Applicability of GST Amendments on BD Products & Services of DOP | DoP BD Lr No: 22-01/2017-18/BDMD (GST) dated 31.05.2023

I/73497/2023

No: 22-01/2017-18/BDMD (GST) dated 31.05.2023

22-01/2017-18/BD&MD(GST)

Ministry of Communications Department of Post 

Business Development Section

Dak Bhawan, New Delhi-110001

dated 31.05.2023

To
All CPMGs

Subject: Applicability of GST Amendments on BD Products & Services of DOP-reg. 

Reference: Letter no. PA/Accts/GST/2022-23/2629-88 dated 20.7.2022 

Revenue Secretary DO letter no. CBIC-190354/174/2022-TO(TRU-II) dated 12.7.2022

Various Circles had sought clarification on the applicability of GST Amendment as communicated vide letter referred above on the BD products & Services of the DOP. The matter was taken up with the CBEC through PA Wing of Postal Directorate.

2. In this regard, kindly find enclosed a copy of letter no. PA/ Accounts/ GST/2022-23/6470 to 6518) dated 12.5.2023 received from Postal Accounts Wing, Dak Bhawan vide which they have communicated clarification of Central Board of Indirect Taxes and Customs (CBIC) received vide their CBIC-190354/323/2022-TRU Section -CBEC dated 24.4.2023 (copy enclosed).

3. In the ibid letter from CBIC, it is restated that specified services of the Department of Posts, namely services of Post card, Inland card, book Posts and ordinary Posts (envelopes weighting less than 10 grams) are exempted from GST irrespective of whether they are supplied to Central, State Government, business entities or individuals. All other services of DoP (including POPSK & IPRS) are taxable with tax on such services required to be paid by DoP under forward charge mechanism irrespective of whether they are supplied to Central or State Govt, business entities or individuals.

4. This implies that all BD products and services of DOP will be subject to forward charge basis payment of GST irrespective of whether they are supplied to Central or State Govt, business entities or individuals.

5. In view of the above, it is requested to issue necessary instructions to all the units under control for implementing aforesaid GST amendments for all BD products.

This issues with the approval of the Competent Authority.

Encl- As above.
31-5-23
(Preeti Agrawal)
Addl. GM (BD)

GM (Admn. & BD) Dy. No. 1236. IN... ....5./.5./.2.3.. OUTS/5/2.3....

No. PA/Accounts/ GST /2022-23/6470 to 6518

Government of India

Ministry of Communications Department of Posts, (Postal Accounts Wing) Dak Bhawan

New Delhi - 110001

Dated 12/05/2023

Sub: Amendments in GST applicability on the services provided by the DoP-reg.

Ref: Letter of even no. dated 20-07-2022 and 25-01-2023

It is to inform that clarification sought by the various divisions of Postal Directorate was taken up by with the CBEC. Now, CBEC has provided their clarification vide their CBIC-190354/323/2022-TRU Section-CBEC dated 24.04.2023 (enclosed herewith).

2 This is for your information and necessary action at your end.

This issues with the approval of the Competent Authority.

Encl.: As above

All the DDSG/GMs

Copy to for information:

1. Sr. PPS to Member (Operation)

2. All the CPMSG

3. All General Manager (F) / Director of Accounts (Postal)

(S K Pandey) Director (Accounts)

Dy. No..

Additional General Manager (BD) 514 15/5/23 1405/23.

T

CBIC-190354/323/2022-TRU Section-CBEC

Government of India

Ministry of Finance Department of Revenue (Tax Research Unit)

******

Room No. 156, North Block,

New Delhi, Dated 24th April, 2023

OFFICE MEMORANDUM

Subject: Amendments in GST applicability on the services provided by the DoP -reg.

The undersigned is directed to refer Department of Posts' letters dated 14.02.2023 and 07.03.2023 requesting clarification on the above captioned subject.

2. The information has already been conveyed vide D.O.F.No.CBIC- 190354/174/2022-TO (TRU-II) dated 12.07.2022. [Copy enclosed]. It is reiterated that with effect from 18.07.2022, specified services of Department of Posts, namely services of post card, inland letter, book post and ordinary post (envelopes weighing less than 10 grams) are exempt from GST irrespective of whether they are supplied to Central entities All businesses or individuals. Government, State other services of Department of Posts are taxable with tax on such services required to be paid by Department of Posts under forward charge mechanism irrespective of whether they are supplied to Central or State Government, business entities or individuals. Department of Posts may refer to entry 8 of notification 12/2017-CT(R) and entry 5 of notification 13/2017-CT(R) dated 28.06.2017 as amended by notification 04/2022-CT(R) dated 13.07.2022 and 05/2022-CT(R) dated 13.07.2022. [Copy enclosed].

3. The FAQs being referred by Department of Posts was issued prior to the amendments notified by notification no. 04/2022-CT(R) and 05/2022-CT(R) both dated 13.07.2022. Hence, reference to such FAQ is not relevant to the extent modified by later notifications.

4. As regards taxability of various services supplied by DoP including the services supplied by Post Office Passport Seva Kendra (POPSK) and India Post Passenger Reservation System (IPPRS Department of Posts may take a view on in light of the above. If any doubts still persist, DoPT may call or meet the undersigned or Sh. Pramod Kumar (Director, TRU-II) on 011-23095522 /9990187353.

Enclosures: As above

Department of Posts, Ministry of Communications

Director General (Accounts)

{Sh. Saurabh Deshmukh}

(Rahul Kumar)

Technical Officer, TRU

011-2309 5547