Taxmann’s Analysis of the GST Rates and Exemption notifications based on the 45th GST Council Meeting

Contents

A. Changes relating to GST rate of Services.

1. GST rate of Permanent transfer or temporary use of IPRs increased to 18%
2. Specific GST rate of 18% for manufacture of alcoholic liquor
3. GST rate on printing where paper belongs to printer increased to 18%
4. Admission to Casinos, race clubs, etc. taxed at 28%
5. Specific HSN provided for multimodal transportation for indigenous transport

B. Changes relating to Exemption of Services.

1. Extending various exemptions to Trust/institutions registered under Section 12AB of IT Act
2. Exemption relating to Fédération Internationale de Football Association (FIFA)
3. Exemption to Asian Football Confederation (AFC)
4. Extension of exemption on transportation services by Air/Vessel for export cargo
5. Exemption on service of leasing of assets by IRFC withdrawn.
6. Service of granting the National Permit to Goods Carriage agencies is exempted from GST
7. Training services exempt where Government bears 75% or more expenditure

C. Changes relating to GST rate of Goods.

1. Tamarind Seeds for uses other than sowing attract GST @5% from October 1, 2021
2. Increase in the GST rate of Iron ore, copper ore etc. from 5% to 18%
3. Bio-diesel supplied to OMC companies for blending with diesel subject to 5% GST
4. Increase in GST rate of waste of plastics from 5% to 18%
5. GST rates on specified renewable energy devices and its parts increased from 5% to 12%
6. Rate reduced on Medicine Keytruda for treatment of cancer.
7. Reduction in GST rate of Retro fitment kits
8. GST Rate of Carton, boxes, cases, etc. increased from 12% to 18%
9. GST Rate of architectural drawings, calendars, etc. increased from 12% to 18%
10. GST Rate of rail locomotives, etc. increased from 12% to 18%
11. GST Rate of pen & specified stationery items increased from 12% to 18%
12. Specific tax rate provided for Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice
13. GST exemption/concession for specified medicines
14. Concessional rate for fortified rice kernels for schemes like ICDS

D. Changes relating to Reverse Charge on Services.

1. RCM on Mentha oil purchased from unregistered person

E. Changes notified for exemption notifications under Customs laws.

1. BCD exemption for import of Covid-19 Vaccines
2. Exemption from IGST on imports from Antarctica and Bangladesh
3. Exemption from Custom duties and IGST on import of few life-saving drugs
4. Relaxation has been provided for the condition of re-export of goods

A. Introduction

In continuation to decisions taken by the GST Council in its 45th meeting, the Government on September 30, 2021 has notified various rate and exemption notifications under the GST and Customs laws. In this document, we have discussed these notifications and its implications.

B. Changes relating to GST rate of Services

Notification No. 06/2021 – Central Tax (Rate), Dated 30-09-2021

1. GST rate of Permanent transfer or temporary use of IPRs increased to 18%

Sl. No. (i) (b) of Notification No. 06/2021 – Central Tax (Rate), Dated 30-09-2021

• • GST rate on temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) rights (other than IT Software) has been increased from 12% to 18%

TAXMANN’s Comments:

The amendment would have impact on all IPR related transactions such as Publishers dealing with Authors, Temporary licence to use Process technology, Royalty payments by Auto OEMs under JVs, M&A deals relating to brand transfers, etc.

There exists several judgments under the erstwhile Indirect Tax laws, where the permanent transfer of IPRs were held as goods. Taking cognizance of the fact that dispute may arise regarding the classification of the permanent transfer of IPRs under GST, the Government, prior to this amendment, provided the same description under the tariff notification relating to goods as well as services. We can understand the same from a comparative table given below:

Description under rate notification for Goods	Description under rate notification for Services	GST Rate
Permanent transfer of Intellectual Property (IP) right in respect of goods ‘other than Information Technology software’	Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of goods other than Information Technology software	12%
Permanent transfer of Intellectual Property (IP) right in respect of ‘Information Technology software’	Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of Information Technology software	18%

Now, the amendment has only been made to increase the GST rate from 12% to 18% under service tariff notification. No such amendment has been made in the rate notification related to Goods. This would invite litigations as one may argue that permanent transfer of IPRs qualify as goods and thus applicable GST would be 12%.

