GST Section 1 & Section 2 Explained: Basics, Key Definitions, and Examples

THE CENTRAL GOODS & SERVICES TAX ACT, (2017)

Section (1) - Extent, Short title & Commencement. -

(1) It shall come into force on such date as the Central Government, by notification in the official Gazette, appoint:
(2) This Act may be called the Central Goods and Services Tax Act, 2017.

(3) It extends to the whole of India 

Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

Section (2) - Definitions. - In this Act, unless the context otherwise requires, --------------------------------------------------------

(1) "actionable claim" shall have the same meaning as assigned to it in section 3 of the Transfer of Property Act, 1882 (4 of 1882)

(2) "address of delivery" means the address of the recipient of goods or services, or both indicated on the tax invoice issued by a registered person for delivery of such goods or services or both.

(3) "address on record" means the address of the recipient as available in the records of the supplier.

(4) "adjudicating authority" means any authority, appointed or authorized to pass any order or decision under this Act, but does not include the 3 [Central Board of Indirect Taxes and Customs], the Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for advance Ruling, 4[the National Appellate Authority for Advance Ruling,] 5[the Appellate Authority, the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171];

(5) "agent" means a person, including a factor, broker, commission agent, Arratia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another.

(6) "aggregate turnover" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

(7) "agriculturist" means an individual or a Hindu Undivided Family who undertakes cultivation of land 

(a) by own Labour, or

(b) by the Labour of family, or

(c) by servants on wages payable in cash or kind or by hired lab our personal supervision or the personal supervision of any member of the family:

(8) "Appellate Authority" means an authority appointed or authorized to hear appeals a referred to in section 107.

(9) "Appellate Tribunal" means the Goods and Services Tax Appellate Tribunal constituted under section 109.

(10) "appointed day" means the date on which the provisions of this Act shall come into force.

(11) "assessment" means determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment:

(12) "associated enterprises" shall have the same meaning as assigned to it in section 92A of the Income-tax Act, 1961 (43 of 1961)

(13) "audit" means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provision of this Act or the rules made thereunder;

(14) "authorized bank" shall mean a bank, or a branch of a bank authorized by the Government to collect the tax or any other amount payable under This Act. 

(15) "authorized representative" means the representative as referred to in section 116;

(16) "Board" means the 6[Central Board of Indirect Taxes and Customs] constituted under the Central Board or Revenue Act, 1963 (54 of 1963);

(17) "business" includes -

(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit:

(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a):

(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction.

(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business.

(e) provision by a club, association, Society, or any such body (for a subscription or any other consideration of the facilities or benefits to its members.

(f) admission, for a consideration, of persons to any premises.

(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation:

(h) 7[ activities of a race club including by way of totalizator or a license to book maker or activities of a licensed book maker in such club: and]

(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities.

(18) [@@@@].

(19) "capital goods" means goods, the value of which is capitalized in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business.

(20) "casual taxable person" means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a Union territory where he has no fixed place of business.

(21) "central tax" means the central goods and services tax levied under section 9.

(22) "cess" shall have the same meaning as assigned to it in the Goods and Services Tax (Compensation to States) Act.

(23) "Commissioner" means the Commissioner of central tax and includes the principal commissioner of central tax appointed under section 3 and the Commissioner of integrated tax appointed under the Integrated Goods and Services Tax Act.

(24) "chartered accountant" means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949).

(25) "Commissioner in the Board" means the Commissioner referred to in section 168.

(26) "common portal" means the common goods and services tax electronic portal referred to in section 146.

(27) "common working days" in respect of a State or Union territory shall mean such days in succession which are not declared as gazette holidays by the Central Government or the concerned State or Union territory Government

(28) "company secretary" means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980);

(29) "competent authority" means such authority as may be notified by the government

(30) "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or anu combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply

Illustration. - Where goods are packed and transported with insurance, the supply of goods packing materials, transport and insurance is a composite supply and supply of goods is a principal supply.

(31) "consideration" in relation to the supply of goods or services or both includes-

(a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement o, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a state Government.

(b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government.

Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply.

(32) "continuous supply of goods" means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may subject to such conditions, as it may, by notification, specify;

(33) "continuous supply of services" means a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for period exceeding three months with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify.

(34) "conveyance" includes a vessel, an aircraft and a vehicle.

(35) "cost accountant" means a cost accountant as defined in 9[clauses (b)] of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959(23 of 1959).

(36) "Council" means the Goods and Services Tax Council established under article 279A of the Constitution.

(37) "credit note" means a document issued by a registered person under subsection (1) of section 34.

(38) "debit note" means a document issued by a registered person under subsection (3) of section 34.

(39) "deemed exports" means such supplies of goods as may be notified under section 147.

(40) "designated authority" means such authority as may be notified by the Board. 

(41) "document" includes written or printed record of any sort and electronic record as defined in clause (t) of section 2 of the Information Technology Act, 2000 (21 to 2000). 

(42) "drawback" in relation to any goods manufactured in India and exported, means the rebate of duty, tax or cess chargeable on any imported inputs or on any domestic inputs or input services used in the manufacture of such goods.

(43) "electronic cash ledger" mean the electronic cash ledger referred to in sub-section (1) of section 49.

