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GST on Supply of Services at same Rate as on Supply of Similar Goods - Rate List for Services | Learn About GST : Updates and Rules PDF Download

S.

No.

Description of Services

Rate

1

Transfer of the right to use any goods for any purpose (whether or not for a specified period)

Same rate of GST and compensation cess as on supply of similar goods

2

Any transfer of right in goods or of undivided share in goods without the transfer of title thereof

Same rate of GST and compensation cess as on supply of similar goods

 

Note: GST Rate = CGST Rate + SGST Rate.

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FAQs on GST on Supply of Services at same Rate as on Supply of Similar Goods - Rate List for Services - Learn About GST : Updates and Rules

1. What is the rate of GST on supply of services?
Ans. The rate of GST on supply of services is the same as the rate on supply of similar goods. This means that if a particular good attracts a certain GST rate, the services related to that good will also attract the same rate of GST.
2. How is the rate of GST determined for services?
Ans. The rate of GST for services is determined by considering the rate applicable to similar goods. The government aims to maintain consistency in the taxation of goods and services, and therefore, the rate of GST on services is aligned with the rate on similar goods.
3. What is the purpose of aligning the GST rate on services with that of similar goods?
Ans. Aligning the GST rate on services with that of similar goods ensures uniformity in taxation. It prevents any discrimination between the goods and services related to them, ensuring a level playing field for businesses. This approach also simplifies the tax structure and makes it easier for taxpayers to comply with the GST regulations.
4. How does aligning the GST rate on services benefit businesses?
Ans. Aligning the GST rate on services with that of similar goods provides clarity to businesses regarding the tax liability on their services. It eliminates any ambiguity or confusion regarding the applicable rate of GST, making it easier for businesses to calculate and pay their taxes accurately. This uniformity also promotes fair competition among businesses operating in the same sector.
5. Are there any exceptions to the rule of aligning the GST rate on services with that of similar goods?
Ans. While the general principle is to align the GST rate on services with that of similar goods, there may be certain exceptions based on the specific requirements and characteristics of certain services. In such cases, the government may prescribe a different rate of GST for those services. However, these exceptions are typically limited and the overall objective remains to maintain consistency in taxation.
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