𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗻 𝗚𝗦𝗧 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝘀 𝗽𝗲𝗿 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿 𝗡𝗼. 𝟮𝟯𝟰/𝟮𝟴/𝟮𝟬𝟮𝟰-𝗚𝗦𝗧 📢 The Ministry of Finance issued important clarifications based on the recommendations of the 54th GST Council meeting regarding the applicability of GST on certain services.

🔍 𝗞𝗲𝘆 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀: 𝗔𝗳𝗳𝗶𝗹𝗶𝗮𝘁𝗶𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗯𝘆 𝗨𝗻𝗶𝘃𝗲𝗿𝘀𝗶𝘁𝗶𝗲𝘀: 𝗜𝘀𝘀𝘂𝗲: GST applicability on affiliation services provided by universities to colleges. 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: Affiliation services provided by universities are taxable at 18%, as these services are not exempt under Notification No. 12/2017-CT(R).

𝗔𝗳𝗳𝗶𝗹𝗶𝗮𝘁𝗶𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗯𝘆 𝗘𝗱𝘂𝗰𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗕𝗼𝗮𝗿𝗱𝘀: 𝗜𝘀𝘀𝘂𝗲: Applicability of GST on affiliation services provided by Central/State educational boards to schools. 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: GST applies to affiliation services, except for services provided to government schools, which are exempt from 10th October 2024. Past services from 1st July 2017 to 17th June 2021 are regularized.

𝗙𝗹𝘆𝗶𝗻𝗴 𝗧𝗿𝗮𝗶𝗻𝗶𝗻𝗴 𝗖𝗼𝘂𝗿𝘀𝗲𝘀: 𝗜𝘀𝘀𝘂𝗲: GST on DGCA-approved flying training courses. 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: DGCA-approved flying training courses conducted by FTOs are exempt from GST under Notification No. 12/2017-CT(R).

𝗣𝗮𝘀𝘀𝗲𝗻𝗴𝗲𝗿 𝗧𝗿𝗮𝗻𝘀𝗽𝗼𝗿𝘁 𝗯𝘆 𝗛𝗲𝗹𝗶𝗰𝗼𝗽𝘁𝗲𝗿: 𝗜𝘀𝘀𝘂𝗲: GST rate on helicopter passenger transport. 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: GST is 5% for seat-sharing basis and 18% for charter services. Past liabilities are regularized from 1st July 2017 to 9th October 2024.

𝗚𝗼𝗼𝗱𝘀 𝗧𝗿𝗮𝗻𝘀𝗽𝗼𝗿𝘁 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀: 𝗜𝘀𝘀𝘂𝗲: Treatment of incidental services like loading/unloading in goods transport. 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: Incidental services are part of composite supply of transport services and taxable accordingly, unless billed separately.

𝗜𝗺𝗽𝗼𝗿𝘁 𝗼𝗳 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗯𝘆 𝗙𝗼𝗿𝗲𝗶𝗴𝗻 𝗔𝗶𝗿𝗹𝗶𝗻𝗲𝘀: Issue: GST on import of services by foreign airlines from related persons. Clarification: Exempt when provided without consideration. Past liabilities are regularized from 1st July 2017 to 9th October 2024.

📜 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿 𝗡𝗼.: 234/28/2024-GST 𝗗𝗮𝘁𝗲: 11th October 2024 𝗦𝗼𝘂𝗿𝗰𝗲: Ministry of Finance, Government of India

This clarification resolves several long-standing issues related to GST on affiliation services, transport, flying training, and import of services, ensuring better compliance and reducing ambiguities in interpretation.