(44) "electronic commerce" means the supply of goods or services or both, including digital products over digital or electronic network.

(45) " electronic commerce operator" means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.

(46) "electronic credit ledger" means the electronic credit ledger referred to in sub-section (2) of section 49.

(47) "exempt supply" means supply of any goods or services or both which attracts nil rate of tax, or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act and includes non-taxable supply.

(48) "existing law" means any law, notification, order, rule or regulation relating to levy and collection of duty or tax on goods or services or both passed or made before the commencement of this Act by Parliament or any Authority or person having the power to make such law, notification, order, rule or regulation.

(49) "family" means, (i) the spouse and children of the person, and (ii) the parents, grand-parents, brothers and sisters of the person if they are wholly or mainly dependent on the said person.

(50) "fixed establishment" means a place (other than the registered place of business) which is characterized by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs.

(51) "Fund" means the Consumer Welfare fund established under section 57;

(52) "goods" means every kind of movable property other than money and securities but includes actionable claim, growing crops, and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.

(53) "Government" means the Central Government.

(54) "Goods and Services Tax (Compensation to States) Act" means the Goods and Services Tax (Compensation to States) Act, 2017.

(55) "goods and services tax practitioner" means any person who has been approved under section 48 to act as such practitioner. 

(56) "India" means the territory of India as referred to in article 1 of the Constitution, its territorial water, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976(80 of 1976), and the air space above its territory and territorial waters;

(57) "Integrated Goods and Services Tax Act" means the Integrated Goods and Services Tax Act, 2017

(58)  "integrated tax" means the integrated goods and services tax levied under the Integrated Goods and Services Tax Act.

(59) "input" means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business.

(60) "input services" means any service used or intended to be used by a supplier in the course or furtherance of business.

(61) "Input Service Distributor" means an office of the supplier of goods or services or both which receives tax invoices issued section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable or services or both having the same Permanent Account Number as that of the said office;

(62) "input tax" in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services, or both made to him and includes-

(a) the integrated goods and services tax charged on import of goods.

(b) the tax payable under the provisions of sub-sections (3) and (4) of section 9.

(c) the tax payable under the provisions of sub-sections (3) and (4) of suction 5 of the integrated Goods and Services Tax Act.

(d) the tax payable under the provisions of sub-sections (3) and (4) of section 9 of the respective State Goods and services Tax; or

(e) the tax payable under the provisions of sub-section (3) and (4) of section 7 of the Union Territory Goods and Services Tax Act,

But does not include the tax paid under the composition levy.

(63) "input tax credit" means the credit of input tax.

(64) "intra-State supply of goods" shall have the same meaning as assigned to it in section 8 of the INTEGRATED goods AND services Tax Act.

(65) "intra-State supply of services" shall have the same meaning as assigned to it in section 8 of the Integrated Goods and Services Tax Act.

(66) "invoice" or "tax invoice" means the tax invoice referred to in section 31:

(67) "inward supply" in relation to a person, shall mean receipt of goods or services or both whether by purchase, acquisition or another means with or without consideration:

(68) "Job work" means any treatment or process undertaken by a person on goods belonging to another registered person and the expression " job worked" shall be construed accordingly.

(69) "local authority" means-

(a) a "Panchayat" as defined in clause (d) of article 243 of the Constitution.

(b) a "Municipality" as defined in clause (e) of article 243P of the Constitution.

(c) a Municipal Committee, a Zilla parishad, a District Board and any other authority legally entitled to or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund.

(d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006 (41 of 2006)

(e) a Regional Council or a District Council Constituted under the Sixth Schedule to the Constitution.

(f) a Development Board constituted under article 371 [and article 371J] of the Constitution; or 

(g) a Regional Council constituted under article 371A of the Constitution.

(70) "location of the recipient of services" means, -

(a) where a supply is received at a place of business for which the registration has been obtained, the location of such place of business.

(b) where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment.

(c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the 

(d) in absence of such places, the location of the usual place of residence of the recipient.

(71) "location of the supplier of services" means, -

(a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business

(b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment.

(c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provisions of the supply; and

(d) in absence of such place, the location of the usual place of residence of the supplier.

(72) "manufacture" means processing of raw material or inputs in anu manner that results in emergence of a new product having a distinct name, character and use and the term "manufacturer" shall be construed accordingly"

(73) "market value" shall mean the full amount which a recipient of a supply is required to pay in order to obtain the goods or services or both of like kind and quality at or about the same time and at the same commercial level where the recipient and the supplier are not related.

(74) "mixed supply" means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.

Illustration. - A supply of package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply.  Each of these items can be supplied separately and is not dependent on any other . It shall not be a mixed supply if these items are supplied separately.

(75) "money" means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange. letter of credit, draft, pay order, Traveller cheque, money order, postal or electronic remittance or any other instrument recognized by the Reserve Bank of India when used as a consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value.

(76) "motor vehicle" shall have the same meaning as assigned to it in clause (28) of section 2 of the Motor Vehicle Act, 1988 (59 of 1988)

(77) "non-resident taxable person" means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.

(78) "non-taxable supply" means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act.

(79) "non-taxable territory" means the territory which is outside the taxable territory.

(80) "notification" means a notification published in the official Gazette and the expressions "notify" and "notified" shall be construed accordingly.

