CircularNo.234/28/2024-GST
F.No.CBIC-190354/149/2024-TO(TRU-II)-CBEC
GovernmentofIndia
MinistryofFinance
DepartmentofRevenue
(TaxResearchUnit)
NorthBlock,NewDelhi
Datedthe11
th
October2024
To,
ThePrincipalChiefCommissioners/ChiefCommissioners/PrincipalCommissioners/
CommissionersofCentralTax(All)/ThePrincipalDirectorGenerals/Director
Generals(All)
Madam/Sir,
Subject:ClarificationsregardingapplicabilityofGSToncertainservices–reg.
BasedontherecommendationsoftheGSTCouncilinits54
th
meetingheldon9thSeptember
2024,atNewDelhi,inexerciseofthepowersconferredundersection168(1)oftheCentral
GoodsandServicesTaxAct,2017,clarificationsonthefollowingissuesarebeingissued
throughthisCircularasunder:
2. ApplicabilityofGSTontheserviceofaffiliationprovidedbyuniversitiesto
colleges:
2.1RepresentationshavebeenreceivedseekingclarificationontheapplicabilityofGST
ontheserviceofaffiliationprovidedbyuniversitiestocolleges.
2.2Theactivityofaffiliationistomonitorandensurewhethertheinstitutionpossesses
therequiredinfrastructureintermsofspace,technicalprowess,financialliquidity,faculty
strength,etc.andistherebyeligiblefortheprivilegestoconductthecourse/programofstudy
forthedegree/titleextendedbytheUniversitytothestudentsenrolledinsuchinstitutions.
Theaffiliationservicesprovidedbytheuniversitiestocollegesarenotbywayofservices
relatedtotheadmissionofstudentstosuchcollegesortheconductofexaminationsbysuch
colleges.
2.3Thus,asrecommendedbythe54thGSTCouncil,itisherebyclarifiedthatthe
affiliationservicesprovidedbyuniversitiestotheirconstituentcollegesarenotcovered
withintheambitofexemptionsprovidedtoeducationalinstitutionsinthenotificationNo.
12/2017-CT(R)dated28.06.2017andGSTattherateof18%isapplicableontheaffiliation
servicesprovidedbytheuniversities.
3. ApplicabilityofGSTontheserviceofaffiliationprovidedbyCentralandState
educationalboardsorCouncils,orothersimilarbodies,toschools:
3.1RepresentationshavebeenreceivedtoclarifytheapplicabilityofGSTontheservice
ofaffiliationprovidedbytheCentralandStateeducationalboardsorcouncils,orother
similarbodies,toschoolsandtoregularizethepaymentoftaxonsuchservicesforthepast
period.
3.2Theactivityofaffiliationcarriedoutbyeducationalboardsorcouncils,orother
similarbodies,istomonitorandensurewhethertheschoolspossesstherequired
infrastructure,finances,facultystrengthetc.andaretherebyeligiblefortheprivilegesto
operateundertheaegisofsaidboardsorcouncils.Theservicesofaffiliationprovidedto
schoolsbyeducationalboardsorcouncils,orothersimilarbodies,arenotbywayofservices
relatedtotheadmissionofstudentstosuchschoolsortheconductofexaminationsbysuch
schools..
3.3ThematterwasplacedbeforetheGSTCouncilinits54thmeetingheldon09
th
September2024,andtheGSTCouncilrecommendedtoclarifythatsuchservicesof
affiliation,providedtoschoolsbyCentralorStateeducationalboardsorcouncils,orother
similarbodies,bywhatevernamecalled,aretaxable.Atthesametime,theGSTCouncil
recommendedexemptingthesupplyofaffiliationservicesprovidedbyCentralandState
educationalboardsorCouncils,orothersimilarbodies,bywhatevernamecalledto
governmentschoolsi.e.schoolsestablished,ownedorcontrolledbytheCentralGovernment,
StateGovernment,UnionTerritory,localauthority,GovernmentalauthorityorGovernment
entity.Thesamehasbeenexemptedw.e.f.10.10.2024videnotificationNo.08/2024-Central
Tax(Rate)dated08.10.2024.
