Applicability of GST On Priority sector lending certificate arises due to on supply of goods and services GST Is applicable. Point is whether PSLC is Goods or Services ? As per section 2(52) of CGST act, goods means every kind of movable property other than money and securities but includes actionable claims, growing crops and things attached to earth or forming part of earth. GST department received representation for applicblity of GST On Priority Sector Lending. In committee of GST Councile it is clarified that GST on PSLC period 1.7.2017 to 27.05.2018 will be paid by the seller bank on forward charge basis and GST rate of 12% will be applicable on the supply,” the Board said.
F. No. 354/124/2018-TRU Government Of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs
New Delhi, 12th September, 2018 To The Principal Chief Commissioners / Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All). Madam/Sir, Subject: Levy of GST on Priority Sector Lending Certificates (PSLC) – regarding Representations have been received requesting to clarify the following: (i) Mechanism for discharge of tax liability on trading of Priority Sector Lending Certificate (PSLC) for the period 1.7.2017 to 27.5.2018. (ii) GST rate applicable on trading of PSLCs. 2. The representations have been examined. With the approval of the GST Implementation Committee of the GST Council, it is clarified that GST on PSLCs for the period 1.7.2017 to 27.05.2018 will be paid by the seller bank on forward charge basis and GST rate of 12% will be applicable on the supply. 3. Difficulty, if any, in the implementation of this circular may be brought to the notice of the Board immediately.