(a) "online gaming" means offering of a game on the internet or an electronic network and includes online money gaming:

(b) "online money gaming" means online gaming in which players pay or deposit money or money's worth, including virtual digital assets, in the expectation of winning money or money's worth, including virtual digital assets, in any event including game, scheme competition or any other activity or process, whether or not its outcome or performance is based on skill, chance or both and whether the same is permissible or otherwise under any other law for the time being in force

(81) "other territory" includes territories other than those comprising in a state and those referred to in sub- clauses (a) to (e) of clause (114);

(82) "output tax" in relation to a taxable person, means the tax chargeable under this Act on payable by him on reverse charge basis.

(83) "outward supply" in relation to a taxable person, means supply of goods or services or both, whether by sale, transfer, barter, exchange,licence, rental, lease or disposal or any other mode, made or agreed to be made by such person in the course or furtherance of business.

(84) "person" includes- (a) an individual (b) a Hindu Undivided Family (c) a company (d) a firm (e) a Limited Liability Partnership (f) an association of persons or a body of individuals, whether incorporated or not, in India or outside (g) any corporation established by or under under any Central Act, State Act, or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013);(h) anybody corporate incorporated by or under the laws of a country outside India (I) a co-operative society registered under any law relating to co-operative societies (j) a local authority (k) Central Government or a State Government (l) society as defined under the Societies Registration Act, 1860 (21 of 1860) (m) trust and (n) every artificial juridical person, not falling within any of the above;

(85) "place of business" includes-

(a) a place from where the business is ordinaryily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or

(b) a place where a taxable person maintains his books of account: or

(c) a place where a taxable person is engaged in business through an agent, by whatever name called.

(86) "place of supply" means the place of supply as referred of the Integrated Goods and Services Tax Act.

(87) "prescribed" means prescribed by rules made under this Act on the recommendations of the Council.

(88) "principal" means a person on whose behalf an agent carries on the business of supply or receipt of goods or services or both.

(89)"principal place of business" means the place of business specified as the principal place of business in the certificate of registration.

(90) "principal supply" means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary.

(91) "proper officer" in relation to any function to be performed under this Act, means the Commissioner or the officer of the central tax who is assigned that function by the Commissioner in the Board.

(92) "quarter" shall mean a period comprising three consecutive months, ending on the last day of March, June, September and December of a calendar year.

(93)  "recipient" of supply of goods or services or both, means - (a) where a consideration is payable of goods or services or both, the person who is liable to pay that consideration.

(b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and

(c) where no consideration is payable for the supply of a services, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplies.

(94) "registered person" means a person who is registered under section 25 but does not include a person having a Unique identity Number.

(95) "regulations" means the regulations made by the Board under this Act on the recommendations of the Council.

(96) "removal" in relation to goods, means- (a) dispatch of the goods for delivery by the supplier thereof or by any other person acting on behalf of such supplier; or (b)

(97) "return" means any return prescribed or otherwise required to be furnished by or under this Act or the rules made thereunder.

(98) "reverse charge" means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section9 or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act.

(99) "Revisional Authority" means an authority appointed or authorized for revision of decision or order as referred to in section 108.

(100) "Schedule" means a Schedule appended to this Act.

(101) "securities" shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 to 1956

(102) "service" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, form currency or denomination, to another form, currency or denomination for which a separate consideration is charged.

(102A) "specified actionable claim" means the actionable claim involved in or by way of-----------------------------------------------------------------------------

Betting, Casinos, Gambling, Horse racing, online money gaming & lottery

(103) "State "includes a Union territory with Legislature.

(104) "State tax" means the tax levied under any State Goods and Services Tax Act.

(105 "supplier" in relation to anu goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied.

[Provided that a person who organizes or arranges, directly or indirectly, supply of specified actionable claims, including a person who owns, operates or manages digital or electronic platform for such supply, shall be deemed to be a supplier of such actionable claims, whether such actionable claims are supplied by him or through him and whether consideration in money or money's worth, including virtual digital assets, for supply of such actionable claims is paid or conveyed to him or through him or placed at his disposal in any manner, and all the provisions of this Act shall apply to such supplier of specified actionable claims, as if he is the supplier liable to pay the tax in relation to the supply of such actionable claims']

(106) " tax period" means the period for which the return is required to be furnished.

(107) "taxable person" means a person who is registered or liable to be registered under section 22 or section 24

(108) taxable supply - means a supply of goods or services or both which is leviable to tax under this Act.

(109) taxable territory - means the territory to which the provisions of this Act apply.

(110) telecommunication service - means service of any description (including electronic mail , voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electromagnetic means.

(111) the State Goods and Services Tax Act - means the respective state Goods and Services Tax Act, 2017

(112) turnover in State - "turnover in Union territory" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a state or Union territory by a taxable person, exports of goods or services or Bothe and inter-state supplies of goods or services or both made from the State or Union territory by the said taxable person but exclude central tax, State tax, Union territory tax, integrated tax and cess.

(113) "usual place of residence - means (a) in case of an individual, the place where he ordinarily resides. (b) in other cases, the place where the person is incorporated or otherwise legally constituted.

