CGST rate on Financial and related services [Heading 9971]

15 - Heading 9971 (Financial and related services)

Description of Service (3)	Rate % (4)	Condition (5)
[1][***	**	**]
(ii) Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration.	Same rate of central tax as on supply of like goods involving transfer of title in goods.	-]
(iii) Any transfer of right in goods or of undivided share in goods without the transfer of title thereof.	Same rate of central tax as on supply of like goods involving transfer of title in goods	-]
[2][(iv) ***	**	**]
[3][(v) Leasing of motor vehicles purchased and leased prior to 1st July 2017;	65 per cent of the rate of central tax as applicable on supply of like goods involving transfer of title in goods. Note: - Nothing contained in this entry shall apply on or after 1st July, 2020.	-]
[4][(vi) Service of third party insurance of “goods carriage”	6	-]
[5][(vii) Financial and related services other than [6][] (ii), (iii), [7][], (v) and (vi) above.	9	-]

[1] Omitted by Notification No. 03/2022-Central Tax (Rate) dt 13-07-2022 wef 18-07-2022. Earlier inserted by Notification No. 11/2017-Central Tax (Rate) dt. 28-06-2017 wef 01-07-2017 read as

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

Explanation.-

(a)"chit" means a transaction whether called chit, chit fund, chitty, kuri, or by whatever name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead) by way of periodical instalments over a definite period and that each subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to a prize amount;

(b)“foreman of a chit fund” shall have the same meaning as is assigned to the expression “foreman” in clause (j) of section 2 of the Chit Funds Act, 1982 (40 of 1982).

Provided that input tax Charged on goods used in supplying the service has not been taken [Please refer to Explanation no. (iv)]

[2] Entry omitted by Notification No. 20/2019-Central Tax (Rate) dt 30-09-2019 wef 01-10-2019. Earlier inserted by Notification No. 11/2017-Central Tax (Rate) dt. 28-06-2017 wef 01-07-2017 as

(iv) Leasing of aircrafts by an operator for operating scheduled air transport service or scheduled air cargo service by way of transaction covered by clause (f) paragraph 5 of Schedule II of the Central Goods and Services Act, 2017.

Explanation.-

(a) “operator” means a person, organisation or enterprise engaged in or offering to engage in aircraft operations;

(b) “scheduled air transport service” means an air transport service undertaken between the same two or more places operated according to a published time table or with flights so regular or frequent that they constitute a recognisable systematic series, each flight being open to use by members of the public;

(c) “scheduled air cargo service” means air transportation of cargo or mail on a scheduled basis according to a published time table or with flights so regular or frequent that they constitute a recognisably systematic series, not open to use by passengers.

2.5

Provided that credit of input tax charged on goods used in supplying the service has not been taken. [Please refer to Explanation no. (iv)

[3] Inserted by Notification No. 31/2017-Central Tax (Rate) dt 13-10-2017.

[4] Inserted by Notification No. 27/2018-Central Tax (Rate) dt. 31-12-2018 wef 01-01-2019. I

[5] Substituted by Notification No. 27/2018-Central Tax (Rate) dt. 31-12-2018 wef 01-01-2019. Earlier

2) Substituted by Notification No. 31/2017-Central Tax (Rate) dt 13-10-2017 as

(vi) Financial and related services other than (i), (ii), (iii), (iv), and (v) above.

1) Inserted by Notification No. 11/2017-Central Tax (Rate) dt. 28-06-2017 wef 01-07-2017 as

(v) Financial and related services other than (i), (ii), (iii), and (iv) above.

[6] Words “(i),” omitted by Notification No. 03/2022-Central Tax (Rate) dt 13-07-2022 wef 18-07-2022.

[7] Words (iv) omitted by Notification No. 20/2019-Central Tax (Rate) dt 30-09-2019 wef 01-10-2019.

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CGST Rate on supply of services [Section 9(1) of CGST Act]

CGST rate on Financial and related services [Heading 9971]