This circular provides guidance on several GST issues. It clarifies that “same line of business” for availing limited ITC covers passenger transport and renting of motor vehicles with an operator, but not leasing of vehicles without an operator. It explains that when electricity charges are billed along with renting or maintenance of property, the entire supply is treated as a composite supply and taxed according to the principal service. Electricity will be excluded only when the supplier acts as a pure agent and charges it at actuals.

The circular further states that converting barley into malt is treated as job work relating to food products and attracts 5% GST, regardless of how the malt is ultimately used. It confirms that District Mineral Foundations Trusts set up by state governments qualify as Governmental Authorities and are eligible for the same GST exemptions.

Lastly, it clarifies that pure services or composite supplies involving horticulture works (with goods not exceeding 25% of value) provided to CPWD qualify for exemption under Notification 12/2017-CTR, as they relate to functions assigned to local bodies under the Constitution.