GST Amendments: Changes in Tax Rates and Residential Dwelling Services

Government's Decision: G.S.R. (E) invokes powers under CGST Act, 2017, to amend notification No.13/2017-Central Tax (Rate), dated 28th June 2017.

Alterations in Serial Number 1: Removal of the clause "who has not paid central tax at the rate of 6%" from serial number 1 in column (2). Inclusion of a new proviso ensuring certain conditions for exemption, such as supplier registration and issuance of tax invoice.

Modifications in Serial Number 5: Exclusion of the words "by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government, State Government or Union territory or local authority" from sub-clause (2), item (i) of serial number 5.

Introduction of Serial Number 5AA: Addition of a new entry - 5AA: "Service by way of renting of residential dwelling to a registered person."

Effective Date: The changes take effect from a specified date as per the notification.

Clarification on Residential Dwelling Services: The new entry 5AA outlines that services related to renting residential dwellings to registered persons will be subject to the revised tax rates.

Objective: The amendments aim to refine tax provisions, ensuring clarity and alignment with the evolving economic landscape.

Note: Businesses providing services affected by these changes need to incorporate them into their tax compliance strategies and pricing structures.