(114) Union territory - means the territory of 

(a) other territory (b) Ladakh (c) the Andaman and Nicobar Islands (d) Chandigarh and Dadar and Nagar haveli and Daman and Diu

Explanation- For the purposes of this Act, each of the territories specified in sub-clauses (a) to (f) shall be considered to be a separate Union territory

(115) "Union territory tax - means the Union territory goods and services tax levied under the Union Territory Goods and Services Tax Act.

(116) " Union Territory Goods and Services Tax Act" means the Territory Good

(117) "valid return" means a return furnished dunder sub-section (1) of section 39 on which self-assessed tax has been paid in full.

(118) Virtual digital asset - shall have the same meaning as assigned to it in clause (47A) of section 2 of the Income-tax 1961

NEW UPDATES OF GST RATE

 GST RATE RATIONALISATION AFTER ITEM-WISE ANALYSIS

New Delhi: Rationalization of GST rates may be some time away, but assessment has begun in the background to assess possible and avoid inverted duty structure in several segments where the duty on the final product is lower than the tax on inputs.

While industry has demanded that rationalization, which will mean reworking of rtes. of various goods and services and also merging the four slabs on three, govt is no going to rush into any such exercise without a detailed analysis. A group of ministers had earlier looked at the issued but a decision on it has been pending for several months.

The broad assessment among industry players is that 12% and 18% slabs will be merged and a new 15-16% rate could emerge as the mid-rate, along with the 5% and 28% slab, given that several items will see an upward movement from the 12% slab, a political call needs to be taken. In fact, a few years ago some internal exercise had also been done in the finance ministry but covid had upset all the calculations. Whenever the rate changes take place, which could be several months away, govt wants to avoid a situation where it is accused of being anti-consumer, while also ensuring that the exercise is revenue neutral to the extent possible.

As a result, a very preliminary internal assessment is being done to see how a change in the rate of items in these segments would impact revenue flow, especially when the weighted average rate worked out to11.6% according to an analysis done by RBI a few years ago, against the proposed revenue neutral rate of 15-15.5 when GST was launched almost seven years ago.

But there is growing demand, and to an extent even realization within a section of govt, that the rates on several items, such as insurance or telecom services should not be 18%, but lower. Or, for that matter even cement should not be in the 28% bracket, given that it is used for construction, which has been a key demand of the industry. But before item-wise rates are discussion, finance ministers from the states and the Centre need to take a call to move ahead with rationalization.

GST Rates in India 2024 New updates

GST rates list is crucial for every Indian business and consumer to know. When the GST Council revises the Goods and Services Tax (GST) rates, it hits respective industries, trade bodies and end consumers, impacting the economy. Everyone tends to evaluate their position as a result of this Chage.

GST rates list highlights for the year 2024 all the recent Chages & updates of GST rates after the 54th GST Council meeting.

Meaning of GST Rates

Every business registered under GST must raise invoices with GST amounts charged on the supply value. These GST amounts are derived as a percentage value of taxable amounts. Such as percentage rate used is called the GST rate. For instance, GST of Rs. 1,200 charged on taxable value of Rs. 10,000 arrived by multiplying 12% GST rate with Rs. 10,000

Therefore, GST rate is a percentage rate of tax imposed on the sale of goods or services under the CGST, SGST and IGST Acts.

CGST GST rate and SGST GST rate would both behalf of IGST GST rate. In other words, the GST rate in CGST and SGST (For intrastate transactions) are approximately the same. Whereas the GST rate in the case of IGST (For interstate transactions) is approximately the sum total of CGST and SST rate

Types of GST Rates and GST Rate structure in India

The primary GST slabs for anu regular taxpayers are presently pegged at o%(nil-rated), 5%,12%,18% & 28 %. There is a new lesser-used GST rate such as 3% and 0.25%

Also, the composition taxable persons must pay GST at lower or nominal rates such as 1.5 or 5% or 6% on their turnover. There is a concept of TDS and TCS under GST as well, whose rates are 2% and 0.5% respectively (prior to 9th July 2024, it was 1%)

Further, the GST law levies cess in addition to the above GST rates on the sale of some items such as cigarettes, tobacco, aerated water, petrol, and motor vehicles, rates widely varying from 1% to 204%

The GST rate structure for some of the commonly used consumable products is given in the below table. For more items, type in the item you wish to know the GST rate of by visiting our HSN code & GST rates finder

LIST OF GST ITEMS @ 0%

Milk, Kajal, Eggs, Educational Services, Curd, Lassi, Health Services, Children's Drawing & Colouring Books, Unpacked Foodgrains, Unbranded Atta/Maida, Unpacked Paneer, Gur, Beasn, Unbranded Natural Honey, Fresh Vegetables, Salt, Prasad, Palmyra Jaggery, Phool Bhari Jhadoo etc. 

LIST OF GST ITEMS @ 5%

Sugar, packed paneer, Tea, Coal, Edible Oils, Raisin, Domestic LPG, Roasted Coffee Beans, PDS Kerosene, Skimmed Milk Powder, Cashew Nuts, Footwear (<Rs.500), Milk Food for Babies, Apparels (< Rs.1000) Fabric, Coir Mats, Coffee (except instant), Mishti/Mithai (Indian Sweets), Life-saving drugs, Agar Batti & Matting & Floor covering spices.