2. Specific GST rate of 18% for manufacture of alcoholic liquor

Sl. No. (i) (c) of Notification No. 06/2021 – Central Tax (Rate), Dated 30-09-2021

• • GST rate on services by way of job work in relation to manufacture of alcoholic liquor for human consumption has specifically been provided as 18%

TAXMANN’s comments:

The insertion of a specific rate of 18% in the service tariff notification with effect from October 01, 2021 would end the any further confusions relating to availability of 5% GST. Prior to insertion of specific entry in the amendment, there was a prevalent position that alcohol is equivalent to food and food products hence job work services relating to same are taxable at 5%.

Notably, the Council decision that clarification would be issued to provide that GST rate of 5% would ‘not’ be applicable on Contract Bottling Units (CBU) activity for past period is still awaited. The clarification would be a setback for the liquor manufacturers and would invite litigation as DGGI has already issued summons etc. to these companies.

3. GST rate on printing where paper belongs to printer increased to 18%

Sl. No. (i) (d) of Notification No. 06/2021 – Central Tax (Rate), Dated 30-09-2021

GST rate on printing of all goods falling under Chapter 48 or 49 [including newspapers, books (including Braille books), journals and periodicals], which attract 12 % or 5 % or NIL GST, where only the content is supplied by the publisher and the physical inputs including ink, paper used for printing belongs to the printer, has been increased from 12% to 18%

TAXMANN’s Comments:

The job work services are continued to be taxed at 5%. Therefore, where the paper is supplied by the publisher to the printer (registered or unregistered), the GST rate would be 5%. The increase in GST rate from 12% to 18% would be cost to the publishers wherever the final books are exempt.

4. Admission to Casinos, race clubs, etc. taxed at 28%

Sl. No. (i) (e) of Notification No. 06/2021 – Central Tax (Rate), Dated 30-09-2021

• • Amendment has been made in the service tariff notification to provide specifically that admission to theme parks, water parks, joy rides, merry-go rounds, go carting or ballet attracts GST rate of 18%. The GST rate of 28% applies only to admission to casinos or race clubs or sporting events like Indian Premier League

5. Specific HSN provided for multimodal transportation for indigenous transport

Sl. No. (ii) of Notification No. 06/2021 – Central Tax (Rate), Dated 30-09-2021

• • Amendment has been made in the service tariff notification to provide the six digit HSN (e. 996541) for the multimodal transport of goods from a place in India to another place in India

C. Changes relating to Exemption of Services

Notification No. 07/2021 – Central Tax (Rate), Dated 30-09-2021

6. Extending various exemptions to Trust/institutions registered under Section 12AB of IT Act

Sl No. – (i) (a) of Notification No. 06/2021 – Central Tax (Rate), Dated 30-09-2021 & Sl No. – (i), (iv) & (ix) of Notification No. 07/2021 – Central Tax (Rate), Dated 30-09-2021

• • Various exemptions, concessional rates is made available to trusts registered under newly introduced Section 12AB of Income Tax Act, 1961 (‘IT Act’)

TAXMANN’s Comments:

A trust or institution can claim exemption under Sections 11 and 12 of the IT Act if it is registered with the Commissioner of Income-tax. The process of registration of such Trust/institution up to March 31, 2021 was governed by Section 12AA of the IT Act. With effect from April 1, 2021, a new Section 12AB was inserted in IT Act which lays down the new process to obtain registration and the period for which such registration shall be granted.

