The Central Government has amended Notification No. 11/2017- Central Tax (Rate) dated June 28, 2017 in the following manner:
- The description contained in item (i) under s.no. 7 has been rationalised and two explanations has been inserted to clarify the places where such services can be supplied and it specifically excludes supplies covered in S. No. 5.
- Option has been provided by way of insertion of item (ia) to tax “supply of goods, being food or any other article for human consumption or any drink, by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms” at 5% without claiming input tax credit.
- In items (ii), (vi) and (viii) under S. No. 7 of GST Services Rate Notification dealing with accommodation services, word “declared tariff” has now been substituted with “value of supply” and explanation in respective item no. dealing with meaning of declared tariff has been omitted.
Thus, Hotel industry has been given major relief by providing that the rate of tax on accommodation service shall be based on transaction value instead of declared tariff.
- The description contained in item (v) in S. No. 7 dealing with outdoor catering services has been rationalised to include only those supplies by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, atExhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event based and occasional in nature.
- Specified rate of 12% has been prescribed where contract of transportation of goods is multi-modal.
- As a green initiative, GST on supply of e-books has been reduced from 18 to 5%.