Eee Mccann After studying this chapter, you shall beable to understand the following: «Legal Framework regarding exemptions Features of Exemptions in GST Types of Exemptions @ Absolute Exemption © Conditional Exemption ¢ Full Exemption Partial exemption Goods exempted from GST 4 Services exempted from GST EXEMPTIONS FROM GST 6.1 INTRODUCTION In any statute, the provisions cannot be made applicable to each and every segment and level of the society with the same stick. In order to regulate and manage the economy and to achieve the various social and economic objectives, relaxations are required to be given. This relaxation may be in monetary terms or in non-monetary terms. For example: if'a small taxpayer is allowed to file return on quarterly basis rather than on monthly basis, itis definitely a relaxation but isnon-monetary. On the other hand, when relaxationis given by lowering the tax rate or by not taking any tax, then this monetary relaxation is called as exemption. So, basically an exemption is a freedom from obligation which the person, who has been exempted, is otherwise liable to discharge. Under the GST laws also, there are exemptions notified by the Government in respect of liability of GST. This chapter is devoted to study various dimensions of exemptionsavailable under GST laws regarding supply of goods and/or services 6.2 LEGAL FRAMEWORK een granted The power to grant exemption from GST has tion 6 of the vide section 11 of the CGST Act and vide IGST Act. State GST laws also contain identical provisions granting power to exempt SGST. 6.3 TAXABLE SUPPLY & NON-TAXABLE SUPPLY Taxable supply: When a supply of goods and/or services falls within the purview of charging section, it is chargeable to GST. It is called as taxable supply 6.1 oNNVINXVAIy. Non-taxable 1 ability of neans the taxay . Th non-taxable supp! bout levy and li 6.4 EXEMPTION IN GST: CONCEPT AND FEATURES Iv only. When the person is liable to disc! given treedo; avable in case of taxable suppl » that person is otherwise li e salient features of exemptions wavs given under the provisions of x. he power to evemptisal vunder the provisions ‘al power of the Government rather it needs specific empowe GST. section 11 gives power to Government in this regard (2) Objective of granting exemption: The exemptions are issued in public interest. Tt means ini ‘authorities to attain the various social and economic objectives goods have been exempted on this ground. (3) Discretionary Power: The power of granting exemption is a discretionary power Jer the law. It means exemption may be given to one category ang gory. One cannot challenge this differentiation before the court rv (4) Power to withdraw: The power to exempt includes the inherent power to withdraw the emption. It means the exemption once given is not the permanent feature. Rather, i withdrawn in the event of change in circumstances. (5) Burden of Proof: An assessce, claiming exemption, must establish that he is eligible fo exemption. It means the assessee will not get any benefit in case of ambiguity. The onus on the assessee for the eligibility of exemption. (6) Prior Recommendation of Council: Under GST laws, if Government is satisfied that it is necessary in the public interest so to do, it may grant exemption. But, this exemption mav b granted by Government on the recommendation of GST Council. 6.5 TYPES OF EXEMPTIONS The section 1] of CGST Act, 2017 confers powers on the government to exempt any supply of goods and/or services either absolutely or conditionally. Therefore, the exemptions may be of two t pe (a) Absolute exemption () Conditional Exemption (a) Absolute Exemption: It is the exemption which would be in respect of goods or services 0: both but not in respect of a specific class or classes of persons and is available without an* condition. Again, itis important to note that no condition is being attached with the absolute exemption. For example : when an exemption is granted in respect of “Supply of water’, thet it is absolute exemption as there is no condition attached to it regarding price limitation classes of supplicrs, classes of recipients etc. Any taxable person, involved in this exempted uppls, would be entitled to exemption. (b) Conditional Exemption: It is the cxemption which is granted on supply of specific goods and or services but is subject to fulfilment of certain conditions, Unlike absolute, this condition exemption is available, but with a condition, For example : If the Government exempts the n supply of “Footwear costing less than % 100", then ment of tax by any taxable person eenTYPES OF EXEMPTIONS Para 6.7 it is a conditional exemption, In th his case wall mo be ata is 8 he con : 1 is more th ) ; limitation is the ce han 2 100, then this exemption ondition .6 EFFECTIVE RATE, FULL AND PARTIAL EXEMPTION a) Effective Rate : The exemption results into lowering is referred to as Effective Rate of tax liability, The net tay alter considerina ex 5) Full Exemption : Where the exemptions given rom the wha services on whic! is levia sericeson which i flevable then tical llr whle exert Fl ae ero effective rate, For example : Under GST, full exemp! ‘ines of goods such as fresh milk, eas, fresh vegetables ete nn en heNstaleines le of the tax leviable, in respect of any goods or ‘c) Partial Exemption: When the Government exe! ie the Government exempts goods or services or both of any specified descriptio part of the tax leviable thereon, it is called as partial exemptior 7 TYPES OF EXEMPTIONS: ON THE BASIS OF MODE OF ISSUE | recommendation of GST council, the Government is empowered to exempt any goods or services by order both, Depending upon the case, this exemption may be given either by notification or by ore “such basis of mode of granting exemption may be of two types : ) General Exemption [Section 11(1)] ) Special Exemption [Section 11(2)] a) General Exemption [By Notification] re the Government is satistied that it is necessary in the public he recommendations of the Council, by notification, exempt such conditions as may be specitied therein, g iption from the whole or any part of the tax leviable specified in such notification As per section 11(1), “Whe interest so to do, it may, on t generally, either absolutely or subject to or services or both of any specified des thereon with effect from such date as may be The analysis of this section reveals that the Government is empow ered to grant exemip from tax, subject to the following conditions: hould be in public Interest. ods ptions (a) The exemption sh (b) It should be by way of issue of notification (c) The Government can notify on the r lation from the council only ecomment: (a) Absolute. Conditional exemption may be for goods and /or services. b) Special Exemption [By Order] ), “Where the Gi he recommendations of t | nature to be st h tax is leviable ry in the public interest case, under at of cess jal order in cac rom paymen overnment is satistied that is ne he Council, by speci As per section 11(2 ated in such order, exempt ! so to do, it may, ont circumstances of an exceptional tax any goods or services or both on whic The following points are noteworthy (a) The special exemption is also ordered in the public Inter! (h) It js also on recommendation: of council- 84 a6.9 EXEMPTIONS FROM GST (0) Itis by special order and not by notification (d) Special exemption is granted under exceptional circumstances, (2) The Government may issue such exemption on a case-to-case basis exempting fron Payment of tax. (A) The circumstances of exceptional nature would also have to be specified in the spec, order. 6.8 DIFFERENCE BETWEEN EXEMPTION U/S 11(1) & 11(2) (he following are the points of differences between the two types of exemptions provided in Sect, 11(1) and section 11(2). 