Under the GST law, currently relief has been provided to various Trust or Institutions, etc., registered under Section 12AA of the IT Act, by way of providing concessional rate of taxes or exemptions in certain cases. With the introduction of the new Section 12AB, corresponding amendments have been made in respective Notification under GST law.

Further, there seems a miss out relating to extending exemption of import of services to entities registered under Section 12AB.

7. Exemption relating to Fédération Internationale de Football Association (FIFA)

Sl. No. (ii) of Notification No. 07/2021 – Central Tax (Rate), Dated 30-09-2021

• • GST exemption relating to FIFA would be available whenever it is rescheduled.

TAXMANN’s Comments:

Services provided by and to Fédération Internationale de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020 are currently exempt from GST.

Due to the Covid related restrictions and the Lockdown situations in the Country, such event was cancelled and postponed to the year 2022. Consequent to this, the exemption entry has also been changed.

8. Exemption to Asian Football Confederation (AFC)

Sl. No. (iii) & (x) of Notification No. 07/2021 – Central Tax (Rate), Dated 30-09-2021

• • Services provided by and to Asian Football Confederation (AFC) and its subsidiaries directly or indirectly related to any of the events under AFC Women’s World Cup 2022 to be hosted in India are exempt[1] from GST.
  • In this regard, the Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of such events.
  • Further, the entry tickets relating to admission to such events are also exempted from the GST.

9. Extension of exemption on transportation services by Air/Vessel for export cargo

Sl. No. (v) of Notification No. 07/2021 – Central Tax (Rate), Dated 30-09-2021

• • Existing exemption of transportation of goods by air/ vessel for export cargo has further been extended by one more year till September 30, 2022.

TAXMANN’s Comments:

The place of supply of services of transportation of goods from India to outside India by a vessel or aircraft to the registered person is location of recipient of services[2] (i.e. India). In order to avoid taxation on transportation services suffered by the goods exported outside India, the existing exemption[3] has further been extended till September 30, 2022.

10. Exemption on service of leasing of assets by IRFC withdrawn

Sl. No. (vi) of Notification No. 07/2021 – Central Tax (Rate), Dated 30-09-2021

• • Service of leasing of assets (rolling stock assets including wagons, coaches and locos) by the Indian Railways Finance Corporation (IRFC) to Indian Railways has been withdrawn.

11. Service of granting the National Permit to Goods Carriage agencies is exempted from GST

Sl. No. (vii) of Notification No. 07/2021 – Central Tax (Rate), Dated 30-09-2021

• • Exemption from GST has been provided to the services of granting the National Permit to a goods carriage to operate through-out India/ contiguous States.

TAXMANN’s comments:

Regional Transport Authority grants the national permit to the owner of the goods carriage and charges fees for the same. Currently, these services are subject to GST under reverse charge. After the amendment, the owner of vehicle paying permit fees are not required to pay GST.

12. Training services exempt where Government bears 75% or more expenditure

Sl. No. (viii) of Notification No. 07/2021 – Central Tax (Rate), Dated 30-09-2021

• • The skill training institutes providing training program for which total expenditure is borne by the Government are currently exempt¹² from GST. The scope of exemption has been increased toall those cases where 75% or more expense is borne by the Government.

D. Changes relating to GST rate of Goods

Notification No. 08/2021 – Central Tax (Rate), Dated 30-09-2021, Notification No. 09/2021 – Central Tax (Rate), Dated 30-09-2021 and Notification no 11/2021- Central Tax (Rate), Dated 30-09-2021

13. Tamarind Seeds for uses other than sowing attract GST @5% from October 1, 2021

Sl. No. (a) (i) of Notification No. 08/2021 – Central Tax (Rate), Dated 30-09-2021 & Notification No. 09/2021 – Central Tax (Rate), Dated 30-09-2021

• • Specific 5% GST rate has been notified for supply of Tamarind seeds meant for any use other than sowing.

