Government Amends Integrated Tax Rates for Services: Key Highlights
Amendment Scope:
G.S.R. (E) exercises powers under the Integrated Goods and Services Tax Act, 2017, amending rates specified in the notification (No.10/2017-Integrated Tax).
Change in Entry 2:
Supplier exclusion from 12% integrated tax if registration obtained under CGST Act with forward charge option for GTA services. Tax invoice and prescribed declaration required.
Modification in Entry 6:
Omission of certain services in sub-clause (2) related to speed post, express parcel post, life insurance, and agency services not involving Central Government, State Government, Union territory, or local authority.
Addition of Entry 6AA:
Introduction of service tax for renting residential dwelling to a registered person. Applicable to any person renting to a registered individual.
Inclusion of Declaration:
Annexure III introduces a declaration for suppliers who opted for forward charge on GTA services, enhancing compliance.
Effective Date:
The amendments take effect from July 18, 2022, aligning with the government's ongoing efforts to refine tax structures.
Transparent Tax Governance:
These changes showcase the government's commitment to transparent and effective tax governance, aiming to simplify processes and enhance compliance.
Note: The amendments reflect the government's dynamic approach to adjusting tax rates for services under the integrated tax framework.