Central Board of Indirect Taxes and Customs (CBIC) via Circular No 206/18/2023-GST has issued clarification regarding applicability of Goods and Services Tax (GST) on the following services as mentioned below.
- Any job work services provided in relation to conversion of barley into malt will be considered as food and food products falling under customs tariff and hence it will attract 5% GST irrespective of the end use of the products.
- Applicability of GST on the reimbursement of electricity charges received by real estate companies, malls, and airport operators from their lessees or occupants. It has been clarified that when electricity is supplied bundled with renting of immovable property and/or maintenance of premises, it constitutes a composite supply. Supply of electricity is considered as an ancillary supply to the principal supply of renting of immovable property and/or maintenance of premise. Hence GST will be getting attracted at the rate of principal supply i.e @18%. Even if electricity is billed separately, the supplies will constitute a composite supply and GST will be charged similar to the abovementioned rate.
- Any supply of pure services and composite supplies by way of horticulture/horticulture works (where the value of goods constitutes not more than 25% of the total value of supply) made to CPWD are exempted from GST.
Source: Central Board of Indirect taxes and Customs (CBIC)