3.4Inits54thmeeting,theGSTCouncilfurtherrecommendedregularizingtheGST
liabilityonsuchservicesprovidedtoallschoolsfortheperiodfrom01.07.2017to
17.06.2021,i.e.,thedateofissuanceofCircularNo.151/07/2021-GSTwhereinaccreditation
servicesofboardsareclarifiedtobetaxableattherateof18%.
3.5 Therefore,asrecommendedbytheGSTCouncil,itisclarifiedthatservicesof
affiliation,providedtoschoolsbyCentralorStateeducationalboardsorcouncils,orother
similarbodies,bywhatevernamecalled,aretaxable.Further,asrecommendedbythe
Council,thepaymentofGSTontheservicesofaffiliationprovidedbyCentralandState
educationalboardsorCouncils,orothersimilarbodies,toallschoolsisregularizedon‘asis
whereis’basisfortheperiodfrom01.07.2017to17.06.2021.
4. ApplicabilityofGSTontheDirectorateGeneralofCivilAviation(DGCA)
approvedflyingtrainingcoursesconductedbyFlyingTrainingOrganizationsapproved
bytheDGCA:
4.1RepresentationshavebeenreceivedregardingtheapplicabilityofGSTonthe
DGCA-approvedflyingtrainingcoursesconductedbyFlyingTrainingOrganizations(FTOs)
whichareapprovedbytheDirectorateGeneralofCivilAviation(DGCA).Thesamehas
beenexamined.
4.2UnderGSTLaw,videSl.No.66ofthenotificationNo.12/2017-CentralTax(Rate)
dated28.06.2017,servicesprovidedbyeducationalinstitutionstoitsstudents,facultyand
staffareexemptfromlevyofGST.Intheabovenotification,“educationalinstitution”has
beendefinedtomeananinstitutionprovidingservicesbywayofeducationasapartofa
curriculumforobtainingaqualificationrecognizedbyanylawforthetimebeinginforce.
4.3InexerciseofthepowervestedbySection5oftheAircraftAct,1934,theCentral
GovernmenthasmadetheAircraftRules,1937,which,inter-alia,providefor‘approved
training’,i.e.trainingthecurriculumofwhichhasbeenapprovedbytheDGCA,and
‘approvedtrainingorganization’,i.e.aflyingtrainingorganizationwhichshallobtainthe
approvalofDGCAbeforethestudentsareenrolledtoacquireflyingexperience.Thesaid
rulesfurtherstatethatflyingexperiencerequiredfortheissueofprivatepilotandcommercial
pilotlicensesshallbeacquiredattheFlyingTrainingOrganization(FTO)approved/
recognizedbytheDGCA.TheCivilAviationRequirements(CAR)issuedunderthesaid
rulesalsoprovideforacompletioncertificatetobeissuedbyanapprovedFTOtoeach
studentwhocompletesitsapprovedcourseoftraining.
4.4ItisevidentfromtheabovethattheDGCAnotonlyapprovesFTOsbutalsoflying
trainingcoursesandmandatestherequirementofcoursecompletioncertificatestobeissued
tosuccessfulcandidatesintermsoftheAircraftAct,1934andtherulesprescribed
thereunder.Therefore,theapprovedflyingtrainingcoursesconductedbyFTOsapprovedby
DGCA,whereintheDGCAmandatestherequirementofacompletioncertificate,arecovered
underSl.No.66ofNotificationNo.12/2017-CentralTax(Rate)dated28.06.2017andare
hence,exempt.
5. RegularizingpaymentofGSTontransportofpassengersbyhelicopter:
5.154
th
GSTCouncilhasrecommendedthattheGSTrateontransportationofpassengers,
withorwithoutaccompaniedbaggage,byair,inahelicopteronseatsharebasismaybe
notifiedat5%.Accordingly,notificationNo.07/2024-CentralTax(Rate)dated08.10.2024
effectivefrom10.10.2024hasbeenissued.
5.2TheCouncilfurtherrecommendedtoregularizepaymentofGSTontransportationof
passengers,withorwithoutaccompaniedbaggage,byair,inahelicopteronseatsharebasis
on‘asiswhereis’basis.
5.3Inadditiontoabove,theCouncilalsorecommendedtoclarifythatcharterof
helicopterwouldcontinuetoattractGSTattherateof18%.
