Recommendation in 25^th GST Council Meeting held on 18/01/2018

1. Legal Service

To exempt- legal services provided to Government, Local Authority, Governmental Authority and Government Entity.

2. Metro and Monorail

To reduce- GST rate on construction of metro and monorail projects (construction, erection, commissioning or installation of original works) from 18% to 12%.

3. Works Contract Service

To reduce - GST rate (from 18% to 12%) on the Works Contract Services (WCS) provided by sub-contractor to the main contractor providing WCS to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity, which attract GST of 12%. Likewise, WCS attracting 5% GST, their sub-contractor would also be liable @ 5%.

4. Lease of Land

To exempt- services by government or local authority to governmental authority or government entity, by way of lease of land.

5. Pure Service

To amend- entry 3 of notification No. 12/2017-CT(R) so as to exempt pure services provided to Govt. entity.

Entry 3 of the Notification presently reads as under:

Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution.

6. Pure Service in the nature of Composite Supply

To expand - pure services exemption under S. No. 3 of 12/2017-C.T. (Rate) so as to include composite supply involving predominantly supply of services i.e. upto 25% of supply of goods.

7. Renting of Immovable Property

To tax - renting of immovable property by government or local authority to a registered person under reverse Charge while renting of immovable property by government or local authority to un-registered person shall continue under forward charge.