1 Special Exemption | Section 112) Public Interest (+) ci 1. | Governing Section. jection 11(1) cumstances | 2. | Circumstances of Exemptions | Public Interest Mode of Granting Exemption _ Notification 4. | Nomenclature (3. Types of Exemptions ____| Exemption Notifications (E/N) |Full or Partial Exemption Exemption order (E/O) | 6 Date of Exemption coming From the date, specified in the no- of exceptional nature Special order Full Exemption No specific Legal Provision into force 6.9 RETROSPECTIVE CLARIFICATION IN EXEMPTION Usually an exemption notification is not amended with retrospective effect. But, sometimes itis found that taxable person gets unintended benefit due to such exemption or thereis some ambiguity in the notification order. The section 11(3) has been inserted to overcome this problem. As per section 11@), “The Government may, if it consider necessary or expedient so to do for the purpose of clarifying the scope or applicability of any notification or order issued, insert an explanation in such notification or order, by notification at any time within one year of issue of the notification or order and every such explanation shall have effects as if it had always been the part of the first such notification or order, as the case may be.” In other words, Section 11(3) of CGST Act provides that (a) The Government may insert an explanation in any notification issued under section 11 (b) For the purpose of clarifying its scope or applicability (c) At any time within 1 year of issue of the notification and (@) Every such explanation shall have effect as if it had always been the part of the first such notification. Effective date of insertion of explanation in notification Vide Circular No. 120/39/2019 GST dated 11-10-2019. The Government has clarified that the & planation having been inserted under section 11(3) of the CGST Act, is effective from the inceptio" of the entry in notification and not from the date from which the notification (that inserted sald explanation) becomes effective. The Principal Notification No. 11/2017 CT(R) dated 28-6-2017 came into force with elles! Thereafter, a new entry [Entry No. 3{vi)] is inserted wef. 21-9-2017, Subsequent iIso inserted with respect to Entry No, 3(vi) on 26-7-2018. Although the eflectiv’ Forexample: from 1-7-2017. an explanation is65 5 G00Ds EXEMPT FROM TAX Peet date mentioned in the notification which ing : will be effective from the incepti ted said explan: . ation is 27-7- aid explana on of entry in notification ie 2192017 aed ey Oa opation 21-9-2017 and not from 27-7-2018, 6.10 NO TAX TO BE COLLECTED IN Excess OF EFFECTIVE RATE As per Explanation to section 11, from the whole or part of the tax supplying such goods or ser such supply of goods or se where an exe i Teviable eacxemPlion in respect of any goods oF services or both taxleviable thereon has been g1 tvices or both shall not collect th vices or both 6.11 GOODS EXEMPT FROM TAX ‘ost net 20 oe notified under section 11(1) of the CGST Act, 2017 and section (1) of the “Act, 2017. These items have been exempted from whole of tax items such as unbranded atta maida/besan, unpacked food grains, milk, eggs, curd, lassi, fresh vegetables, ete, _ importance and to avoid any voluminous book, the complete list of goods ‘ST has not been given in the book. For knowledge purposes, the same may bsite - www.cbec.gov.in. Some of the prominent items exempted from tax Considering the relative that are exempt from Gi be viewed at CBEC we are the following: Edible vegetables, roots and tubers Cereals Fish (not frozen or processed) 4. Fresh fruits & vegetables (Other than frozen or processed) Meat (Other than in frozen state and put up unit containers) 6. ¢ jaggery (ur) 7. Tender coconut water 8. Silkworm laying cocoon 9 Raw silk 10. Silk waste 11. Wool, not carded or combed 12. Cotton used in Gandhi Topi 3. Cotton used in Khadi Yarn 14. Coconut, coir fibre Jute fib 16. Puja sam: ed but not spun 17. Live animals (except horses) 18. All goods of seed quality Coffee beans not roasted 20. Unprocessed green tea leaves Fresh ginger, fresh turmeric (other than in processed form) Human Blood and its components 3. All types of contraceptives 24. Organic manure, other than those b 25. Kumkum, Bindi, Sindur, Alta, 26. Firewood or Fuel wood ing a brand namePara 6.12 EXEMPTIONS FROM GST . Wood Charcoal 28. Betal Leaves 2. Judicial, Non-Judicial Stamp, Court fee stamps etc Postal items like envelope, post card ete, sold by Government Printed books including Braille books, newspaper, maps. Earthen pot and clay lamps Bangles (Except those made from precious metals) Agricultural implements manually operated or animal driven Hand tools 30. Handloom e craft 38. Hearing aids Goods notified as Exempted Goods on 31st December, 2018 Vide Notification No. 25/2018-Central Tax (Rate), dated 31st December, 2018, the Central Governm: notified the following additions in the list of exempted goods: 1 ‘Vegetables (uncooked or cooked by steaming or boiling in water), frozen; V ables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption; Music, printed or in manuscript, whether or not bound or illustrated; 4. Supply of gift items re vived by the President, Prime Minister, Governor or Chief Minister of any State or Union territory, or any public servant, by way of public auction by the Government, where auction proceeds are to be used for public or charitable cause. The above list has been given for knowledge purposes only, 6.12 LIST OF SERVICES GIVEN IN EXEMPTION NOTIFICATION In exercise of the powers conferred by section 11(1) of the CGST Tax Act, 2017, the Central Government, on the recommendations of the Council, has notified services which are exempt from CGST. In this regard, the principal notification was published in the Gazette of India, vide notilica- tion No. 12/2017 - Central Tax (Rate), dated the 28th June, 2017, Similar notifications have been issued under IGST Act and SGST Acts. The following services have been notified by the Central Government in its Principal Notification No. 12/2017 as amended from time to time and up to the latest Notification No. 21/2019-Central Tax (Rate) dated 30th September, 2019, These services have been discussed belows Entry Description of Services 7 areca No. 1 Services by an entity registered under section 128A of the Income-tax Act, 1961 by 7 way of char- itable activities. In order to claim exemption under this head, following two conditions must be satislied:= (i The entity is registered with income tax-authorities under section 12AA of the Income tax Act, 1961, and (Zi) The entity carries out one or more of the specified charitable activities,Description of Services [ Definition of Charitable Activities | As per definition given in paragraph 2 clause (r) of Notification No, 12/2017 Central Tax- Rate dated 281h June 2017, the term “charitable activities” means activities relating 10 | (i) public health by way of, ~ (A) care or counselling of | (I) terminally ill persons or persons with severe physical or mental disability (ID) persons afflicted with HIV or AIDS; (IID) persons addicted to a dependence-forming substance such as narcotics drugs oF | alcohol; or (B) public awareness of preventive health, family planning or prevention of HIV infectior (ii) advancement of religion, spirituality or yoga; | (iif) advancement of educational programmes or skill development r ating to, - (A) abandoned, orphaned or homeless children; (B) physically or mentally abused and traumatized persons; | (C) prisoners; or (D) persons over the age of 65 years residing in a rural area; (iv) preservation of environment including watershed, forests and wildlife, 2 __ Services by way of transfer of a going concern, as a whole or an independent part thereo! T , . " 1 3 Pure services (excluding works contract service on other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity#1 by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or | @ inrelation to any function entrusted to a Municipality under article 243W of the Constitution | #1 [The words “Government Entity” have been inserted vide Notification No. 2/2018-Central Tax (Rate) dated 25th January, 2018] - 3A Composite supply of goods and services in which the value of supply of goods constitutes not more than 28 per cent of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat or in relation to any function entrusted to a Municipality. finserted vide Notification No. 2/2018-Central Tax (Rate) dated 25th January, 2018] 4 Services by Governmental Authority by way of any activity in relation to any function entrust- |ed to a municipality under article 243W of the Constitution are exempt{The words “Central | | Government, State