• • Further, an explanation has also been inserted in the exemption relating to ‘seeds, fruit and spores, of a kind used for sowing’ to provide that the given exemption would not be applicable for seeds meant for any used other than sowing.

TAXMANN’s Comments:

The clarity on the manner of claiming exemption for tamarind seeds used for sowing purposes should be provided as the authorities may deny exemption to dealers unless they prove that seeds are used for sowing purposes. The end use may not be in the hands of the dealers and thus the same cannot be substantiated.

Further, the clarification, as recommended by GST Council in its 45^th meeting, that till September 30, 2021, tamarind seeds would be exempt irrespective of its use and therefore, would attract nil rate is awaited.

14. Increase in the GST rate of Iron ore, copper ore etc. from 5% to 18%

Sl. No. (a) (ii) & (c) (i) of Notification No. 08/2021 – Central Tax (Rate), Dated 30-09-2021

• • GST on following Ores and concentrates of metal has been increased from 5% to 18%:

Sl. No.	Particulars
1.	Iron ores and concentrates, including roasted iron pyrites
2.	Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20% or more, calculated on the dry weight
3.	Copper ores and concentrates.
4.	Nickel ores and concentrates.
5.	Cobalt ores and concentrates.
6.	Aluminium ores and concentrates.
7.	Lead ores and concentrates.
8.	Zinc ores and concentrates.
9.	Tin ores and concentrates.
10.	Chromium ores and concentrates

TAXMANN’s Comments:

Miners pay 18% GST for mining services, while the GST on processed output (say iron ore) is subject to 5% GST. This rate difference has created inversion duty structure for the mining companies. The increase in the GST rate would remove the anomaly of inverted duty structure and hence is a welcome step.

15. Bio-diesel supplied to OMC companies for blending with diesel subject to 5% GST

Sl. No. (a) (iii) & (b) (i) of Notification No. 08/2021 – Central Tax (Rate), Dated 30-09-2021

• • The GST rate on supply of biodiesel to OMC companies for blending with HSD has been reduced from 12% to 5%.

TAXMANN’s Comments:

The rate reduction is a welcome step but it may not have much impact on the OMCs and Biodiesel suppliers as currently less than .01% of available biodiesel is blended into diesel in India. The rate reduction may be a step to boost such blending activities. The supply of bio-diesel other than for other purposes would continue to be taxed at 12%.

16. Increase in GST rate of waste of plastics from 5% to 18%

Sl. No. (a) (iv) & (c) (i) of Notification No. 08/2021 – Central Tax (Rate), Dated 30-09-2021

• • The GST rate on waste, parings and scrap of plastics classifiable under heading 3915 has been increased from 5% to 18%.

17. GST rates on specified renewable energy devices and its parts increased from 5% to 12%

Sl. No. (i) (f) of Notification No. 06/2021 – Central Tax (Rate), Dated 30-09-2021 & Sl. No. (b) (iv) & (a) (v) of Notification No. 08/2021 – Central Tax (Rate), Dated 30-09-2021

• • The GST rate on the following renewable energy devices and parts of their manufacture has been increased from 5% to 12%.

Sl. No.	Device/Part
1.	Bio-gas plant
2.	Solar power based devices
3.	Solar power generator
4.	Wind mills, Wind Operated Electricity Generator (WOEG)
5.	Waste to energy plants/devices
6.	Solar lantern/Solar Lamp
7.	Ocean Waves/tidal waves energy devices/plants
8.	Photo voltaic cells, whether or not assembled in modules or made up into panels

 TAXMANN’s Comments:

Prior to the above amendment, 70% of the gross value of the contract which is considered for the supply of goods, attracted 5% GST rate and remaining 30% which is treated as supply of services was  subject to GST at the rate of 18%. Thus, the effective rate for the industry was 8.9%. With the increase in the GST rate from 5% to 12%, the effective rate would be 13.8%. Therefore, the excess rate would be 4.9%.