LIST OF GST ITEMS @ 12%

Nuts or other parts of Plants, including pickle Murabba, Fruit Juice, Preparations of Vegetables, Fruits, Chutney, Jam, Jelly, Packed Coconut Water, Umbrella, Butter, Ghee, Processed food, Mobiles & Almonds.

LIST OF GST ITEMS @ 18%

Hair Oil, Capital Goods, Toothpaste, industrial Intermediaries, Soap, ice-cream, Pasta, Toiletries, Corn, Flakes, Soups, Printers & Computers.

LIST OF GST ITEMS @ 28%

Small cars, High-end motorcycles, Consumer durables such an AC and fridge, Luxury & sin items like BMWs, Cigarettes and aerated drinks.

GST ON EXCISE DUTY

India is a socialist, secular, democratic republic and follows a federal structure that includes both the Central and State-level government. The government at both the levels share the responsibility to manage country's developmental needs. The primary source of income for both the government is tax. In other words, a tax is a contribution.

In India, the power to tax vest in both the Central and State government. The power to levy and collect divides the power between the Cental and the State Governments.

Prior to the launch of unified tax system as GST, Indian indirect tax regime was highly fragmented. Centre and States were separately taxing goods and services. The Centre was empowered to tax goods at the production or manufacturing stage. The Centre was also empowered to levy on services. This structure of taxation suffered from various shortcomings.

There were multiple taxes like central excise duty, Service tax, VAT, CST, purchase tax, entertainment tax etc. additionally, there was multiplicity of rate, laws and procedures. This caused heavy compliance burden on the taxpayer's serious problem. For example, VAT was levied on a value that included central excise duty.

Input tax credit chain broke as goods moved from one State to another, resulting in hidden cost for the business. There were tax Naksa at every inter-State border, creating bottlenecks in inter-State transport of goods. Every State was effectively a distinct market for the industry as well as consumer. Industry's choice of locating Factores or warehouse was heavily influenced by the prevailing tax regime rather than pure business considerations, making the industry uncompetitive.

Some of the primary problems with the pre-GST regime were:

(A) Taxation at manufacturing level

Central excise duty was levied on goods manufactured or produced, limiting the taxable event at manufacturing point leading to a narrow base and posed a severe impediment to an efficient neutral application of tax.

(B) Exclusion of Services

The states were precluded from taxing services. This arrangement posed difficulties in taxation of goods supplied as part of a composite works contract involving a supply of both goods and services, and under leasing contracts, which entail a transfer of the right to use foods without any transfer of their ownership

(c) Interpretational Issues

Problems also arose in respect of interpretation of various provisions and determining the category of the commodities. To decide the nature of transaction that is whether and activity was sale or works contract; sale of service was not free from doubt.

(d) Tax Cascading

Tax cascading means a tax-on-tax. Tax cascading occurred under both the Centre and the State taxes. The most significant contributing factor to tax cascading was the partial coverage by the Central and the state tax. Under the erstwhile system, tax payable at the time of sale was levied on a value which already included the tax paid at the time of manufacture that is central excise duty. Furthermore, there were certain taxes for which input credit tax was not admissible which thus formed a part of the cost of the goods. Moreover, input tax credit in respect of CST on inter-state sale of goods was not admissible. All these taxes become a part of cost of goods thereby leading to cascading.

(e) Local sale v/s central Sale

Fixing the situs of the sale transaction that is whether the sale takes place in one State, or another was a major confect as it affects the revenue of the State. CST that is Central Sales Tax was a tax levied on inter-State sale of goods by the Central government but the power to collect and retain the CST was vested with the State government.

(f) Lack of uniformity in VAT provisions and rates

The VAT structure lacked uniformity across the States which was not only confined to the tax rate but also extended to procedures, definitions, computations and exemptions.

(g) Complexity in determining the nature of transaction

The advancement in information technology had blurred the distinction between goods and services. In the present scenario, goods, services and other supplies are being packaged through as composite bundles and offered for sale to the consumers. Neither the Central nor the state government could levy tax on such bundles in a seamless manner.

(h) Complexity

In spite of the improvements made in the tax design and administration over the years, the tax regime remained complex. They were subject to disputes and court challenges and the process for resolution of disputes and court challenges and the process for resolution of disputes was slow and expensive. At the same time, the systems suffered from substantial compliance gaps, except in the highly organized sectors of the economy.

More than 17 taxes including both of the Centre and the States i.e. Central Excise duty, Additional duties of excises, Excise duty levied under Medicinal & Toiletries Preparation Act, Additional duties of customs, service Tax, State VAT or Sale Tax, Central Sales Tax, Purchase Tax, entertainment Tax, Luxury Tax, Entry Tax, Taxes on lottery, betting & gambling and other surcharges & cesses were subsumed into a single Goods and Services Tax (GST). Constitution was further amended to provide concurrent powers to both the Centre & the States to levy GST. The objective was to mitigate the ill effects of cascading or double taxation in a major way and pave the way for a common national market.

The introduction of the Goods and Services Tax (GST) was a significant step towards making India economically competitive by ushering in higher transparency costs and improved compliance. It was the much-needed transformation in the field of indirect tax Systeme of the country. It was launched with the object to streamline taxation and reduce compliance burden.

