Exemptions from IVF and the tax on honoraria paid to guest anchors may soon be clarified by the GST Department.


Exemptions from IVF and the tax on honoraria paid to guest anchors may soon be clarified by the GST Department

A number of clarifications regarding tax rates, such as exemptions for assisted reproductive technology (ART) or in vitro fertilisation (IVF), as well as the application of GST on the payment of honoraria to guest anchors, may shortly be released by the GST department.

The GST Council has been advised by a group of tax officials from the federal government and the states known as the Fitment Committee that ART/IVFs and healthcare services performed by clinical facilities, licenced physicians, or paramedics are exempt from the Goods and Services Tax regime.

Infertility is a condition that is treated using ART methods like IVF. The fitment committee stated that such services are encompassed under the definition of healthcare services for the purposes of the aforementioned exemption notification, adding that clarification may be provided in response by way of a circular.

A clarification on the topic of the application of GST on payment of honoraria to the guest anchors is also included in the committee's recommendations, which will be presented at the GST Council meeting on June 28–29.

Every time the Council meets the committee analyses stakeholder requests and makes a proposal about tax rates.

Since some of the guest anchors have demanded payment of GST at the rate of 18% on the honorarium provided to them for such appearances, the panel has received requests for clarification.

It has been noted that unless exempt or designated as "no supply," the supply of all products and services is taxable.

In place of an honorarium, the guest anchors' services would be subject to GST responsibility.

"However, the service provider's overall turnover threshold exemption cap would be in effect. If the threshold exemption limit for services is exceeded, liability would result "It added that clarification might be made in accordance with that.

Currently, organisations that provide services must register with the GST if their total annual revenue exceeds Rs. 20 lakh (for states in the regular category) and Rs. 10 lakh (for special category states).

The committee has also recommended clarification about whether selling advertising space in souvenirs would be subject to a 5% or 18% tax rate.

The selling of ad space in print media, according to the fitting committee, is subject to a 5% tax. It stated that the stated position in the GST law is clarified in accordance with the operations carried out by various institutions/organizations toward the selling of space for advertisement in souvenirs that would be subject to a 5% tax.

The group presented a case for lowering taxes on ostomy appliances from 12% to 5% while still recommending the status quo for GST rates on 113 commodities and 102 services.

Additionally, it was suggested that the current differential tax rates of 12 and 5 per cent be reduced to a uniform 5 per cent for prosthetics (artificial limbs), orthoses (splints, braces, belts, and callipers), and orthopaedic implants (trauma, spine, and arthroplasty implants in the body).

Additionally, the committee proposed that the GST rate for rides on ropeways be lowered from 18% to 5%. In September of last year, ITC, Himachal Pradesh submitted this recommendation to the GST Council.

A clarification on the GST rates for electric vehicles will also be made, stating that all EVs, battery-equipped or not, will be subject to a 5% tax.

The GST Council has been advised by the committee to postpone making a decision regarding the taxability of cryptocurrencies and other virtual digital assets. It was stated that legislation governing cryptocurrencies is anticipated and that it would be crucial to identify all relevant supplies connected to the crypto ecosystem, regardless of whether they are classified as goods or services.

The committee believed that a more thorough investigation of the problems related to the crypto environment was required. It was determined that Haryana and Karnataka would research all relevant information and provide a document to the fitment committee as soon as possible.

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