Further, in order to provide relief for the period July 1, 2017 to December 31, 2018, the GST Council in its 45^th meeting has recommended a clarification that explanation in the rate notifications deeming 70% of contract value as supply of goods and remaining 30% being supply of services, would be applicable retrospectively is awaited.

18. Rate reduced on Medicine Keytruda for treatment of cancer

Sl. No. (a) (vi) of Notification No. 08/2021 – Central Tax (Rate), Dated 30-09-2021

• • GST rate on medicine Keytruda for treatment of cancer has been reduced to 5%

19. Reduction in GST rate of Retro fitment kits

Sl. No. (a) (vii) of Notification No. 08/2021 – Central Tax (Rate), Dated 30-09-2021

• • GST rate on Retro fitments kits for vehicles used by the disabled reduced to 5%

TAXMANN’s Comments:

The two wheelers attract GST at the rate of 28%. While after rate reduction, the said kits would attract GST at the rate of 5%. The dealers engaged in supply of two wheelers attaching the retro fitment kits would need to be cautioned on the manner of supply and billing for availing the benefit of lower GST rate. The already attached kits with two wheelers would be subject to GST rate as applicable on two wheelers[4] as such supply would be a composite goods under Customs Tariff Act.

Where the kits are attached with two wheelers on a special request of the customer, such supply of kits may also attract GST at the rate of 28%, if such composition qualifies as composite supply under GST. Therefore, manner of supply and billing would be an important factor in this case to avail the benefit of lower GST rate.

20. GST Rate of Carton, boxes, cases, etc. increased from 12% to 18%

Sl. No. (b) (ii) & (c) (iii) of Notification No. 08/2021 – Central Tax (Rate), Dated 30-09-2021

• • GST rate on the following items has been increased from 12% to 18%:

Sl. No.	Heading	Description of Goods
153A	4819	Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres; box files, letter trays, and similar articles, of paper or paperboard of a kind used in offices, shops or the like

21. GST Rate of architectural drawings, calendars, etc. increased from 12% to 18%

Sl. No. (b) (iii) & Sl. No. (c) (iv) of Notification No. 08/2021 – Central Tax (Rate), Dated 30-09-2021

• • GST rate on the following items has been increased from 12% to 18%:

Sl. No.	Heading	Description of Goods
157A	4906 00 00	Plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, being originals drawn by hand; hand-written texts; photographic reproductions on sensitised paper and carbon copies of the foregoing.
157B	4907	Unused postage, revenue or similar stamps of current or new issue in the country in which they have, or will have, a recognised face value; stamp-impressed paper; banknotes; cheque forms; stock, share or bond certificates and similar documents of title (other than Duty Credit Scrips)
157C	4908	Transfers (decalcomanias).
157D	4909	Printed or illustrated postcards; printed cards bearing personal greetings, messages or announcements, whether or not illustrated, with or without envelopes or trimmings.
157E	4910	Calendars of any kind, printed, including calendar blocks.
157F	4911	Other printed matter, including printed pictures and photographs; such as Trade advertising material, Commercial catalogues and the like, printed Posters, Commercial catalogues, Printed inlay cards, Pictures, designs and photographs, Plan and drawings for architectural engineering, industrial, commercial, topographical or similar purposes reproduced with the aid of computer or any other devices.

22. GST Rate of rail locomotives, etc. increased from 12% to 18%

Sl. No. (b) (v) & (c) (v) of Notification No. 08/2021 – Central Tax (Rate), Dated 30-09-2021

• • GST rate on the following items has been increased from 12% to 18%:

