification No. 14/2023-Central Tax (Rate), dated 19-10-2023, w.e.f. 20-10-2023. S. 9
Sl. No.
Category of Supply of Services
Supplier of service Recipient of Service
(1) (2) (3) (4)
inside or outside the precincts of a port or an airport; (iii) transport of goods or passengers.
1[5A Services supplied by the Central Government 2[[excluding the Ministry of Railways (Indian Railways)]], State Government, Union territory or local authority by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017 (12 of 2017)
3[5AA Service by way of renting of residential dwelling to a registered person.
4[5AB Service by way of renting of any 5[immovable] property other than residential dwelling.
7[5B Services supplied by any person by way of transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project by a promoter.
5C Long term lease of land (30 years or more) by any person against consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) and/or periodic rent for construction of a project by a promoter.
6 Services supplied by a director of a company or a body corporate to the said company or the body corporate.
Central Government, State Government, Union territory or local authority
Any person registered under the Central Goods and Services Tax Act, 2017.]
Any person Any registered person.]
Any unregistered person
Any registered person 6[other than a person who has opted to pay tax under composition levy].]
Any person Promoter.
Any person Promoter.]
A director of a company or a body corporate
The company or a body corporate located in the taxable territory.
1. Inserted by Notification No. 3/2018-Central Tax (Rate), dated 25-1-2018, w.e.f. 25-1-2018.
2. Inserted by Notification No. 14/2023-Central Tax (Rate), dated 19-10-2023, w.e.f. 20-10-2023.
3. Inserted by Notification No. 5/2022-Central Tax (Rate), dated 13-7-2022, w.e.f. 18-7-2022.
4. Inserted by Notification No. 9/2024-Central Tax (Rate), dated 8-10-2024, w.e.f. 10-10-2024.
5. As corrected by Corrigendum GSR 652(E), dated 22-10-2024.
6. Inserted by Notification No. 7/2025-Central Tax (Rate), dated 16-1-2025, w.e.f. 16-1-2025
7. Inserted by Notification No. 5/2019-Central Tax (Rate), dated 29-3-2019, w.e.f. 1-4-2019.
Sl. No.
Category of Supply of Services
Supplier of service Recipient of Service
7 Services supplied by an insurance agent to any person carrying on insurance business. An insurance agent Any person carrying on insurance business, located in the taxable territory.
8 Services supplied by a recovery agent to a banking company or a financial institution or a non-banking financial company.
1[9 Supply of services by a music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original dramatic, musical or artistic works to a music company, producer or the like.
2[9A Supply of services by an author by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original literary works to a publisher.
A recovery agent A banking company or a financial institution or a non-banking financial company, located in the taxable territory.
Music composer, photographer, artist, or the like
Music company, producer or the like, located in the taxable territory.]
Author Publisher located in the taxable territory:
Provided that nothing contained in this entry shall apply where,— (i) the author has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017), and filed a declaration, in the form at Annexure I, within the time limit prescribed therein, with the jurisdictional CGST or SGST Commissioner, as the case may be, that he exercises the option to pay central tax on
1. Substituted by Notification No. 22/2019-Central Tax (Rate), dated 30-9-2019, w.e.f. 1-10-2019. Prior to its substitution, Sl. No. 9 read as under :
“9 Supply of services by an author, music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the like.
2. Inserted, ibid
Author or music composer, photographer, artist, or the like
Publisher, music company, producer or the like, located in the taxable territory.”
1.103 CH. III - LEVY AND COLLECTION OF TAX S. 9
1[10 Supply of services by the members of Overseeing Committee to Reserve Bank of India
2[11 Services supplied by individual Direct Selling Agents (DSAs) other than a body corporate, partnership or limited liability partnership firm to bank or non-banking financial company (NBFCs).
Members of Overseeing Committee constituted by the Reserve Bank of India
the service specified in column (2), under forward charge in accordance with section 9(1) of the Central Goods and Services Tax Act, 2017 under forward charge, and to comply with all the provisions of Central Goods and Services Tax Act, 2017 (12 of 2017) as they apply to a person liable for paying the tax in relation to the supply of any goods or services or both and that he shall not withdraw the said option within a period of 1 year from the date of exercising such option; (ii) the author makes a declaration, as prescribed in Annexure II on the invoice issued by him in Form GST Inv-I to the publisher.]
Reserve Bank of India.]
Individual Direct Selling Agents (DSAs) other than a body corporate, partnership or limited liability partnership firm. A banking company or a non-banking financial company, located in the taxable territory.]
1. Inserted by Notification No. 33/2017-Central Tax (Rate), dated 13-10-2017, w.e.f. 13-10-2017.
2. Inserted by Notification No. 15/2018-Central Tax (Rate), dated 26-7-2018, w.e.f. 27-7-2018. Sl.
Sl. No.
Category of Supply of Services
Supplier of service
Recipient of Service (1) (2) (3) (4)
1[12 Services provided by business facilitator (BF) to a banking company
13 Services provided by an agent of business correspondent (BC) to business correspondent (BC)
14 Security services (services provided by way of supply of security personnel) provided to a registered person:
Provided that nothing contained in this entry shall apply to,—
(i)(a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or
(c) Governmental agencies; which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 of the said Act and not for making a taxable supply of goods or services; or
(ii) a registered person paying tax under section 10 of the said Act.
