CBIC On Different Types of Declared Services under GST

CBIC or Central Board of Indirect Taxes and Customs has provided clear guidelines and regulations for different types of declared services under GST or Goods and Services Tax. As per the GST Act, declared services are those services that are provided by the service provider to the recipient and are declared by the government.

In this article, we will discuss the different types of declared services under GST and the applicable regulations as per CBIC.

Transportation of Goods

The transportation of goods is an essential service and plays a vital role in the logistics industry. Under GST, transportation of goods by road, air, sea, or inland waterways, including services provided by a goods transport agency, is considered as a declared service. The applicable tax rate for transportation of goods is 5% with full input tax credit.

Telecommunication Services

Telecommunication services include telephone, internet, and electronic communication services. These services are also considered as declared services under GST. The applicable tax rate for telecommunication services is 18% with full input tax credit.

Banking and Financial Services

Banking and financial services like banking, stockbroking, asset management, and insurance services are considered as declared services under GST. The applicable tax rate for these services is 18% with full input tax credit.

Works Contract Services

Works contract services include construction services like construction of buildings, bridges, roads, or any other civil structure. As per GST regulations, works contract services are considered as declared services. The applicable tax rate for works contract services is 12% with full input tax credit.

Support Services

Support services like cleaning, security, and housekeeping services are considered as declared services under GST. The applicable tax rate for support services is 18% with full input tax credit.

Conclusion

In conclusion, CBIC has provided clear guidelines and regulations for different types of declared services under GST. As a small or medium business owner or startup founder, it is crucial to understand these regulations to comply with the GST norms and avoid any legal complications.