Sl. No.	Chapter, Heading, Subheading or Tariff item	Description of Goods
398A	8601	Rail locomotives powered from an external source of electricity or by electric accumulators.
398B	8602	Other rail locomotives; locomotive tenders; such as Diesel electric locomotives, Steam locomotives and tenders thereof
398C	8603	Self-propelled railway or tramway coaches, vans and trucks, other than those of heading8604.
398D	8604	Railway or tramway maintenance or service vehicles, whether or not self-propelled (for example, workshops, cranes, ballast tampers, track liners, testing coaches and track inspection vehicles).
398E	8605	Railway or tramway passenger coaches, not self-propelled; luggage vans, post office coaches and other special purpose railway or tramway coaches, not self-propelled (excluding those of heading 8604).
398F	8606	Railway or tramway goods vans and wagons, not self-propelled.
398G	8607	Parts of railway or tramway locomotives or rolling-stock; such as Bogies, bissel-bogies, axles and wheels, and parts thereof.
398H	8608	Railway or tramway track fixtures and fittings; mechanical (including electro-mechanical) signalling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields; parts of the foregoing.

23. GST Rate of pen & specified stationery items increased from 12% to 18%

Sl. No. (b) (vi) & (c) (vi) of Notification No. 08/2021 – Central Tax (Rate), Dated 30-09-2021

• • GST rate on the following items has been increased from 12% to 18%:

Ball point pens; felt tipped and other porous-tipped pens and markers; fountain pens; stylograph pens and other pens; duplicating stylos; pen holders, pencil holders and similar holders; parts (including caps and clips) of the foregoing articles, other than those of heading 9609

24. Specific tax rate provided for Carbonated Beverages of Fruit Drink or Carbonated Beverages with Fruit Juice

Sl. No. (d) (i) of Notification No. 08/2021 – Central Tax (Rate), Dated 30-09-2021 &

Notification No. 01/2021 – Compensation Cess (Rate), Dated 30-09-2021

• GST tariff notification amended to provide the specific GST rate of 28% (along with Compensation Cess of 12%) on carbonated beverages of Fruit Drink or Carbonated Beverages with fruit drink

TAXMANN’s Comments:

The issue whether to classify the impugned goods under Tariff Heading 2202 10 with GST rate of 28%+12% cess or Tariff Heading 2202 99 20 with GST rate of 12% may not be relevant after October 01, 2021 as rate notification amended to provide the specific rate in this regard.

However, the litigation for the past period would continue as companies have paid GST at the rate of 12/18% on the impugned product. The judgment of the Hon’ble Supreme Court in case of Parle Agro[5] and CESTAT ruling in case of Brindavan beverages[6] including the recent case of CESTAT Kolkata in case of Anutham Exim[7] would be a savior for the suppliers to argue that the impugned product would be subject to lower GST rate.

25. GST exemption/concession for specified medicines

Notification No. 12/2021 – Central Tax (Rate), Dated 30-09-2021

• • With effect from October 1, 2021, the GST rates on the following medicines have been reduced/exempted till December 31, 2021:

Sl. No.	Chapter, Heading, Subheading or Tariff item	Description of Goods	Effective Rate till Dec 31, 2021
1	30	Tocilizumab	Nil
2	30	Amphotericin B	Nil
3	30	Remdesivir	5%
4	30	Heparin(anti-coagulant)	5%
5	30	Itolizumab	5%
6	30	Posaconazole	5%
7	30	Infliximab	5%
8	30	Bamlanivimab&Etesevimab	5%
9	30	Casirivimab&Imdevimab	5%
10	30	2-Deoxy-D-Glucose	5%
11	30	Favipiravir	5%

26. Concessional rate for fortified rice kernels for schemes like ICDS

Notification No. 11/2021- Central Tax (Rate), Dated 30-09-2021

• • GST rate on supply of fortified rice kernels under Integrated Child Development Scheme has been reduced from 18% to 5%

E. Changes relating to Reverse Charge on Services

Notification No. 10/2021 – Central Tax (Rate), Dated 30-09-2021

27. RCM on Mentha oil purchased from unregistered person

Notification No. 10/2021 – Central Tax (Rate), Dated 30-09-2021

• • With effect from October 1, 2021, reverse charge would be applicable on the following essential oils other than those of citrus fruit namely:-