Government, Union territory, local authority” have been omitted vide Notifi- cation No. 14/2018-Central Tax (Rate) dated 26th July, 2018] 5 | Services by a Governmental Authority by way of any activity in relation to any function en- trusted to a Panchayat under article 243G of the Constitution. [The words “Central Government, State Government, Union territory, local authority” have been omitted vide Notification No. | 14/2018-Central Tax (Rate) dated 26th July, 2018] 6 Services by the Central Government, State Government, Union territory or local authority EX- | CLUDING the following services— (a) Services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than the Central Government, State Govern L ment, Union territoryQR subsidiaries directly or indi to be hosted in India. [Inserted vide Notification No. 21/2017-Central Tax (Rate) dated 22nd August, 2017] in French. It FIFA World ly related to any of the events under FIFA U-17 World Cup 2017 ee A | Tutorial Note FIFA stands for "Federation Internationale de Football Association s resp “organizing all major football tournaments like Football World Cup ( Cup) and FIFA Women’s World Cup, . , gaa Services provided by and to “Federation Internationale de Football Assoc subsidiar ies directly or indirectly related to any of the events under FIFA U-17 Wom: Cup 2020 to be hosted in India. tion” (FIFA) and its en's World Conditions to be fulfilled: Director (Sports), Ministry of Youth Affairs has to certify that the services are directly or indirec related to any of the events under FIFA U-17 Women’s World Cup 2020. [Inserted vide Notification No. 21/2019-Central Tax (Rate) dated 30th September, 2019) Tutorial Note: Since FIFA U-17 Women’s World Cup 2020 is to be hosted in India, exemption has been granted to services provided by and to FIFA and its subsidiaries related to any of the events | under this World Cup. Supply of services associated with cargo to Nepal and Bhutan (landlocked countries) 3B [Inserted vide Notification No. 30/2017-Central Tax (Rate) dated 29th September, 2017] ‘Tutorial Note: Landlocked means the part of the world which does not border any large body of water like an ocean, 9C | The supply of service by a Government entity to Central Gov mnment/State Government/Union Government, etc.). This exemption specified by Central/State territory/any specified person (ie. d from the Central Governme! is available only if consideration is receive the form of grants. [Inserted vide Notification No. 32/2017-Central | Tax (Rate) dated 13th October, 2017] 9D Services by an old age home run by Central Government, State Government or by an entity reg wetered under section 12AA of the Income-tax Act, 1961 to iis residents (aged 60 years or more) sine connidcraiien ute Be 25000 pee ome member, provided that the consideration lL ———C [Inserted vide Notification No. 14/2018-Central Tax (Rate) dated 26th July, 2018) way of pure labour contracts of construction, erection commissioning, in- fitting out, repair, maintenance, renovation, oF alteration of a civil structure pertaining to the beneficiary led individual house construction or for All (Urban) Mission or Pradhan Mantri Awas Yojana. ay of construction, erection, commissionir distribution network upto the tube well of ide Notification No. 14/2018-Central nt/ State Government, ete Services provided by stallation, completion, original works the Housi 10 or any othe! enhancement und 104 Servicessupplied by electricity distribution utilities by w orinstallation of infrastructure for extending electricity the farmer or agriculturalist for agricultural use [inserted vii Tax (Rate) dated 26th July, 2018) _ bour contracts of construction, erecuion, commissionin ng to a single residential unit otherwise than as a part of ng, 12, or installation 11 Services by way of pure lal a residential of original works pertainir complex. Definition of Residential Complex mht 2 clause (zzb) of Notification No. omplex” means any complex comprising dential unit. 72/2017 Central Tax- Rate of a building As per delinition given in paragra lated 28th June 2017, the term “residential or buildings, having more than one sia Vescription of services: | |_No. HA. | Service provided by Fair Price Shops to Central Government by way of sale of wheat | coarse grains under Public Distribution System (PDS) ayainst consideration in the form. | | mission or margin [Inserted vide Notification No. 21/2017-Central Tax (Rate) dated 22nd August, 2017; | MB | Service provided by Fair Price Shops to State Governments or Union territories by way o| | | Kerosene, sugar, edible vil, etc. under Public Distribution System (PDS) against consider, the form of commission or margin. finserted vide Notification No. 21/2017-Central Tax (Ry), dated 22nd August, 2017] 12 _ Services by way of renting of residential dwelling for use as residence 13. | Services by a person by way of- (@) conduct of any religious ceremony; (}) renting of precincts of a religious place meant for general public, owned or manag: entity registered as a charitable or religious trust under section 12AA of the Income 1961 or a trust or an institution registered under section 10(23C)(v) of the Income-tav a body or an authority covered under-section 10(23BBA) of the said Income-tax Act. | Howev nothing contained in entry (b) of this exemption shall apply to- (9 renting of rooms where charges are Rs. 1,000 or more per day; (i) Renting of premises, community halls, kalyanmandapam or open area, and the lik | charges are Rs. 10,000 or more per day; (iti) Renting of shops or other spaces for business or commerce where charges are Rs. 10,009 or more per month. 14 Services by a hotel, inn, guest house, club or campsite, by whatever name called, for resident or lodging purposes, having Value of Supply® of a unit of accommodation below or equal to % 1,000 per day or equivalent, #2 [The words “Value of Supply” have been substituted in place of “ declared tariff” vide Notification No. 14/2018-Central Tax (Rate) dated 26th July, 2018) (#3 [The words “or equal to” have been inserted vide Notification No. 21/2019-Central Tax ___ (Rate) dated 30th September, 2019] | 15 Transport of passengers, with or without accompanicd belongings, by | @) Air, embarking from or terminating in an airport located in the state of Arunachal P | Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at B: in West Beng: jagdogra lox (b) Non-air conditioned contract carriage other than radio taxi, for transport ation of passeny | | excluding tourism, conducted tour, charter or hire: or (©) Stage carriage other than air joned stage carriage Definition of Radio Taxi | As per definition given in paragraph 2 clause (ev) of Notiftcation No. 12/2017 Central Tax. Rat | dated 28th June 2017, the term “radio taxi” means a taxi including a radio cab, by whatever name { called, which is in two-way radiv communication with a central control olfice and is enabled fo" | tracking using the Global Positioning System or General Packet Radio Service § 16 | Services provided to the Central Government, by way of transport of passengers with or without | accompanied belongings, by air, embarking from or terminating at a RCS (Regional Connectivity Scheme) airport, against consideration in the form of viability gap funding. However nothing | contained in this entry shall apply on or alter the expiry of a pe ji of 8 Years from " ns of commenceinent of operations of the regional conncetivity scheme airport ay notified f Civil Aviation. Ministry of Civi ; ne “3 years” have been substituted in place of “ one year” vide Notification ! vord #4 [The wor” Tax (Rate) dated 25th January, 2018] _—_—— . 