2[3[15 Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient, provided to a body corporate.
Business facilitator (BF)
An agent of business correspondent (BC)
Any person other than a body corporate
A banking company, located in the taxable territory
A business correspondent, located in the taxable territory
A registered person, located in the taxable territory.]
Any person, other than a body corporate who supplies the service to a body corporate and does not issue an invoice charging central tax at the rate of 6 per cent to the service recipient
Any body corporate located in the taxable territory.]
1. Inserted by Notification No. 29/2018-Central Tax (Rate), dated 31-12-2018, w.e.f. 1-1-2019.
2. Serial Nos. 15 and 16 inserted by Notification No. 22/2019-Central Tax (Rate), dated 30-9-2019, w.e.f. 1-10-2019.
3. Substituted by Notification No. 29/2019-Central Tax (Rate), dated 31-12-2019, w.e.f. 31-122019. Prior to its substitution, Sl. No. 15 read as under:
“15. Services provided by way of renting of a motor vehicle provided to a body corporate.
Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business
Any body corporate located in the taxable territory.”
Sl. No.
Category of Supply of Services
Supplier of service Recipient of Service
(1) (2) (3) (4)
16 Services of lending of securities under Securities Lending Scheme, 1997 (“Scheme”) of Securities and Exchange Board of India (“SEBI”), as amended.
Lender i.e. a person who deposits the securities registered in his name or in the name of any other person duly authorised on his behalf with an approved intermediary for the purpose of lending under the Scheme of SEBI
Explanation.—For purpose of this notification,—
(
(
(
Borrower i.e. a person who borrows the securities under the Scheme through an approved intermediary of SEBI.]
a) the person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification;
b) “Body Corporate” has the same meaning as assigned to it in clause (11) of section 2 of the Companies Act, 2013;
c) the business entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the person who receives the legal services for the purpose of this notification;
(d) the words and expressions used and not defined in this notification but defined in the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, and the Union Territory Goods and Services Tax Act shall have the same meanings as assigned to them in those Acts;
1[(e) a “Limited Liability Partnership” formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (6 of 2009) shall also be considered as a partnership firm or a firm;]
2[(f) “insurance agent” shall have the same meaning as assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938);]
3[(g) “renting of immovable property” means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property;]
4[(h) provisions of this notification, in so far as they apply to the Central Government and State Governments, shall also apply to the Parliament 5[,State Legislatures, Courts and Tribunals];]
1. Inserted by Notification No. 22/2017-Central Tax (Rate), dated 22-8-2017.
2. Inserted by Notification No. 3/2018-Central Tax (Rate), dated 25-1-2018, w.e.f. 25-1-2018.
3. Inserted by Notification No. 15/2018-Central Tax (Rate), dated 26-7-2018, w.e.f. 27-7-2018.
4. Inserted by Notification No. 29/2018-Central Tax (Rate), dated 31-12-2018, w.e.f. 1-1-2019.
5. Substituted for “and State Legislatures” by Notification No. 2/2023-Central Tax (Rate), dated 28-2-2023, w.e.f. 1-3-2023.
(
1[(i) the term “apartment” shall have the same meaning as assigned to it in clause (e) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);
(
j) the term “promoter” shall have the same meaning as assigned to it in clause (zk) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);
(
k) the term “project” shall mean a Real Estate Project (REP) or a Residential Real Estate Project (RREP);
(
l) the term “Real Estate Project (REP)” shall have the same meaning as assigned to it in clause (zn) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);
m) the term “Residential Real Estate Project (RREP)” shall mean a REP in which the carpet area of the commercial apartments is not more than 15 per cent of the total carpet area of all the apartments in the REP;
(
n) “floor space index (FSI)” shall mean the ratio of a building’s total floor area (gross floor area) to the size of the piece of land upon which it is built.]
2. This notification shall come into force on the 1st day of July, 2017.
2[ANNEXURE I FORM [9A of Table]
(Declaration to be filed by an author for exercising the option to pay tax on the “supply of services by an author by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original literary works to a publisher” under forward charge on or before 31-10-2019 for the option to be effective from 1-11-2019 or before the commencement of any Financial Year for the option to be effective from the commencement of that Financial Year.)
Reference No. ..............................
To
Date ....................
(To be addressed to the jurisdictional Commissioner)
1. Name of the author:
2. Address of the author:
3. GSTIN of the author: Declaration
1. I have taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017), and I hereby exercise the option to pay central tax on the service specified against serial No. 9A in column (2) of the Table in the notification No. 13/2017-Central Tax (Rate), dated the 28th June, 2017, supplied by me, under forward
1. Clauses (i) to (n) inserted by Notification No. 5/2019-Central Tax (Rate), dated 29-3-2019, w.e.f. 1-4-2019.
2. Inserted by Notification No. 22/2019-Central Tax (Rate), dated 30-9-2019, w.e.f. 1-10-2019.
Rs. 3,195/-