Since its launch, the country has witnessed digitalization in tax compliance and improved supply chain efficiencies. It is a tax regime founded on a technology-based monitoring system with e- business processes like, e-Returns, e-Invoice, e-Way bills, etc. It was also vital to recognize the effectiveness of the Centre- State collaboration under the auspices of the GST council which has ensured policy implementation uniformly across States. Despite the scale of the COVD-19 crisis, the government and the industry was agile in adjusting to the "new normal "and restarting economic activity GST has made Indian products competitive in the domestic and international markets owing to the full neutralization of input taxes across the value chain of production and distribution.

In the words of Hon'ble Prime Minister Shri Narendra Modi, the Goods and Services Tax (GST) is " a path-breaking legislation for new India"

This revolutionary taxation system was rolled out on the midnight of 01 July 2017 in a ceremony held in the Central Hall of Parliament's is not Nerely a tax reform but a milestone in realizing Sardar Vallabhbhai Patel's dream of building.                           

 

GST under Export

 Export of goods and refund under GST

1 Introduction

Government has always focused on making industry friendly polices when it comes to exports since the consideration is received in foreign currency. Under per-GST regime, excisable goods were allowed to be exported without payment of duty in terms of rule 19 of the Central Excise Rules, 2002. along similar lines, but without any binding precedent, section 16 is placed in Integrated Goods and Service Tax Act, 2017 (IGST Act). This article summarizes authors learning from a deep dive into various aspects involved in neutralizing GST incidence on exports and lays out some concerns for reader's attention.

Procedure for making zero-rated supply

Eeporter who intends to export goods without payment of IGST, is required to furnish LUT. LUT has to be applied on common portal in Form RFD-II and the same will be valid for the entire Financial Year.

LUT is to be furnished prior to undertaking export of goods. However, Central Board of Indirect Taxes (CBIC) vide circular no. 125/44/2019 dated November 18, 2019, has clarified that the substantive benefit of zero-rated supply may not be denied where the exporter has delayed in furnishing LUT. Accordingly, LUT may be admitted on ex post facto basis, taking into account, facts and circumstances of each case.

Exporter is required to issue a tax invoice for export of goods and the particulars "Supply meant for export under bond or Letter of Undertaking without payment of integrated tax" is required to be mentioned on the tax invoice. Do note that overseas buyer does requires an export Invoice denominated in agreed foreign currency and not tax invoice denominated in Indian Rupees.

In addition to the invoice, exporter is required to file shipping bill in Form SB-I. Shipping bill is required to be issued in four copies.

It is pertinent to note that exporter is required to export the goods within 3 months from the date of tax invoice. In case the goods are not exported within such time, Rules 96A (1) of the Central Goods and Service Tax Rules, 2017 (CGST Rules) provides that tax along with the interest at 18 percent is required to be paid withing 15 days from the end of this 3 months period or such further period as may be allowed by the commissioner.

Export of goods under LUT

Section 54 of the CGST Act read with Rule 96 of the CGST Rules provides the mechanism for claiming refund on account of export of goods. As discussed earlier, exporter has an option for export goods under LUT or they may export goods on payment of IGST. Accordingly, the refund provision for each scenario are as under

Certain issues in amendments in the refund formula:

* It is pertinent to note that the restriction place in Rule 89 (4) (c) of the CGST Rules on the value of export of goods maximum to 1.5 times the value of like goods sold domestically s inserted vide Notification No. 16/2020-Central Tax dated March 23, 2020. There were no such restriction placed earlier. To expect that export price greater than 50 percent over domestic price is unwarranted restraint on export benefits that is described and earned by exporters.

* It is deeply concerning if the said restriction applies to refund claim filed after March 2020 which are pertains to past period i.e. before March 2020. 

* It is worthwhile to highlight that the said sub rule has been 'substituted' vide Notification No 16/2020-Central Tax dated March 23, 2020. In other words, the old rule has been replaced with new rule. Accordingly, one needs to interpret whether the said substitution can extent this restriction to rebates yet to be filed for past exports and thereby be retrospective.

* The calculation of 1.5 times the value of export of goods is applicable in the numerator only. In numerator the actual export value of goods is required to be added to the total adjusted turnover. Hence, this would further reduce the net refund amount to the exporter and is clearly a retrograde step.

Zero-rated supply

Supplies specified in section 16 of IGST Act are called 'zero-rated suppliers' notwithstanding the generally applicable rate of GST. Zero-rated supply is a moniker for supplies enlisted in section 16 of IGST Act:

Export of goods is defined under Section 2 (5) of the IGST Act which states that "export of goods" with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India. Expert of goods would be treated as inter-state supply in accordance with Section 7(5) (a) of the IGST Act. Under section 16 of the IGST Act, following are treated as zero-rated supplies:

(a) Supply of goods or services to /special Economic Zone developer or a Special Economic Zone Unit

(b) Export of goods or services or both

Zero-rated supply does not mean that the goods or services or services are nil rated or are subject to 0 percent tax. In respect of such zero-rated supplies, section 16(3) provides options to neutralize the incidence of GST on exports, namely, either exporter is free to export goods on payment of IGST (rebate option) or to export under Letter of Undertaking ('LUT') without payment of IGST to claim refund of utilized input tax credits (refund option).