2/2018-Central Tax (I18 19 19A 19B 19c UST OF SERVICES RVICES Para 6.12 Description of Services Service of transportation of passengers, wth or without (a) Railw: ss other than— () first class; or oe accompanied belongings, by— (ian air-conditioned coach (6) Metro, monorail or tramway (o) Inland waterways; (d) Public transport other th than predomina q located in India; and ieee ier m purpose, in a vessel between places Sa Denton 28th June, 2 Raregraph 2(ep): “Metered Cabr means any contract carriage on which an automatic deve, o we vpe a approved under the relevant rules by the State Transport Authority, is fitted which indicates reading of the fare chargeable at any moment and that is charged accordinsl under the conditions of its permit issued under the Motor Vehicles Act, 1988 (59 of 1988) and th rules made thereunder (but does not include radio taxi). —— a Paragraph 2(za): “E-Rickshaw” means a special purpose battery powered vehicle of power not execeding 4000 watts, having three wheels for carrying goods or passengers, as the case may be for hire or reward, manufactured, constructed or adapted, equipped and maintained in accordance _ with such specif as may be prescribed in this behalf | Services by way of transportation of goods | | | (@) by road except the services of— ()_ a Goods Transportation Agency; (i) acour agency 'b) by inland waterways efi ns as per paragraph 2 of Notification No. 12/2017 CT- Rate dt. 28th June, 2017 | Paragraph 2(ze): “Goods Transport Agency” means any person who provides service in relation to | transport of goods by road and issues consignment note, by whatever name called. Paragraph 2(u):"Courier Agency” means any person engaged in the door-to-door transportation of time-sensitive documents, goods or articles utilising the services of a person, either directly or ctly, to carry or accompany such documents, goods or articles, ind Paragraph 2(2i): “Inland Waterway” means national waterways as defined in clause (It) of 2of the Inland Waterways Authority of India Act, 1985 or other waterway on any inland water, as | ‘ction Services by way of transportation of goods by an aircraft from a place outside India upto the cusioms station of clearance in India. can _ Services by way of transportation of goods by an aircraft from customs station of clearance in India India. This exemption has been granted up to 30th day September, 2021 only toa place outside [As amended up to the latest amendment vide Notification No. 4/2020-Central Tax (Rate) dated | 30th September, 2020) — Services by way of transportation of goods by a vessel [rom customs station of clearance in India toa place outside India. This exemption has been granted up to 30th day September, 2021 only [Asamended up to the latest amendment vide Notification No. 4/2020-Central Tax (Rate) dated | 30th September, 2020] : - a _ | Satellite launch services supplied by Indian Space Research Organisation, Antrix Corporation Limited or New Space India Limited are exempt tification No. 5/2020-CT(R) dated 16-10-2020 w.e.f 16-10-2020] [Inserted by }ra 6.12 EXEMPTIONS FROM GST 612 cary) Daseription of Services No. | a — _ 20. | Services by way Gf transportation by rail or a vessel from one place 18 India to another of i 2 | following goods - ors, calamities, | ran-made disasters, calamitie accidents op | (@) relief materials meant for vietims of natural or | mishap: (b) defence or military equipments; sais lewspaperss (6) newspaper or magazines registered with the Registrar of NewsPar (@) railway equipments or materials; | © agricultural produce: () milk salt and food grain including flours, pulses and rice; and (g)_ organic manure, port in a goods carriage of - Services provided by a goods transport agency, by way of trans (a) agricultural produce; i gC a consignment trans- (6) goods, where consideration charged for the transportation of goods on a consie ans ported in a single carriage does not exceed RS. 1,500; (6) goods, where consideration charged for transportation of all such goods fora single consignee does not exceed Rs. 750; (q) milk, salt and food grain including flour, pulses and rice; | (e) organic manure; (f) newspaper or magazines registered with the Registrar of Newspapers; | @) relief materials meant for victims of natural or man-made disasters, calamities, mishap; ot ccidents or (Ii) defence or military equipments. 2IA Services provided by a goods transport agency to an unregistered person, including an unregistered 21B casual taxable person, other than the following recipients, namely: - | @ any factory registered under or governed by the Factories Act, 1948 (63 of 1948); 0 | (Dany Society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or | (©, any Co-operative Society established by or under any law for the time being in force or (d) any body corporate established, by or under any law for the time being in force; or (¢) any partnership firm whether registered or not under any law including association of persons | () any casual taxable person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Territory Goods and Services Tax Act. fax Act or the Union _Lnserted vide Notification No. 32/2017-Central Tax (Rate) dated 13th October, 017] ' Services provided bya goods transport agency, by way of transport of goods ina goods carriage, to (a) aDepartment or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (0 Governmental agencies, which has taken registration under the CGST At, 2017 only for the purpose of deducting tax under section 51 and not for making a taxable supply of goods or services. [Inserted vide Notification No, 28/2018-Central Tax (Rate) dated 31st December, 2018]23 24A Services by way of warehousing of minor forest produce. [Inserted vide Notification 34B Services by way of storage/ warehousing of cereals, pulses, [ruits, nuts and veg Description of Servic Services by way of giving on hire (a) to asstate transport undertaking, a motor vehicle meant to Earry mere than 12 passengers: or | (aa) to a local authority, an Electrically operated vehicle (EOV) meant to carry more than 12 passengers: FOV means vehicle falling under Chapter 87 in the First Schedule to the Custonts Tari? Act, 1975 which is run solely on electrical energy derived from an external source oF from one more electrical batteries fitted to such road Vehicle (B) toa goods transport agency, a means of transportation of goods. (@) motor vehicle for transport of students, faculty and staff, to a person Pros iding services of transportation of students, faculty and staff to an educational institution prov iding services by way of pre-school education and education upto higher secondary school or eau valent [As amended up to the latest amendment vide Notification No. 13/2019-Central Tax (Rate) 2019] Service by way of ace Service by way of access to a road or a bridge on payment of annuity - [Inserted vide Notification 32/2017-Central Tax (Rate) dated 13th October, 2017) _ -es by way of loading, unloading, packing, storage or warehousing of rice s to a road or a bridge on payment of toll cha _14/2018-Central Tax (Rate) dated 26th July, 2018] etables, Spices, Co- rcane, jaggery, raw vegetable fibres such as cotton, flax, jute ele indigo, unmanufactured .s, tendu leaves, coffee and tea. [Inserted vide Notification No. 21/2019-Central Tax (Rate) dated 30th Septen ber, 2019] 29 38 Transmission or distribution of electricity by an electricity transmission oF distribution utility 26 Services by the Reserve Bank of India. 27 Services by way of- (a) extending deposits, loans or advances insofar as the consideration is represented by way of interest or discount (other than interest involved in credit card services): | (5) inrersesale or purchase of foreign currency amongst banks or authorised dealers of foreign | 9 exchange or amongst banks and such dealers. ‘Tutorial Note: Here, interest means interest payable in any manner in respect of any moneys borrowed) debt incurred (including a deposit, claim or other similar right or obligation), but does not include any service fee or other charge in respect of the moneys borrowed or debt eee red on in respect of any credit facility which has not been utilised | [Refer Para 6.12.2 given at the end of the table] 271A Services provided by a banking company '0 Basie Saving Bank Deposit (BSBD) account holders aoe Pradhan Mantri Jan Dhan Yojana (PMJDY). [Inserted vide Notification No. 28/ 2018-Central ___| Tax (Rate) dated 31st December, 2018] __ 28 Ser ‘es of life insurance business provided by way of annuity under the National Pension System | regulated by the Pension Fund Regulatory and Development ‘Authority of India under the Pension __| Fund Regulatory and Development Authority Act, 2013 rmy, Naval and Air if the Army, Navy and Air Force, respectively, under f the Central Government. Services of life