5.4Thus,asrecommendedbythe54
th
GSTCouncil,paymentofGSTontransportationof
passengers,withorwithoutaccompaniedbaggage,byair,inahelicopteronseatsharebasis
isherebyregularizedon‘asiswhereis’basisfortheperiodfrom01.07.2017to09.10.2024.
5.5Further,asrecommendedbythe54
th
GSTCouncil,itisherebyclarifiedthattransport
ofpassengersbyhelicopteronotherthanseatsharebasisi.e.,forcharteroperationswill
continuetoattractGSTattherateof18%.
6. Whetherincidental/ancillaryservicessuchasloading/unloading,packing,
unpacking,transshipment,temporarywarehousingetc.,providedinrelationto
transportationofgoodsbyroadistobetreatedaspartofGoodsTransportAgency
service,beingcompositesupply,ortheseservicesaretobetreatedasseparate
independentsupplies:
6.1Representationshavebeenreceivedtoclarifywhetherincidental/ancillaryservices
suchasloading/unloading,packing,unpacking,transshipment,temporarywarehousingetc.,
providedinrelationtotransportationofgoodsbyroadistobetreatedaspartofGoods
TransportAgency(GTA)service,beingcompositesupply,ortheseservicesaretobetreated
asseparateindependentsupplies.
6.2Ithasbeenbroughttonoticethatenforcementagenciesareraisingdemandsforsuch
servicesholdingthemleviabletoGSTattherateof18%byinterpretinglastparaofQuestion
No.6oftheFAQissuedbyCBICwhichstatesthat“Ifsuchincidentalservicesareprovided
asseparateservicesandchargedseparately,whetherinthesameinvoiceorseparate
invoices,theyshallbetreatedasseparatesupplies”,tomeanthatifaGTAshowspacking
charges,loading,unloadingchargesetc.,separatelyintheinvoice,theGTAbecomesliableto
payGSTattherateof18%ontheseservicesbytreatingthemascargohandlingservices.
6.3Afterdeliberationsontheissueandbasedonrecommendationsofthe54
th
GST
Council,itisherebyclarifiedthatancillaryorincidentalservicesprovidedbyGTAinthe
courseoftransportationofgoodsbyroad,suchasloading/unloading,packing/unpacking,
transshipment,temporarywarehousingetc.willbetreatedascompositesupplyoftransportof
goods.ThemethodofinvoicingusedbyGTAswillnotgenerallyalterthenatureofthe
compositesupplyofservice.However,ifsuchservicesarenotprovidedinthecourseof
transportationofgoodsandareinvoicedseparately,thentheseserviceswillnotbetreatedas
compositesupplyoftransportofgoods.
7. RegularizingpaymentofGSTonimportofservicesbyanestablishmentofa
foreignairlinescompanyfromarelatedpersonoranyofitsestablishmentoutside
India,whenmadewithoutconsideration:
7.1 54
th
GSTCouncilhasrecommendedtoexemptimportofservicesbyan
establishmentofaforeignairlinescompanyfromarelatedpersonoranyofitsestablishment
outsideIndia,whenmadewithoutconsideration.Accordingly,notificationNo.
08/2024-IntegartedTax(Rate)dated08.10.2024effectivefrom10.10.2024hasbeenissued.
7.2TheCouncilfurtherrecommendedtoregularizepaymentofGSTonimportof
servicesbyanestablishmentofaforeignairlinescompanyfromarelatedpersonoranyofits
establishmentoutsideIndia,whenmadewithoutconsiderationforthepastperiodon‘asis
whereis’basis.
7.3Therefore,onrecommendationsofthe54
th
GSTCouncil,thepaymentofGSTon
importofservicesbyanestablishmentofaforeignairlinescompanyfromarelatedpersonor
anyofitsestablishmentoutsideIndia,whenmadewithoutconsiderationisherebyregularized
fortheperiodfrom01.07.2017to09.10.2024on‘asiswhereis’basis.
8. ApplicabilityofGSTonPreferentialLocationCharges(PLC)collectedalong
withconsiderationforsale/transferofresidential/commercialproperties:
8.1Allowingchoiceoflocationofapartmentisintegralpartofsupplyofconstruction
servicesandtherefore,locationchargeisnothingbutpartofconsiderationchargedforsupply
ofconstructionservicesbeforeissuanceofcompletioncertificate.Beingchargedalongwith
supplyofconstructionservicesfortheapartment,thesameattractGSTatsamerateasof
constructionservicesbeforeissuanceofcompletioncertificate.