Export of goods under LUT

Section 54(3) (i) of the CGST Act provides that a registered person may claim refund of unutilized input tax credit (ITC) for zero- rated supply made without payment of tax. The refund application may be made for each tax period. The said section comes with some of the restriction which are enumerated below.

(i) Provided further that no refund of unutilized input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty

(ii) Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or services or both of drawback in respect of central tax and claims refund of the integrated tax paid on such supplies. Accordingly, if the goods which are exported as subject to export duty or any drawback is to be claimed on such exerts, refund of utilized ITC may not be available

FURTHER, it is pertinent to note that, refund of utilized ITC has to be computed as per the method prescribe under Rules 89 (4) of the CGST Rules. The same is reproduced below.

Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC/Adjusted Total Turnover

Where, -

(A) "Refund amount" means the maximum refund that is admissible.

(B) "Net ITC" means input tax credit availed on imputes and input services during the relevant period other than the input tax credit availed for which refund is claimed under sub- rules (4A) or (4B) or both.

" Turnover of zero-rated supply of goods" means the value of zero-rated supply of services made without payment of tax under bond or letter of undertaking or the value which is 1.5 times the value of like goods domestically supplied by the same or, similarly placed, supplier, as declared by the supplier, whichever is less, other sub-rules (4A) or (4B) or both.

> Export of goods on payment of IGST

Any person availing option to export goods on payment of IGST is not required to file separate application for refund. Folling procedure is to be complied with for export of goods on payment of IGST:

(a) A registered person is required to file shipping bill showing prescribed details.

(b) Details or goods exported as to be reported in Table 6A of Form GSTR - 1

(c) The amount disclosed inGSTR-3B should not be less than the same shown in GSTR -1

Upon matching the above details on the GSTIN and ICEGATE portal, the refund of IGST paid would automatically be get credited to the bank account of the exporter. Accordingly, a registered person is required to take utmost care at the time of uploading exports details at the time of filling GST returns.

GST Rate on services

  GST@ 0% ON SERVICES

(1) Carrying out an intermediate production process as job work in relation to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fiber, fuel, raw material or other similar products or agricultural produce.

(2) Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fiber, fuel, raw material or other similar products or agricultural produce by way of -----------------------

(a) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce.

(b) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and make it only marketable for the primary market. Renting or leasing of agro machinery or vacant land with or without a structure incidental to its use

(c) loading, unloading, packing, storage or warehousing of agricultural produce.

(d) Agricultural extension services.

(3) Services by a foreign diplomatic mission located in India 

(4) Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables.

(5) Services provided by the National Centre for Cold Chain development under the Ministry of Agriculture, Cooperation and Farmer's welfare by way of cold chain knowledge dissemination

(6) Services by a foreign diplomatic mission located in India

(7) Services provided by the Central Government, State Government, Union territory or local authority by way of assignment of right to use any natural resource where such right to use was assigned by the Central Government, State Government, Union territory or local authority before the 1st of April 2016; Provided that the exemption shall apply only to tax payable on one time charge payable. In cull upfront or in installments, for assignment of right to use such natural resource.

(8) Services provided by the Central Government, state Government, Union territory by way of deputing officers after office hours or on holidays for inspection or container stuffing or such other duties relation to import export cargo on payment of Merchan Overtime charges.

(9) Taxable services provided or to be provided, by a Technology Business Incubator or a science and Technology Entrepreneurship Park recognized by; the National Science and Technology Entrepreneurship Development Board of the Department of Science and Technology, Government of India or bio-incubators recognized by the Biotechnology Industry Research Assistance Council, under the Department of Biotechnology, Government of India.

(10) Services by an organizer to any person in respect of a business exhibition held outside India

(11) Services by way of collecting or providing news by an independent journalist, press Trust of India or United News of India

(12) Services provided by the Goods and Services Tax Network to the Central Government or State Governments or Union territories for implementation of Goods and Services Tax

(13) Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India

(14) Services of public libraries by way of lending of books, publications or any other knowledge- enhance content or material.

(15) Services by way of sponsorship of sporting events organized - 

(a) by a national sports federation, or its affiliated federations, where the participating teams or individual represent any district, State, zone or Country.

(b) by the Central Civil Services Cultural and Sports Board.

(c)  as part of national games, by the Indian Olympic Association; or under the panchayat Yuva Kreed Aur keel Abhiyaan scheme.

(d) by association of Indian Universities, Inter- University Sports Board, Schol games Federation of India, All India Sports Council for the Deaf, Paralympic committee of India or Special Olympics Bharat.

(16) Services provided by the Central Government, State Government, Union territory or local authority by way of assignment of right to use natural resources to an individual farmer for cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fiber, fuel, raw material or other similar products.

(17) Services by a specified organization in respect of a religious pilgrimage facilitated by the Ministry of External Affairs, the Government of India, under bilateral arrangement.

(18) Services provided by the Central Government, State Government, Union Territory or local authority by way of issuance of passport, visa, driving license, birth certificate or death certificate.

(19) Services provided by the Central Government, State Government, Union territory or local authority by way of issuance of passport, visa, driving license, birth certificate or death certificate.

