This circular provides detailed clarifications on applicable GST rates and exemptions for certain services, based on recommendations of the GST Council, to remove ambiguities and ensure uniform implementation.

It clarifies that services provided by cloud kitchens or central kitchens by way of cooking and supply of food, including takeaway or delivery, qualify as restaurant service and attract GST at 5% without input tax credit. In contrast, ice cream parlours selling pre-manufactured ice cream are treated as suppliers of goods and such sales attract GST at 18%.

The circular also exempts coaching services provided by institutions or NGOs under the central sector scheme “Scholarships for Students with Disabilities,” where the entire expenditure is borne by the Government. Satellite launch services provided by New Space India Limited to foreign customers are treated as export of services and are zero-rated, similar to services earlier provided by Antrix Corporation.

Overloading charges collected at toll plazas are clarified to be in the nature of toll charges and are therefore exempt from GST. Renting or hiring of vehicles to State Transport Undertakings or local authorities is clarified to be covered under the exemption for “giving on hire,” making such services GST-exempt when conditions are met.

Further, it is clarified that services for grant of mineral exploration and mining rights attract GST at 18%, including for the period from 1 July 2017 to 31 December 2018. Admission to amusement parks, including indoor parks with rides, attracts GST at 18%, while admission involving casinos or race clubs attracts GST at 28%. Lastly, job work services for manufacture of alcoholic liquor for human consumption are clarified to attract GST at 18% and not the concessional rate applicable to food products.