insurance business provided or agreed to be provided by the A Force Group Insurance Funds to membe! “the Group Insurance Sc eme:Para 6.12 Entry No. EXEMPTIONS FROM GST ; Description of Services , @ precincts of a port or (D) Services in relation to an alreraft or a vessel, inside or outside the precit Port or ay airport; (6) Transport of goods or passengers; oF hoe, prone to (d) Any service, other than services covered under entries (4) 10 (6) above. f sinesg ee ryorlocal auth 7 | Services provided by the Central Government, State Government Union tetitory or leva auton | toa business entity with an aggregate turnover of up to stich aniount in the preceding Financ jg) ur the CGST Act, 2017. | Year as makes it eligible for exemption from registration under the CGST Act ‘at the provisions of this entry | Explanation - For the purposes of this entry, itis hereby clarified th: | shall not be applicable to following services (a) Services, (i) by the Department of Posts by way of speed post, express parcel post, lle insurance, and agency services provided to a person other than the Central Government, State Government, Union territory; relation to an aircraft or a vessel, inside or outside the precinets of a port or an airport (a of transport of goods or passengers; and (i (6) Services by way of renting of immovable property. [As amended vide Notification No. 21/2019-Central Tax (Rate) dated 30th September, 2019) Definition of Business Entity _ | [As per definition given in paragraph 2 clause (n) of Notification Number 12/2017 Ceniral Tax. Rae | dated 28th June 2017, the term "business entity” means any person carrying out busi - 8 _| Services provided by the Central Government, State Government, Union territory or local authority | to another Central Government, State Government, Union territory or local authority. Provided | that nothing contained in this entry shall apply to services However, nothing contained in this | entry shall apply to services | (i) by the Department of Posts by way of speed post, express parcel post, ices provided to a person other than the Central Government, State Government fe insurance, and | ageneys | Union territory; | (ii) in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; __| Gii)_of transport of goods or passengers. 9 | Services provided by Central Government, State Government, Union territory o1 a local authority | where the consideration for such services does not exceed Rs. 5,000. Provided that nothing con- | tained in this entry shalll apply to services | ( by the Department of Posts by way of speed post, express parcel post insurance, and | agency services provided to a person other than the Central Government, State Government | Union territory; (9 In relation to an aireraft or a vessel, inside or outside the precincts of a port ot an airport (ii)_of transport of goods or passengers, In case of Continuous Supply of Service | | The Proviso to this entry number 9 provides that, in case where continuous supply of service ® provided by the Central Government, State Government, Union territory or a loved aathorits tt exemption shall apply only where the consideration cha ged for such service does not exceed RS: 5,000 ina financial year. The continuous supply of service is defined in section 2(33) of CGST Tax Act, 20176.9 “Entry No. | _ “9AA 9A 9B LIST OF SERVICES Para 6.12 Description of Services Services provided by and to “Federation Internationale de Football Association” (FIFA) and its subsidiaries directly or indirectly related to | to be hosted in India. Lnserted vide Notification No. 21/2017-Central Tax (Rate) dated 22nd August, 2017] Tutorial eg FIFA stands for “Federation Internationale de Football Association” in French. It is responsible for “organizing all major football tournaments like Football World C up (FIFA World Cup) and FIFA Women's World Cup prov ided by and to “Federation Internationale de Football Association” (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-17 Women's World Cup 2020 to be hosted in India. Conditions to be fulfilled: Director (Sports), Ministry of Youth Affairs has to certify that the services are directly or indirectly related to any of the events under FIFA U-17 Women's World Cup 2020. [nserted vide Notification No. 21/2019-Central Tax (Rate) dated 30th September, 2019] Tutorial Note: Since FIFA U-17 Women’s World Cup 2020 is to be hosted in India, exemption has been granted to services provided by and to FIFA and its subsidiaries related to any of the events under this World Cup. any of the events under FIFA U-17 World Cup 2017 Supply of services associated with cargo to Nepal and Bhutan (landlocked couniries) [Inserted vide Notification No. 30/2017-Central Tax (Rate) dated 29th September, 2017] Tutorial Note: Landlocked means the part of the world which does not border any large body of water like an ocean 9D 10A Services supplied by electricity distribution u i | Services by way of pure labour contracts of construction, er The supply of service by a Government entity to Central Government/State Government/ Union , territory/any specified person (ie. spec by Central/State Government, etc.). This exemption is available only if consideration is received from the Central Government/ State Government, etc. in the form of grants. [Inserted vide Notification No. 32/2017-Central Tax (Rate) dated 13th October, 2017] - Services by an old age home run by Central Government, State Government or by an entity reg- istered under section 12AA of the Income-tax Act, 1961 to its residents (aged 60 years or more) against consideration upto Rs. 25,000 per month per member, provided that the consideration | charged is inclusive of charges for boarding, lodging and maintenance. [Inserted vide Notification No. 14/2018-Central Tax (Rate) dated 26th July, 2018] " Services provided by way of pure labour contracts of construction, erection, commissioning, in- stallation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure ‘or any other original works pertaining to the beneliciary led individual house construetion or enhancement under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yo ies by way of construction, erection, commissioning, or installation of infrastructure for extending electricity distribution network upto the tube well of the farmer or agriculturalist for agricultural use. [inserted vide Notification No, 14/2018-Central Tax (Rate) dated 26th July, 2018] ‘ommissioning, or installation | of original works pertaining to a single residential unit otherwise than as a part of a residential | complex,—____| [Inserted vide Notification No. 21/2017-Central Tax (Rate) dated 22nd August, 1B ded by Fair 7 a “earse grains under Public Distribution System (PDS) against consideration in the form of cory, mission or margin, O17] State Governments or Union territories by way of sale oj Service provided by Fair Price Shops to a Kerosene, sugar, edible oil, etc. under Public Distribution System (PDS) against consideration in the form of commission or margin. [inserted vide Notification No. 21/2017-Central Tax (Rate) ___ | dated 22nd August, 2017] eedece sees _12 Services by way of renting of residential dwelling for use as residence. 