CBIC notify certain services u/s 9(3) of RCM as recommended by GST Council in its 37th Meeting

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The CBIC vide Notification No. 22/2019- Central Tax (Rate) dated September 30, 2019, in order to give effect to the recommendations made by GST Council in their 37th meeting, further amended the Notification No. 13/2017- Central Tax (Rate) dated June 28, 2017, in the following manner, discussed as hereunder:-

Sl. No.

Category of Supply of Services Supplier of service

Recipient of Service

(i) For Serial Number 9 and the entries relating thereto, the following shall be substituted, namely: –

“9

Supply of services by a music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original dramatic, musical or artistic works to a music company, producer or the like.

Music composer, photographer, artist, or the like

The music company, producer or the like, located in the taxable territory. ”;

(ii) After Serial Number 9 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –

9A

Supply of services by an author by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of subsection (1) of section 13 of the Copyright Act, 1957 relating to original literary works to a publisher.

Author

Publisher located in the taxable territory:-

Provided that nothing contained in this entry shall apply where:-

(i) the author has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017), and filed a declaration, in the form at Annexure I, within the time limit prescribed therein, with the jurisdictional CGST or SGST commissioner, as the case may be, that he exercises the option to pay central tax on the service specified in column (2), under forward charge in accordance with Section 9 (1) of the Central Goods and Service Tax Act, 2017 under forward charge, and to comply with all the provisions of Central Goods and Service Tax Act, 2017 (12 of 2017) as they apply to a person liable for paying the tax in relation to the supply of any goods or services or both and that he shall not withdraw the said option within a period of 1 year from the date of exercising such option;

(ii) the author makes a declaration, as prescribed in Annexure-II on the invoice issued by him in Form GST Inv-I to the publisher. ”;

(iii) After serial number 14 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: –

15

Services provided by way of renting of a motor vehicle provided to a body corporate.

Any person other than a body corporate, paying central tax at the rate of 2.5% on renting of motor vehicles with input tax credit only of input service in the same line of business.

Any body corporate located in the taxable territory.

16

Services of lending of securities under Securities Lending Scheme, 1997 (“Scheme”) of Securities and Exchange Board of India (“SEBI”), as amended.

Lender i.e. a person who deposits the securities registered in his name or in the name of any other person duly authorized on his behalf with an approved intermediary for the purpose of lending under the Scheme of SEBI.

Borrower i.e. a person who borrows the securities under the Scheme through an approved intermediary of SEBI.”.

Note:

  1. This notification shall come into force on October 01, 2019.
  2. Similar Notifications has been issued under the IGST act and UTGST Act vide Notification No. 21/2019- Integrated Tax (Rate) and Notification No. 22/2019- Union Territory Tax (Rate) both dated September 30, 2019.

The Complete Notification can be at: http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-22-2019-cgst-rate-english.pdf;jsessionid=C494A70E9A2AF2D250E2521E8E3D79D3

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