This circular provides comprehensive clarifications on the applicability of GST rates and exemptions on various services, based on the recommendations of the GST Council in its 47th meeting, to resolve interpretational issues and ensure uniformity in tax administration.

It clarifies that for the period from 1 July 2017 to 5 October 2021, GST paid at 5% without input tax credit on supply of ice cream by ice cream parlours shall be treated as fully paid and past cases will be regularised, with GST at 18% with ITC applicable prospectively from 6 October 2021. Fees charged by educational institutions for entrance examinations, admission processes, issuance of eligibility certificates, and migration certificates are clarified to be exempt as part of educational services.

The circular clarifies that storage or warehousing of cotton in ginned or baled form was exempt up to 17 July 2022, that services associated with transit cargo both to and from Nepal and Bhutan (including movement of empty containers) are exempt, and that sanitation and conservancy services supplied to Government departments such as the Army are not exempt unless they relate to functions entrusted to local authorities. Sale of advertisement space in souvenir books is eligible for concessional GST at 5%.

It further clarifies that hiring of vehicles with drivers for mining operations constitutes rental of transport vehicles taxable at applicable rates, while location or preferential location charges collected upfront for long-term lease of land form part of the lease premium and enjoy the same exemption. Honorarium paid to guest anchors is taxable subject to threshold limits. Additional toll charges collected from vehicles without FASTag are exempt as toll charges. IVF and ART services are covered under healthcare exemption, sale of developed land remains non-taxable, specific rules apply for reverse charge on renting of motor vehicles, concessional treatment is clarified for dairy plant turnkey contracts prior to 18 July 2022, and passenger transport by private ferries is exempt if not predominantly for tourism.