13 | Services by a person by way of- | @ conduct of any religious ceremony; | () renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act 1961 or a trust or an institution registered under section 10(23C)(v) of the Income-tax Act or a body or an authority covered under-section 10(23BBA) of the said Income-tax Act | However, nothing contained in entry (b) of this exemption shall apply to- | @ renting of rooms where charges are Rs. 1,000 or more per day; | (Renting of premises, community halls, kalyanmandapam or open area, and the like where charges are Rs. 10,000 or more per day; | (iii) Renting of shops or other spaces for business or commerce | or more per month. : | Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential | or lodging purposes, having Value of Supply® of a unit of accommodation below or equal to” | = 1,000 per day or equivalent. | #2 [The words “Value of Supply” have been substituted in place of “ declared tariff” vide | Notification No. 14/2018-Central Tax (Rate) dated 26th July, 2018] | ide Notification No. 21/2019-Central Tax where charges are Rs. 10,000 | #3 [The words “or equal to” have been inserted vi __ (Rate) dated 30th September, 2019] | Transport of passengers, with or without accompanied belongings, by- | (@) Air, embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal; (b) Non-air conditioned contract carriage other than radio taxi, excluding tourism, conducted tour, charter or hire; or | for transportation of passengers, | (c) Stage carriage other than air-conditioned stage carriage. _ ue Definition of Radio Taxi | As per definition given in paragraph 2 clause (zv) of Notification No. 12/2017 Central Tax- Rate | dated 28th June 2017, the term “radio taxi” means a taxi including a radio cab, by whatever name ion with a central control office and is enabled for, | called, which is in two-way radio communi: | tracking using the Global Positioning System or General Packet Radio Service, el | Services provided to the Central Government, by way of transport of Passengers with or without | accompanied belongings, by air, embarking from or terminating at a RCS (Regional Connectivity ability gap funding. However, nothing | Scheme) airport, against consideration in the form of ' contained in this entry shall apply on or after the expiry of a period of 3 Years#4 from the date of commencement of operations of the regional connectivity scheme airport as notified by the Ministry of Civil Aviation, | The words “3 years” have been substituted in place of “ one year” vide Notification No. oie Central Tax (Rate) dated 25th January, 2018] : / -Central lax (aoe manuary, <0rersit LISFOF SERVICES Para 6.12 pe | Description of Services |S [| 17 Senice of transportation of ‘ Sengers, With or without accompanied belongings, by (a) Railways in a class other than— | (9 first class; o | | anair-conltioned conch; (b) Metro, mone or tramway (0) Inland waterways; (@) Public transport other than predominantly for tourism purpose, in a vessel between places | located in India; and _{) metered cabs or auto (including e-rickshavs) |___ Definitions as per paragraph 2 of Notification No. 12/2017 CT Rate dt, 28th June, 2017 Paragraph 2(zp): “Metered Cab” means any contract carriage on which an automatic device 0! the type and make approved under the relevant rules by the State Transport Authority, is fitted | which indicates reading of the fare chargeable at any moment and that is charged! avcorc | under the conditions of its permit issued under the Motor Vehicles Act, 1988 (59 of 1988) and the | rules made thereunder (but does not include radio taxi). | | Paragraph 2(za): “E-Rickshaw” means a special purpose battery powered vehicle of power not exceeding 4000 watts, having three wheels for carrying goods or passengers, as the case may be for hire or reward, manufactured, constructed or adapted, equipped and maintained in accordance “with such specifications, as may’be prescribed in this beh as 18. | Ser | @ by road except the services of— (a Goods Transportation Agency: ces by w of transportation of goods (ii) a courier agency; | @) by inland waterways : i - Definitions as per paragraph 2 of Notification No, 12/2017 CY- Rate dt. 28th June, 2017 _ | Paragraph 2(2e: "Goods Transport Ageney” means any person who proves service in relation to “ameport of goods by road and isues consignment note, by whatever ame called “Paragraph 2{u}Courier Agency" means any person engaged in the door-to-door transportation aera tie documents, goods or articles utilising the services ofa person, either directly ot midirectly, to carry or aceompany such documents, goods or articles Paragraph 2a Tnland Wateriay” means ational waterways as define in cause (1) of section aoa ae ater ays Authority of India Act 1985 or other waterway on any inn water 2s | defined in section 2(b) of the Inland Vessels Act, 1917. [19 Services by way of transportation of goods by an airraft from a place outside Ina upto the jon of clearance in India, customs -A Services by way of transportation of goods by an aircraft from customsstation of cle | | tora place outside India, This exemption has been granted up 10 30th day s | ‘ance in India ptember, 2021 only | Asamended up 10 the Jatest amendment vide Notification No. 4/2020-Central Tax (Rate) dated | 30th September, 2020] _ - | 19B | Services by way of transportation of goods by a vessel from customs station of clearance in India | | | to aplace outside India, This exemption has been granted up to 30th day September, 2021 only | (Asamended up to the latest amendment vide Notification No, 4/2020-Central Tax (Rate) dated, __| 30th September, 2020] _ _ ——— | 19C "/Satelite launch services supplied by Indian Space Research Organisation, Ants Corporation | Limited or New Space India Limited are exempt ___| [Inserted by Notification No. 5/2020-CT(R) dated -2020 wet 16-10-2020]Para 6,12 EXEMPTIONS PROM GST _ ae Description of Services No. place int India to anothe 20 vies by way ol transportation by rail or a vessel front one following goods t + disasters, calamities, accidents o, (@) relief materials meant for victims of natural or man-made disasters, Ca mishaps: (6) defence or military equipments: (6) newspaper or magazines registered with the Registrar of Newspapers (@) railway equipments or materials (6) agricultural produce: (9 milk, salt and food grain including Hours, pulses and rice; ane (g) organic manure. _ : 21 Services provided by a goods transport ageney, by way of transport in a goods carriage of (a) agricultural produce; (6) goods, where consideration charged for the transportation of goods on a consignment je carriage does not exceed Rs. 1,500) ported in a si - consideration charged for transportation of all such goods fora single cor (0) goods, whe does not exceed Rs. 750; | @ milk (e) organic manure salt and food grain including flour, pulses and rice: gistered with the Registr (newspaper or magazine of Newspapers: | (g) relief materials meant for victims of natural or man-made disasters, calamities, accidents © mishap: or (4)_defence or military equipment Services provided by a goods transport agency to an unregistered person, including casual taxable person, other than the following recipients, namely: - | (a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948); or | (B) any Society registered under the Societies Registration Act, 1860 (21 of 1860) or under 22° other law for the time being in force in any part of India: or (©) any Co-operative Society established by or under any law for the time be (d) any body corporate established, by or under any law for the time being in force: or (v) any partnership firm whether registered or not underany law including association of persons (f) any casual taxable person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act ot the Unie Territory Goods and Services Tax Act | Lnserted vide Notification No. 32/2017-Central Tax (Rate) dated 13th October, 2017} Sel (a) a Department or Establishment of the Central Government or S territory; or ices provided by a goods transport agency, by way of transport of goods in a goods eat ate Government or Univ al authority; or (0) Governmental agencies, | chich has taken registration under the CGST Act, 2017 only for the purpose of deducting tax unde vettion 31 and not for making a taxable supply of goods or services. Inserted vide Notification No. 28/2018-Central Tax (Rate) dated 31st December, 2018]23 @ ae transport undertaking, a motor vehicle meant to carry more than 12 passengers (aa) to a local authority, an Electrically operated vehicle (EOV) meant to carry more than 12 passenge pau means vehicle falling under Chapter 87 in the First Schedule to the Cusions Tariff Ac 1975 which is run solely on elecirical energy derived from an external source oF front one more electrical batteries fitted io such road Vehicle (B) toa goods transport agency, a means of transportation of goods (©) motor vehicle for transport of students, faculty and staff, to a person providing services of transportation of students, faculty and staff to an educational institution providing services by way of pre-school education and education upto higher secondary school or equivalent [As amended up to the latest amendment vide Notification No. 13/2019-Central Tax (Rate) dated 