Important Keyword: Notification No. 19/2023 - Integrated Tax (Rate), omnibus GST rule, GST amendment 2023, electronic commerce operator, GST on passenger transport, CGST update, Finodha GST,
Words: 893; Read time: 5 minutes.
Table of Contents
[F. No. CBIC-190354/195/2023-TO (TRU-II)-CBEC]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, 19th October 2023
Notification No. 19/2023 - Integrated Tax (Rate): Seeks to Amend Notification No 14/2017- Integrated Tax (Rate) Dated 28.06.2017.
[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUBSECTION (i)]
G.S.R......(E).-In exercise of the powers conferred by sub-section (5) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments further to amend the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.14/2017-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. 689(E) dated the 28th June, 2017, namely:-
In the said notification,
(i.) in clause (i), for the words “omnibus or any other motor vehicle”, the words “or any other motor vehicle except omnibus” shall be substituted;
(ii.) after clause (i), the following clause shall be inserted, namely: -
“(ia) services by way of transportation of passengers by an omnibus except where the person supplying such service through electronic commerce operator is a company.”;
(iii.)in the Explanation to the notification, after item (c), the following item shall be inserted, namely, -
“(d) “Company” has the same meaning as assigned to it in clause (20) of section 2 of the Companies Act, 2013(18 of 2023).”.
2. This notification shall come into force with effect from the 20th day of October 2023.
(Rajeev Ranjan)
Under Secretary to the Government of India
Note: - The principal notification No. 14/2017 –Integrated Tax (Rate), dated the 28th of June 2017, vide number G.S.R. 689(E), dated the 28th of June 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) and was last amended by notification No. 17/2021 –Integrated Tax (Rate) dated the 18th November 2021 vide number G.S.R. 814(E), dated the 18th November 2021.
📚 Frequently Asked Questions (FAQs): Notification No. 19/2023 - Integrated Tax (Rate)
Q1: What is Notification No. 19/2023 – Integrated Tax (Rate) about?
Answer:
This notification amends the original Notification No. 14/2017 to revise GST treatment for passenger transport services via omnibus and other motor vehicles. The revised notification distinguishes GST applicability for services provided through e-commerce platforms when offered by companies.
Q2: What specific amendment was made to clause (i)?
Answer:
The words “omnibus or any other motor vehicle” are replaced with “or any other motor vehicle except omnibus.” This means services by omnibus are now dealt with separately under a new clause.
Q3: What is the newly inserted clause (ia)?
Answer:
Clause (ia) introduces: "services by way of transportation of passengers by an omnibus except where the person supplying such service through electronic commerce operator is a company." In simple words, GST applies if a company provides omnibus services via online platforms.
Q4: How is "Company" defined under this notification?
Answer:
As per the added explanation, “Company” refers to its definition under Section 2(20) of the Companies Act, 2013.
Q5: From when is Notification No. 19/2023 effective?
Answer:
This notification is effective from 20th October 2023.
Q6: Who does this impact the most?
Answer:
🚍 Omnibus operators
💻 Online travel aggregators/e-commerce platforms
🏢 Companies offering public transport services via apps
👨💼 GST professionals advising transport service providers
Q7: Do non-company operators offering omnibus transport via apps also need to pay GST?
Answer:
No, as per this amendment, if a non-company individual or entity provides omnibus transport via an e-commerce operator, GST will not apply under the newly inserted clause (ia). Only companies are covered under the GST charge in this case.
Q8: What steps should businesses take post-notification?
Answer:
✅ Verify your business status (company or non-company)
✅ Assess if your services fall under “omnibus passenger transport”
✅ Ensure compliance with GST filing via this Finodha GST Return Portal: https://finodha.in/gst-return-filing/
✅ For professional assistance, consult GST experts: www.Finodha.in
🧠 Pro Tip:
If you are registering or updating your GST profile in light of this amendment, Finodha’s GST Registration service is here: https://finodha.in/online-gst-registration/
📌 Summary:
Notification No. 19/2023 – Integrated Tax (Rate) is a targeted amendment clarifying GST implications on omnibus passenger transport. The key focus is on distinguishing the GST liability between companies and non-company operators when using electronic commerce platforms. Effective from 20 October 2023, this impacts public transport and aggregator platforms significantly.
Download PDF: Notification No. 19/2023 - Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
Read more interesting articles:
