This circular provides multiple clarifications regarding the applicability of GST on certain services in line with the recommendations of the 54th GST Council meeting held on 9th September 2024.

It clarifies that affiliation services provided by universities to colleges and by educational boards to schools are taxable at 18%, except when provided to government schools, which are exempt from 10th October 2024. It also regularizes tax payment on such services for past periods on an “as is where is” basis.

Further, DGCA-approved flying training courses conducted by approved flying training organizations are exempt, as they qualify as education recognized by law. Passenger transport by helicopter on a seat-share basis is taxable at 5% prospectively and regularized for past periods, while charter operations remain taxable at 18%.

The circular also clarifies that ancillary services (loading, unloading, warehousing, etc.) provided by Goods Transport Agencies (GTA) form part of a composite supply of transportation services. Additionally, Preferential Location Charges (PLC) are treated as part of construction services and taxed at the same rate.

Other clarifications include regularization of GST on import of services by foreign airline establishments, support services by electricity utilities, and distribution rights of films between distributors and exhibitors for earlier periods.