In exercise of the powers conferred by sub-section (1) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and sub-section (1) of section 16 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017), the Government of Kerala, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments to the notification issued under G. O.(P) No. 72/2017/TAXES dated 30th June, 2017 and published as S.R.O. No. 370/2017 in the Kerala Gazette Extraordinary No. 1360 dated 30th June, 2017, namely:

In the said notification, in the TABLE,-

(i) against serial number 3, in column (3), in item (vi), for the words "Services provided", the words "Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, (Central Act 12 of 2017)" provided shall be substituted;

(ii) against serial number 7,-

(a) for item (i) in column (3) and the entries relating thereto in columns (3), (4) and (5), the following item shall be substituted, namely:-

(b) for item (iii) in column (3) and the entries relating thereto in columns (3), (4) and (5), the following item shall be substituted, namely:-

(c) the item (iv) in column (3) and the entries relating thereto in columns (3), (4) and (5) shall be omitted;

(d) in item (ix), in column (3), for the existing entry, the following entry shall be substituted, namely:

"(ix) Accommodation, food and beverage services other than (ii), (iii), (v), (vi), (vii) and (viii) above.

Explanation,- For the removal of doubt, it is hereby clarified that, supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent shall attract central tax @ 2.5 per cent without any input tax credit under item (i) above and shall not be levied at the rate as specified under this entry.";

(iii) against serial number 26, in column (3), in item (i), after sub-item (h), the following sub-item shall be inserted, namely:-

'(i) manufacture of handicraft goods.

Explanation,- The expression "handicraft goods" shall have the same meaning as assigned to it in the notification No. 32/2017 Central Tax, dated the 15th September, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number GS.R. 1158 (E), dated the 15 th September, 2017 as amended from time to time.'.

By order of the Governor,

Minhaj Alam,

Secretary to Government.

Explanatory Note

(This does not form part of the notification, but is intended to indicate its general purport.)

Pursuant to the decision taken in the 23 rd Goods and Services Tax Council Meeting, Government of Kerala have decided to rationalize the tax rate on intra-State supplies of food and beverages restaurants as:

(i) all restaurants irrespective of whether air-conditioned or otherwise, including restaurants in hotel premises having room tariff of less than Rupees 7,500 per unit per day will be taxable at the rate of 2.5 per cent without input tax credit; and,

(ii) all other such supplies including out door catering, and restaurants in hotel premises having room tariff of Rupees 7,500 and above per unit per day at the rate of 9 per cent with full input tax credit.

Further the Government have decided to reduce the tax rate on job work services in relation to the manufacture of those handicraft goods in respect of which the casual taxable person has been exempted from obtaining registration to 5 per cent with full input tax credit.

The notification is intended to achieve the above object.