31st July, 2019] Service by way of access to a road or a bridge on payment of toll charges Service by way of access to a road or a bridge on payment of annuity. [Inserted vide Notification 2A No. 32/2017-Central Tax (Rate) dated 13th October, 2017] 24 _ Services by way of loading, unloading, packing, storage or warchousing of rice - 24A Services by way of warehousing of minor forest produce. [Inserted vide Notification No. 14/2018-Central Tax (Rate) dated 26th July, 2018] _ | 24B Services by way of storage/ warehousing of cereals, pulses, fruits, nuts and vegetables, Spices, co- pra, sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute ete., indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee and tea. [Inserted vide Notification No. 21/2019-Central Tax (Rate) dated 30th September, 2019] 23 Transmission or distribution of electricity by an electricity transmission or distribution utility 26 Services by the Reserve Bank of India. Z — 27 Services by way of- 27a (a) extending deposits, loans or advances insofar as the consideration is represented by way ot interest or discount (other than interest involved in credit card service: of foreign currency amongst banks or authorised dealers of tore! (b) inter sesale or purchase exchange or amongst banks and such dealers. terest payable in any manner in respect of any moneys im or other similar right or obligation), but Tutorial Note: Here, interest means i borrowed /debt incurred (including a deposit, ¢ does not include any service fee or other cha ‘neurred on in respect of any credit facility which has not been utilised. + in respect of the moneys borrowed or debt [Refer Para 6.12.2 given at the end of the table] - - dt Services provided by a banking company to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY), [Inserted vide Notification No. 28/2018-Central Tax (Rate) dated 31st December, 2018] _ ‘Services of life insurance business provided by way of annuity under the National Pension System regulated by the Pension Fund Regulatory and Development Authority of India under the Pension | | __Fund Regulatory and Development Authority Act, 2013. Services of life insurance business provided or agreed to be provided by the Army, Force Group Insurance Funds to members of the Army, Navy and Air Force, respective __the Group Insurance Schemes of the Central Government Naval and & Jy, under | | |Para 6.12 TAXMANN EXEMPTIONS FROM GST Description of Services s of life insurance provided or b D to the personnel of Coast Guard under the Group Insurance Schemes of the Central Gove: [Inserted vide Notification No. 2/2018-Central Tax (Rate) dated 25th January, 2018) 29B Services of life insurance provided agreed to be (und rovided by the Central Armed Police Fox: Ministry of Home Affairs) Group Insurance Funds to their members under the Gr ‘¢ Schemes of the concerned Central Armed Police Force. Insura ___[Inserted vide Notification No. 21/2019-Central Tax (Rate) dated 30th September, 2019) 30° Serv ices by the Employees’ State Insurance Corporation to persons governed under the Employ... ¢ Insurance Act, 1948. cs provided by the Employees Provident Fund Organisation to the persons governed the Employees Provident Funds and the Miscellaneous Provisions Act, 1952. a Services by Coal Mines Provident Fund Organisation to persons governed by the Coal \\ Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948). [Inserted vide Notification Vo. 14/2018-Central Tax (Rate) dated 26th July, 2018] Services by National Pension System (NPS) Trust to its members against consideration in = form of administrative fee. [Inserted vide Notification No. 14/2018-Central Tax (Rate) dated | 26th July, 2018] Services provided by the Insurance Regulatory and Development Authority of India to _under the Insurance Regulatory and Development Authority of India Act, 1999 Services provided by the Securities and Exchange Board of India set up under the Securi Exchange Board of India Act, 1992 by way of protecting the interests of investors in secutities and to promote the development of, and to regulate, the securities market. Services by an acquirin; thousand rupees in a sis ingle transaction transacted through credit card, debit card, chats or other payment card service. 33 34 bank, to any person in relation to settlement of an amount upto two ge card Explanation: For the purposes ofthis entry, “acquiring bank" means any banking company, f ancial institution including non-banking financial company or any other person, who mute | Payment to any person who accepts such card. | 34K Services supplied by Central Government State Government, Union Territory totheir undertak | or Public Sector Undertakings (PSUs) by way of guaranteeing the loans taken by such unecrsty or PSUs from the banking companies#§ and fi inancial institutions. (Inserted vide Notification \o 14/2018-Central Tax (Rate) dated 26th July, 2018] #5 [The words “banking companies and” have been inserted 4 tral Tax (Rate) dated 31st December, 2018] le Notification No. 28/2018-Cen- 35 Services of general insurance business provided under following schemes (a) Hut Insurance Scheme; (6) Caitle Insurance under Swarna jayanti Gram Swarozgar Yojana (ater known ayn Rural Development Programme); | (©) Scheme for Insurance of T als; (d) Janata Personal Accident Policy and Gramin Accident Policy; (e) Group Personal Accident Policy for Self-Employed Women: (f) Agricultural Pumpset and F: led Well Insurance; (g) Premia collected on export credit insurance; (f) Weather Based Crop Insurance Scheme or the Modified National Agricultural Insurance Scheme, approved by the Government of India and implemented by the Ministry of Agricul- ture; a68 Entry No. 36A. a7 2B 39 39A LIST OF SERVICES Para 6.12 Description of Services (i) Jan Arogya Bima Policy: (j) National Agricultural Insurance Scheme (Rashteiva Krishi Bima Yojana) | {k) Pilot Scheme on Seed Crop Insurance: (i) Central Sector Scheme on Cattle Insurance: (m) Universal Health Insurance Scheme () Rashtriva Swasthya Bima Yojana: (0) Coconut Palm Insurance Scheme (p) Pradhan Mantri Suraksha Bima Yojana (q) Niramaya Health Insurance Scheme implemented by the Trust constituted ander the pro vison of the National Trust for the Wellare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999. (r) Bangla Shasya Bima. Services of life insurance business provided under following schemes: (a) Janashree Bima Yojana; (b) Aam Aadii Bima Yojana; (6) Life miero-insurance product as approved by the Insurance Regufatory and Development Authority, having masinum amount of cover of Rs. two lakhsi#6; (d) Varishtha Pension Bima Yojana (e) Pradhan Mantri Jeevan Jyoti Bima Yojana; | () Pradhan Mantri Jan Dhan Yojana: (g) Pradhan Mantri Vava Vandana Yojana. | 26 [The words “two lakhs” have been substituted in place of words “fifty thousand” vide Notifi- cation No. 2/2018-Central Tax (Rate) dated 25th January, 2018) | insurance schemes specilied in serial number 35 or 36 or Services by way of reinsurance: of the 2g18-Central Tax (Rate) dated 25th January, 2018] | 4087, /Inserted vide Notification No. 2 #7 [The words and figures “or 40° have been inserted vide Notification No. 14/2018-Central Tay (Rate) dated 26th July, 2018) | Services by way of collection of con collection of contribution under any pension scheme of the State Governments tribution under the Atal Pension Yojana, Services by way of yective capacities = | Services by the following persons in res {a) business favlitator or a business correspondent to a banking company with respect to accounts in its rur -al area branch; as an intermediary 1 a business facilitator or a business correspondent with (b) any person ‘es mentioned in entry (a); oF respect 10 Servic correspondent to an insurance company in a rural area. (6) business facilitator or a business ¢ Services by an intermediary of financial services located in a multi services SEZ with Intet seen maneial Services Centre (IFSC) status toa customer located outside India for interna veal nancial services in currencies other than Indian rupees (INR) Explanation. For the purposes of this emiy, the intermediary of financial services in IFSC i 4 Pehson ji) who fs permitted or recognised as stich by the Government of India or any