(19) Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmers, except Executive Development program: -

(a) two-year full time post Graduate Programs in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of common Admission Test (CAT) conducted by the Indian Institute of Management.

(b) five-year integrated programmer in Management.

(c) fellow program me in Management.

(20) Services provided to a recognized sports body by -------

(a) an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body'

(b) an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body.

(21) Services provided - (a) by an educational institution to its students, faculty and staff.

(b) to an educational institution, by way of (1) transportation of students, faculty and staff. (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory. (iii) security or cleaning or house- keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by such institution; up to higher secondary:

Provided that mothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.

(22) Services by an artist by way of a performance in folk or classical art forms of MUSIC, DANCE, & THEATRE if the consideration charged for such performance is not more than one lakh and fifty thousand rupees:

Provided that the exemption shall not apply to service provided by such artist as a brand ambassador.

Services by way of - (a) health care services by a clinical establishment, an authorized medical practitioner or paramedics. (b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above

Service by an unincorporated today or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution (1) up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in housing society or a residential complex.

Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo.

Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets.

Services provided by operators of the common bio-medical waste treatment facility to a clinical establishment by way of treatment or disposal of bio- medical waste or the processes incidental thereto.

Services by the Central Government or State Government or any local authority by way of any activity in relation to a function entrusted to a panchayat under article 243G of the Constitution is neither a supply of goods not a supply of service

Services provided to a foreign diplomatic mission or consular post in India or for personal use or for the use of the family members of diplomatic agents or career consular officers posed therein, is exempt by way of refund.

Services by way of training or coaching in recreational activities relating to: (1) sport by charitable entities registered under section 12AA of the Income -tax Act. & arts or culture

Services by way of right to admission to 

(a) circus, dance, or theatrical performance including drama or ballet.

(b) award function, concert,pageant,musical performance or any sporting event other than a recognized sporting event.

(c) recognized sporting event, where the consideration for admission is not more than Ts 250 per person as referred to in (a), (b) and (c) above.

GST on Services @ 5% with ITC of input services

(1) Transport of goods in a vessel

(2) Transport of passengers by rail in first class or air-conditioned coaches

(3) Transport of passengers by air in economy class

(4) Leasing of aircrafts by a scheduled airlines for scheduled operations 

(5) Transport of passengers, by air, embarking from or terminating in a Regional Connectivity Scheme Airport

(6) Transport of goods in a vessel

(7) Services provided by foreman of chit fund in relation to chit

GST on Services @ 5% No ITC 

(1) Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use)

(2) Renting off motor cab where the cost of fuel is included in the consideration charged from the services recipient

(3) Transport of passenger, by---- (a) air-conditioned contract carriage other than motor cab;(b) radio taxi (c) air-conditioned stage carriage.

(4) Supply of tour operators' services

GST on Services @ 5% 

(1) Selling of space for advertisement in print media

(2) Services by way of job work in relation to -------------------------------------

(a) Cut and polished diamonds; precious and semi-precious stones; or plain and studded jewellery of gold and other precious metals, falling under Chapter of HSN.

(b) Processing of hides, skins and leather falling under Chapter 41 of HSN

(c) Printing or newspapers.

(d) Textile yarns (other than of man-made fibers) and textile fabrics.

(e) printing of books (including Braille books), journals and periodicals.

GST on Services @ 12% 

(a) Supply of food/drinks in restaurant not having facility of air-conditioning or central heating at any time during the year and not having license to serve liquor

(b) Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of goods tother than Information Technology software.

(c) Accommodation in hotels,inns,guest house, clubs, composites or other commercial places meant for residential or loading purposes having room tariff Rs. 1000 and above but less than Rs. 2500 per room per day

(d) Transport of passengers by air in other than economy class.

(e) Transport of goods in containers by rail by any person other than Indian Railways.

GST on Services @ 12% with ITC of input services

(a) Services provided by foreman of chit fund in relation to chit

GST on Services @ 12% with no refund of accumulated ITC

(a) Construction of a complex, building, civil structure or a part thereof, intended for sale to a buyer, wholly or partly (the value of land is deemed to be one-third of the total amount charged for such supplies)

GST on Services @ 18% 

(a) Bundled service by way of supply of foods or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, Andal, shamiana or any other place, specially arranged for organizing a function) together with renting or such premises

(b) Services by way of admission to exhibition of cinematograph films where price of admission ticket is one hundred rupees or less.

(c) Supply of Food/drinks in restaurant having license to serve liquor

(d) supply of food/drinks in restaurant having facility of air-conditioning or central heating at any time during the year

(e) Supply of Food/drinks in outdoor catering

(f) Accommodation in hotels, inns, guest houses, clubs, composites or other commercial places meant for residential or loading purposes where room tariff or Rs 2500/-and above but less than Rs 7500 per room day

(g) Services by way of admission or access to circus, India classical dance including folk dance, theatrical performance, drama

(h) Composite supply of Works contracts as defined in clause 119 of section 2 of CGST Act

(I) All other services not specified elsewhere

GST on Services @ 28% 

(a) Services provided by a race club by way of totalizator or a license to book maker in such club

(b) Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, go-carting, casinos, racecourse, ballet, any sporting event such as India premier League and the like

(c) Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or loading purposes, where room rent is Rs 8000/- and above per day per room

(d) Gambling