This, along with a number of tax changes, will come into effect from the New Year effective January 1, after notifications by the Central Board of Indirect Taxes and Customs (CBIC).

These come following the decisions taken in the 48th meeting of the GST Council.

The proprietor would, however, have to pay GST on reverse charge mechanism basis at the rate of 18% if the accommodation is used for his proprietary concern.

“For the purpose of exemption… this entry shall cover services by way of renting of residential dwelling to a registered person where the registered person is proprietor of a proprietorship concern and rents the residential dwelling in his personal capacity for use as his own residence; and such renting is on his own account and not that of the proprietorship concern,” said the CBIC, adding that this will come into effect from January 1, 2023.

The CBIC also notified lower GST rate of 5% for ethyl alcohol supplied to refineries for blending with motor spirit (petrol), effective January 1.

The GST Council had decided to reduce the rate from the earlier 18%.

The GST on husks of pulses, including chilka and concentrates, including chuni/churi, khandahas, has been cut to nil from the earlier rate of 5%.

It has also prescribed 12% GST on ‘Fruit pulp or fruit juice based drinks’ (other than carbonated beverages).

Further, it has brought mentha arvensis under the reverse charge mechanism as has been done for Mentha Oil.

Over the course of last week, the CBIC has issued a number of circulars, including those related to GST on input tax credit and recovery of dues during insolvency proceedings based on the decisions of the GST Council.

Further clarification, following a key decision on a uniform definition of sports utility vehicles for the purpose of compensation cess of 22% is still awaited.