CBIC issues Explanatory Notes to the Scheme of Classification of Services
The classification scheme applicable for services under GST as available on the CBIC website is being relied upon by companies for determination of GST rates in the various rates notifications. This classification scheme released is based on the National Product Classification for Services sector pertaining to National Statistical Organisation which in turn is based on the Central Product Classification (“CPC”) of the United Nations (“UN”) adopted in India.
The CPC of the UN contains explanatory notes which aid in determination of appropriate classification of services. However, no such guidelines were prescribed under GST leading to confusion in case of classification of certain services. NASSCOM had asked for detailed explanatory notes so as to avoid ambiguities.
CBIC has now issued the attached explanatory notes in relation to the scheme of classification of services under the GST regime. The said explanatory notes are modified version of United Nations Central Product Classification. This would be a useful guide towards ascertaining the correct classification/sub-classification of services, where there is no clarity based on reading of the heading.