Sl. No.	HSN	Description of goods	Supplier	Recipient
3A	33012400, 33012510, 33012520, 33012530, 33012540	a)     Of peppermint (Menthapiperita)   b)     Of other mints: Spearmint oil (ex-menthaspicata), Water mint-oil (ex-mentha aquatic), Horsemint oil (ex-menthasylvestries), Bergament oil (ex-mentha citrate)	Any Unregistered Person	Any Registered Person

F. Changes notified for exemption notifications under Customs laws

Notification No. 45/2021 – Customs – Dated 30-09-2021

28. BCD exemption for import of Covid-19 Vaccines

Notification No. 45/2021 – Customs – Dated 30-09-2021

• • Exemption of Import of COVID-19 from BCD has further been extended from September 30, 2021 till December 31, 2021

29. Exemption from IGST on imports from Antarctica and Bangladesh

Notification No. 47/2021 – Customs – Dated 30-09-2021

• • Government has exempted the Imports from Antarctica and Bangladesh from the whole amount of IGST as below.

SL. No.	Imported from	Goods
1	Antarctica	Goods imported for specified purposes
2	Bangladesh	Import of specified goods for sale in Indo-Bangladesh haats where value of imported goods does not exceed $50 per day

30. Exemption from Custom duties and IGST on import of few life-saving drugs

Notification No. 46/2021 – Customs – Dated 30-09-2021

• Exemption has been provided on the import of following life saving drugs for treatment of Spinal Muscular Atrophy or Duchenne Muscular Dystrophy for personal use from the whole amount of Basic Custom Duty (BCD) and IGST

a) Zolgensma (Onasemnogene Abeparvovec)

b) Viltepso (Viltolarsen)

c) any other medicine for treatment of the said diseases

• Notified certificate needs to be obtained from Director General / Deputy Director  General/Assistant  Director  General,  Health  Services,  New  Delhi,  Director  of  Health Services  of  the  State  Government  or  the  District  Medical  Officer/Civil  Surgeon  of  the  district,  in each individual case

31. Relaxation has been provided for the condition of re-export of goods

Notification No. 46/2021 – Customs – Dated 30-09-2021

• IGST exemption for import of below specified goods on lease would continue to be available where such goods are given on further lease by the lessor in India to a new lessee (e. not re-exported) upon expiry or termination of original lease

a) Aircrafts, aircraft engines and other aircraft parts imported into India

b) Rigs and ancillary items imported for oil or gas exploration and production

c) All goods, vessels, ships [other than motor vehicles] imported

• In this regard, the original importer is required to intimate about the new lease transaction and the Customs department for discharging the bond. Further, the new lessee would be required to execute a similar bond
• Further, suppliers located in SEZ can also supply goods to another lessee provided GST is paid by them under forward charge mechanism.

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[1] Sl. No. 9AA of Notification No. 12/2017-Central Tax (Rate) Dated 28-6-2017 and Sl no. 10AA of  Notification No. 09/2017-Integrated Tax (Rate) Dated 28-06-2017

[2] Sl. No. 9AA of Notification No. 12/2017-Central Tax (Rate) Dated 28-6-2017 and Sl no. 10AA of  Notification No. 09/2017-Integrated Tax (Rate) Dated 28-06-2017

[3] Serial No. 19A and 19B of Notification No. 12/2017-Central Tax (Rate), Dated 28-6-2017 and Serial No. 20A and 20B of Notification No. 09/2017-Integrated Tax (Rate), Dated 28-06-2017

[4] SaiMotors, In re,[2020] 116 taxmann.com 853 (AAR – KARNATAKA)

[5] Parle Agro (P) Ltd. v. CIT [2017] 81 taxmann.com 194

[6] Brindavan Beverages (P.) Ltd. v. Commissioner of Customs, CEST [2020] 113 taxmann.com 178 (All-CESTAT)

[7] [2021] 131 taxmann.com 30