The Goods and Services Tax (GST) department may soon issue a slew of clarifications on certain vexing issues in tax rates, such as exemptions to assisted reproductive technology (ART) or in vitro fertilisation (IVF), as well as the applicability of GST on payment of honorarium to guest anchors. These could be issued as soon as the end of this month. A committee of tax officials from the central government and the states, known as […]
The Goods and Services Tax (GST) department may soon issue a slew of clarifications on certain vexing issues in tax rates, such as exemptions to assisted reproductive technology (ART) or in vitro fertilisation (IVF), as well as the applicability of GST on payment of honorarium to guest anchors. These could be issued as soon as the end of this month.
The Fitment Committee, which is comprised of tax officers from the Centre and states, has informed the GST Council that the Goods and Services Tax regime does not apply to healthcare services that are provided by a clinical establishment, an authorised medical practitioner, or paramedics. The Fitment Committee has also requested that a clarification be issued regarding GST exemptions to ART and IVF facilities.
The Goods and Services Tax (GST) legislation defines healthcare services as any service that involves the diagnosis, treatment, or care of an individual for a disease, accident, deformity, anomaly, or pregnancy under any recognised system of medicine in India.
It does not include hair transplants or cosmetic or plastic surgery, unless the procedures are performed to repair or reconstruct anatomy or functions of the body that have been compromised due to congenital flaws, developmental abnormalities, accident, or trauma.
Infertility can be remedied by undergoing an assisted reproductive technology (ART) therapy such as IVF. According to the fitment committee, these types of services are included under the definition of healthcare services for the purposes of the aforementioned exemption announcement. The committee also mentioned that a clarification may be provided in this regard in the form of a circular.
The recommendations of the committee, which will be presented to the GST Council meeting that will take place on June 28-29, also include a clarification on the issue of the applicability of GST on payment of honorarium to the guest anchors. This was included as part of the committee’s recommendations.
At each and every meeting of the Council, the committee will present its suggestion about tax rates, after first analysing the requests of various stakeholders.
Because some of the guest anchors have asked for the payment of GST at the rate of 18 percent on the honorarium that is provided to them for such appearances, the panel has received requests for clarity about this matter.
It has come to its attention that the provision of all products and services is subject to taxation unless it is exempt or characterised as “no supply.”
The goods and services tax (GST) will need to be paid for any services given by the guest anchors in lieu of honorarium.
“However, the threshold exemption restriction on the aggregate turnover of the service provider would be applicable. In the event that the threshold exemption limit for services is exceeded, liability would result,” it added, adding that a clarification may be made in accordance with this.
At the moment, organisations that supply services are required to register for the Goods and Services Tax (GST) if their total revenue surpasses Rs 20 lakh (for states in the regular category) or Rs 10 lakh (for other states) (for special category states).
In addition, the committee has requested a clarification on whether the business of selling space for advertisement in souvenirs would be subject to a tax rate of 5% or 18%.
According to the fitting committee, a tax of five percent is levied on the sale of advertising space in print publications. It was said that the operations carried out by various institutions and organisations toward selling space for advertisement in souvenirs would be subject to a 5% tax, and the stated position in GST legislation would need to be clarified accordingly.
In addition to proposing that the GST rates on 113 commodities and 102 services remain unchanged, the panel argued in favour of lowering the tax rate on ostomy appliances from 12 percent to 5 percent. This would be a drop from the current rate of 12 percent.
It was also recommended that the tax rates for orthopaedic implants (Trauma, Spine, and Arthoplasty Implants in the body); Orthoses (Splints, braces, belts, and callipers); and Prostheses (artificial limbs) be lowered to a uniform 5%, down from the present differential rate of 12 and 5%.
The GST rate for ropeway travel was suggested to be reduced from 18% to 5% by the committee, and the ITC of Himachal Pradesh presented this proposal to the GST Council in September of the previous year.
In addition, a clarification will be released about the Goods and Services Tax (GST) rates that will be applied to electric cars. This clarification will specify that EVs will be subject to a 5% tax rate regardless of whether or not the vehicle is equipped with a battery.
The committee has advised to the GST Council that a decision on the taxability of cryptocurrencies and other virtual digital assets be postponed for the time being. It was stated that a legislation regulating cryptocurrencies is on its way, and that it would be required to identify all important suppliers involved with the bitcoin ecosystem, in addition to classifying them according to whether or not they are products or services.
The committee was of the opinion that the problems that are a part of the crypto ecosystem require a more in-depth research. It was decided that Haryana and Karnataka will investigate all matters and provide a document to the fitment committee when the time is appropriate.