8.2Therefore,basedontherecommendationsofthe54thGSTCouncil,itishereby
clarifiedthatlocationchargesorPreferentialLocationCharges(PLC)paidalongwiththe
considerationfortheconstructionservicesofresidential/commercial/industrialcomplex
formspartofcompositesupplywheresupplyofconstructionservicesisthemainserviceand
PLCisnaturallybundledwithitandareeligibleforsametaxtreatmentasthemainsupplyof
constructionservice.
9. RegularizingpaymentofGSToncertainsupportservicesprovidedbyan
electricitytransmissionordistributionutility:
9.1GSTCouncilinits54
th
meetingheldon09
th
September,2024hasrecommendedto
exemptsupplyofservicesbywayofprovidingmeteringequipmentonrent,testingfor
meters/transformers/capacitorsetc.,releasingelectricityconnection,shiftingof
meters/servicelines,issuingduplicatebillsetc.,whichareincidentalorancillarytothe
supplyoftransmissionanddistributionofelectricityprovidedbytransmissionand
distributionutilitiestotheirconsumers.
9.2ThesamehavebeenexemptedvidenotificationNo.08/2024-CentralTax(Rate)
dated08.10.2024effectivefrom10.10.2024.
9.3TheGSTCouncilinits54
th
meetinghasalsorecommendedtoregularizethepaymentof
GSTforsupplyofsuchservicesfortheperiodi.e.,from01.07.2017to09.10.2024on‘asis
whereis’basis.
9.4Therefore,asrecommendedbythe54
th
GSTCouncil,thepaymentofGSTonservices
providedbyanelectricitytransmissionordistributionutilitywhichareincidentalorancillary
tothesupplyoftransmissionanddistributionofelectricitybysuchutility,suchasthoselisted
inpara9.1aboveisherebyregularizedon‘asiswhereis’basisfrom01.07.2017to
09.10.2024.
10. RegularizingpaymentofGSTonservicesoffilmdistributorsor
sub-distributorswhoactonaprincipalbasistoacquireanddistributefilms:
10.1RepresentationshavebeenreceivedtoclarifyregardingtheGSTliabilityforthe
periodfrom01.07.2017to01.10.2021ontransactionbetweendistributorsandexhibitors
whereinthedistributorsgrantthetheatricalrightstotheexhibitioncenters.Fieldformations
haveviewedthatsuchtransactionareclassifiableunderSAC9996andattractsGSTatthe
rateof18%.
10.2Priorto1stOctober2021,GSTattherateof18%wasleviableon“MotionPicture,
videotapeandtelevisionprogrammedistributionservices”underHeading9996whereas12%
rateofGSTwasleviableon“temporaryorpermanenttransferorpermittingtheuseor
enjoymentofintellectualpropertyrightinrespectofgoodsotherthanITtechnology
software”underHeading9973.Itwasobservedthatbothentriesapparentlycoveredservices
bywayoflicensingofrightstobroadcastorshowfilms.Thisissuewasdiscussedinthe45th
GSTCouncilmeetingheldon17.09.2021wherein,theCouncilrecommendedtokeepa
uniformrateof18%onboththeseentrieswitheffectfrom01.10.2021.
10.3TheGSTCouncilinits54
th
meetingheldon09
th
September2024hasrecommended
toregularizethepaymentofGSTontransactionbetweendistributorsandexhibitorswherein
thedistributorsgrantthetheatricalrightstotheexhibitioncenterson‘asiswhereis’basis
from01.07.2017to30.09.2021.
10.4Therefore,asrecommendedbytheGSTCouncil,thepaymentofGSTontransaction
betweendistributorsandexhibitorswhereinthedistributorsgrantthetheatricalrightstothe
exhibitioncentersisregularizedfortheperiodfrom01.07.2017to30.09.2021on‘asiswhere
is’basis.
11.Difficulties,ifany,intheimplementationofthiscircularmaybebroughttothenoticeof
theBoard.
Yoursfaithfully,
(SachinJain)
JointSecretary,TRU-II
