Concessional GST rate of 5% on supply of scientific and technical equipments rescinded

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Background:

Earlier, the CBIC issued Notification No. 45/2017-Central Tax (Rate) dated November 14, 2017 (“NN. 45/CT(R)”) to provide concessional GST rate of 2.5% on scientific and technical equipments supplied to public funded research institutions, departments and laboratories of the central government and state government, cancer institute and research institution, other than a hospital.

Further, the GST Council’s 47th meeting was held in Chandigarh on June 28-29, 2022 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman, wherein, recommendations were made to rationalize the exemption in form of a concessional rate of GST w.e.f. July 18, 2022.

Accordingly, the recommendation has been notified vide following notification:

Notification:

The CBIC vide Notification No. 11/2022-Central Tax (Rate) dated July 13, 2022 has rescinded NN. 45/CT(R) to change the concessional GST rate of 5% (2.5% each CGST and SGST or 5% IGST) on scientific and technical equipments to rate applicable on such scientific and technical equipments w.e.f. July 18, 2022.

Similar notifications have been passed under the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”) and the Union Territory Goods and Services Tax Act, 2017 (“the UTGST Act”).

CGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009441/ENG/Notifications

IGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009461/ENG/Notifications

UTGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009449/ENG/Notifications

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