Notification No. 14/2018 – Integrated Tax (Rate) Explained

Important Keyword: Notification 14/2018 IGST, amendment to 8/2017 IGST, restaurant GST rate 2018, e-book GST rate India, multimodal transport GST rate, event catering GST 18%, IGST service rate changes 2018

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[F. No.354/13/2018-TRU]
Government of India
Ministry of Finance
(Department of Revenue)

New Delhi, the 26^th July, 2018

Notification No. 14/2018 - Integrated Tax (Rate): 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 28th meeting held on 21.07.2018.

GST: [TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R       (E).- In exercise of the powers conferred by sub-section (1) of section 5, sub- section (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 sub- section (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 28^th June, 2017, namely:-

In the said notification, in the Table, -

• against serial number 7, in column (3),-

• for item (i) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: -

(3)	(4)	(5)
“(i) Supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent.   Explanation 1.- This item includes such supply at a canteen, mess, cafeteria or dining space of an institution such as a school, college, hospital, industrial unit, office, by such institution or by any other person based on a contractual arrangement with such institution for such supply, provided that such supply is not event based or occasional. Explanation 2.- This entry excludes the supplies covered under the item 7 (v). Explanation 3.- “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.	5	Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)]
(ia) 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.	5	Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)]”;

• in items (ii), (vi) and (viii),-
  • for the words “declared tariff” wherever they occur, the words “value of supply” shall be substituted;
  • the Explanation shall be omitted;

• for item (v) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: -

(3)	(4)	(5)
“(v) Supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, at Exhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event based and occasional in nature.	18	-”;

• against serial number 9, for item (vi) in column (3) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: -

(3)	(4)	(5)
“(vi) Multimodal transportation of goods.   Explanation.- (a) “multimodal transportation” means carriage of goods, by at least two different modes of transport from the place of acceptance of goods to the place of delivery of goods by a multimodal transporter; “mode of transport” means carriage of goods by road, air, rail, inland waterways or sea;“ multimodal transporter” means a person who,-enters into a contract under which he undertakes to perform multimodal transportation against freight; and acts as principal, and not as an agent either of the consignor, or consignee or of the carrier participating in the multimodal transportation and who assumes responsibility for the performance of the said contract.	12	-
(vii) Goods transport services other than (i), (ii), (iii), (iv), (v) and (vi) above.	18	-”;

• for serial number 22 and the entries relating thereto, the following shall be substituted, namely: -

(1)	(2)	(3)	(4)	(5)
“22	Heading 9984 (Telecommunications, broadcasting and information supply services)	(i)        Supply consisting only of e-book Explanation.- For the purposes of this notification, “e-books” means an electronic version of a printed book (falling under tariff item 4901 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)) supplied online which can be read on a computer or a hand held device. (ii) Telecommunications, broadcasting and information supply services other than (i) above	5 18	- -”;

2. This notification shall come into force with effect from 27^th of July, 2018.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

Note: - The principal notification No. 8/2017 - Integrated Tax (Rate), dated the 28^th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 683 (E), dated the 28^th June, 2017 and was last amended by notification No. 1/2018-Integrated Tax (Rate), dated the 25^th January, 2018 vide number G.S.R. 69 (E), dated the 25^th January, 2018.

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📚 Frequently Asked Questions (FAQs): Notification No. 14/2018 – Integrated Tax (Rate)

🏁 Conclusion

Notification No. 14/2018 – Integrated Tax (Rate) brought significant changes to IGST rates on restaurant services, catering, transport and e-books, impacting hospitality, logistics and digital sectors.

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More Information: https://taxinformation.cbic.gov.in/

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