Circular No. 34/8/2018-GST [C10-173]

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Circular No. 34/8/2018-GST the composite supply. Supply of retreaded tyres, where the old tyres belong to the supplier of retreaded tyres, is a supply of goods (retreaded tyres under heading 4012 of the Customs Tariff attracting GST @ 28%)

3. Whether Priority Sector In Reserve Bank of India FAQ on PSLC, it has been Lending Certificates mentioned that PSLC may be construed to be in the (PSLCs) are outside the nature of goods, dealing in which has been notified as purview of GST and a permissible activity under section 6(1) of the therefore not taxable? Banking Regulation Act, 1949 vide Government of India notification dated 4th February, 2016. PSLC are not securities. PSLC are akin to freely tradeable duty scrips, Renewable Energy Certificates, REP license or replenishment license, which attracted VAT.

In GST there is no exemption to trading in PSLCs. Thus, PSLCs are taxable as goods at standard rate of 18% under the residuary S. No. 453 of Schedule III of notification No. 1/2017-Central Tax(Rate). GST payable on the certificates would be available as ITC to the bank buying the certificates.

4. (1) Whether the activities (1) Service by way of transmission or distribution of carried by DISCOMS electricity by an electricity transmission or against recovery of charges distribution utility is exempt from GST under from consumers under State notification No. 12/2017- CT (R), Sl. No. 25. The Electricity Act are exempt other services such as, - from GST? i. Application fee for releasing connection of electricity; (2) Whether the guarantee ii. Rental Charges against metering provided by State equipment; Government to state owned iii. Testing fee for meters/ transformers, companies against capacitors etc.; guarantee commission, is iv. Labour charges from customers for taxable under GST? shifting of meters or shifting of service lines;

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Circular No. 34/8/2018-GST v. charges for duplicate bill; provided by DISCOMS to consumer are taxable.

(2) The service provided by Central Government/State Government to any business entity including PSUs by way of guaranteeing the loans taken by them from financial institutions against consideration in any form including Guarantee Commission is taxable.

2. Difficulty if any, in the implementation of this circular may be brought to the notice of the Board.