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[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 06/2026-Central Tax (Rate)
New Delhi, the 27^th^ October, 2026
G.S.R......(E).- In exercise of the powers conferred by sub-sections (1), (3), and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), number 11/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number G.S.R. 690(E), dated the 28th June, 2017, namely:-
In the said notification, -
(i) against serial number 7, in column (3), -
(A) against item (i), in column (5), the following entry shall be substituted, namely: -
“Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. hotel accommodation service procured from another supplier of hotel accommodation service), has not been taken [Please refer to Explanation No. (iv)].
Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken.
Illustration: ‘A’ books a hotel accommodation from ‘B’ for ₹7,000 per unit per day. ‘B’, for supplying the said service, procures hotel accommodation service from another supplier ‘C’ for ₹10,000 per unit per day. ‘C’ charges ‘B’ central tax at the rate of 9% (₹900). ‘B’ charges ‘A’ central tax at the rate of 2.5%, ‘B’ shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of ₹250 (2.5% of ₹10,000) and not ₹900.”;
(B) against item (ii), in column (5), the following entry shall be substituted, namely: -
“Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of restaurant service other than at specified premises), has not been taken [Please refer to Explanation No. (iv)]”;
(C) against item (iii), in column (5), the following entry shall be substituted, namely: -
“Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of inputs and input services in the same line of business (i.e. supply of goods, being food or any other article for human consumption or any drink, whether in trains or at platforms, procured from Indian Railways or IRCTC or their licensees), has not been taken [Please refer to Explanation No. (iv)]”;
(D) against item (iv), in column (5), the following entry shall be substituted, namely: -
“Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. Outdoor catering service procured from another supplier of outdoor catering service), has not been taken [Please refer to Explanation No. (iv)]
Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken.”;
(E) against item (v), in column (5), the following entry shall be substituted, namely: -
“Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. outdoor catering service procured from another supplier of outdoor catering service), has not been taken [Please refer to Explanation No. (iv)]
Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken.
Illustration: ‘A’ engages ‘B’ for a composite supply of outdoor catering together with renting of premises at premises other than specified premises, for a wedding function for ₹1,00,000. ‘B’, for supplying the said service, engages ‘C’, another outdoor catering service provider, for ₹60,000. ‘C’ charges ‘B’ central tax at the rate of 9% (₹5,400). ‘B’ charges ‘A’ central tax at the rate of 2.5% (₹2,500), ‘B’ shall be entitled to take input tax credit on the input service in the same line of business, i.e. outdoor catering service supplied by ‘C’, only to the extent of ₹1500 (2.5% of ₹60,000) and not ₹5,400.”;
(ii) against serial number 8, after item (via) in column (3) and the corresponding entries relating thereto in columns (4) and (5), the following shall be inserted, namely: -
| (3) | (4) | (5) |
|---|---|---|
| “(vib) Transport of passengers by any electrically operated vehicle designed to carry passengers where the cost of battery charging is included in the consideration charged from the service recipient. | 2.5 | Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service of transportation of passengers in an electrically operated vehicle or service of renting of an electrically operated vehicle, procured from another service provider), has not been taken. [Please refer to Explanation No. (iv)]
Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken. Illustration: ‘A’ engages ‘B’ for transportation of passengers from New Delhi to Gaya in an electrically operated vehicle for Rs. 1000. ‘B’, for supplying the said service, hires an electrically operated vehicle with operator from ‘C’ for Rs. 800.‘C’ charges ‘B’ central tax at the rate of 9% (Rs. 72). If ‘B’ charges ‘A’ central tax at the rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 72. |
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| 9 | -”; | |