Regilatn” iy regadation of IESC:or (i) who is treated as a person resident outside india tneder th ve Exchange Management (International Financial Services Centre) Regulations, 2015.0" (0 ogistered under the Insurance Regulatoryand Development Auahority of radia (hate nationalPara 6.12 EXEMPTIONS FROM GST 6.16 [Entry [ i Description of Services No lo. | Financial Service Centre) Guidelines, 2015 as HSC bisurance Office: oF (8) ba such by Securities and Exchange Board of India (SEBI) under the Securtiies and Exc of India (International Financial Services Centres) Guidelines, 2015. Notification No. 2/2018-Central Tax (Rate) dated 25th January, 2018) hi Union Territory und Linserted vid 40 Services provided to the C insurance scheme for which total pre _Union Territe - Upfront amount (called as premium, salami, cost, price, development charges or by an | name) payable in respect of service by way of granting of long term lease of thirty vears, or mu of industrial plots or plots for development of infrastructure for financial business, provided State Government Industrial Development Corporations or Undertakings or by any othe having 20 per cent or more ownership of Central Government, State Government, Union Te to the industrial units or the developers in any industrial or financial business area. [This entry 41 has been substituted in place of original entry vide Notification } Central Tax (Rate) dated 13th October, 2017] Provided that the leased plots shall be used for the purpose for which they are allotted, that is industrial or financial activity in an industrial or financial business area: central Government, State Government m is paid by the Central Government, State Go 41 32/2017. Provided also that the State Government concerned shall monitor and enforce the above cond! as per the order issued by the State Government in this regard: Provided further that in case of any violation or subsequent change of land use, due to a whatsoever, the original lessor, original lessee as well as any subsequent lessee or buver or ow ne shall be jointlv and severally liable to pay such amount of integrated tax, as would have een payable on the upfront amount charged for the long term lease of the plots but for the exemption contained herein, along with the applicable interest and penalty: Provided also that the lease agreement entered into by the original lessor with the original lessee or subsequent lessee, or sub-lessee, as well as any subsequent lease or sale agreements, for lease or sale of such plots to subsequent lessees or buyers or owners shall incorporate in the terms and conditions, the fact that the integrated tax was exempted on the long term lease of the plots 5y the original lessor to the original lessee subject to above condition and that the Parties to the said agreements undertake to comply with the same. 41A& Supply of TOR, FSI, long term lease (premium) of land by a landowner to a developer have been 41B exempted subject o the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them, Exemption of TOR, FSI, long term lease (premium) shall be withdrawn in case of fats sold after issue of completion certificate, but such withdrawal shall be limited to 14 of value in case of a! | fordable houses and 5% of value in case of other than affor dable houses. This will achieve a fa degree of taxation parity between under construction and ready to move property [Effective trom 01.04.2019]. 42 | Services provided by the Central Government, State Government Union Territory or local au | thority by way of allowing a business entity to operate as a telecom service provider on use wade | frequency spectrum during the period prior to the Ist April, 2016, on payment of licence fee of | spectrum user charges, as the case may be. _ 3 | Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by the Indian ss Finance Corporation to Indian Railways, | Rail : , {| Services provided by an incubatee up to a total turnover of Rs. 50 lakh in a financial year subject | to the following conditions, namely: eded Rs. 50 lakh during the preceding financial year; and (a) the total turnover had not exc | (a) a period of three years has not clapsed from the date of entering into an agreement as an ee. incubaLIST OF SERVICES Para 6.12 Description of Services a rae _____ Definition of incubatee | | | a the paragraph 2 clause (zh) of Notification No, 12/2017 Central Tax- Rate | layed 28 Tune 2017 the term “incubatce” means an entrepreneur located within the premises of a Technology Business Incubator or Science and Technology Entreprencurship Park recognised | by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India and who has entered into an agree- | ment with the Technology Business Incubator or the nd Technology Entrepreneurship | __| Park to enable himself to develop and produce hi-tech and innovative products; 43 Services provided by- = z novalive pro Science (a) an arbitral tribunal to - a business entity with an aggregate turnover up to such amount in the preceding | (i) any person other than a business entity; or (i | Financial Year as makes it eligible for exemption from registration under the CGST Act, 2017; | | (iii) the Central Government, State Government, Union territory, local authority, Govern= | mental Authority or Government Entity; (b) a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services to () an advocate or partner hip firm of advocates providing legal services; | (i) any person other than a business entit | | (ii?) a business entity with an aggregate turnover up to such amount in the preceding | | Financial Year as makes it eligible for exemption from registration under the CGST Act, 2017, aNNVIV (iv) the Central Government, State Government, Union territory, local authority, Govern- | mental Authority or Government Entity; (c) asenior advocate by way of legal services to- | ( any person other than a business entity; or | | (i) a business entity with an aggregate turnover up to such amount in the preceding | Financial Year as makes it eligible for exemption from registration under the CGST Act, | 2017. i) the Central Government, State Government, Union territory, local authority, Govern-| mental Authority or Government Entity; | [As amended up to the latest vide Notification No. 21/2019-Central Tax (Rate) dated 30th | September, 2019] | | 46 | Services by a veterinary clinic in relation to health care of animals or bir 47 | Services provided by the Central Government, State Government, Union Territory orlocal authority by way of- | (a) registration required under any law for the time being in force; (b) testing, calibration, safety check or certification relating to protection or safety of workers, consumers or public at large, including fire license, required under any law for the time being | | | in force. || 47A_ Services by way of licensing, registration and analysis or testing of food samples supplied by the Food Safety and Standards Authority of India (FSSAD to Food Business Operators. [Inserted vide | Notification No. 14/2018-Central Tax (Rate) dated 26th July , 2018] _ =Para 6.12 EXEMPTIONS FROM GST 6.1 | [Baty | “Description of Services | |_No. © 48 /Taxable services, provided or to be provided, by a Technology Busines Inbar of Si Land Technology Entreprencurship rae ite eal ty te xa ont Technoloes Governme epreneurship Developmient Board of the Department of Science and T ern Ol hada ec uanans coe the Bonet Industry Research ASSStaNCE Can under the Department of Biotechnology, Government of India ao | 49. | Services by way of collecting or providing news by an independent journalist, Press Trust of fig or United News of India. ; ——— 30 | Services of public libraries by way of lending of books, publications or any ot . hhancing content or material 51 Services provided by the Goods and Services Tax Network to the Central Government oF Sin Governments or Union Territories for implementation of Goods and Services Tax 52 Services by an organiser to any person in respect of a business exhibition held outside India 53 _ | Services by way of sponsorship of sporting events organised - (a) by anational sports federation, or its affliated federations, where the participating teams individuals represent any district, State, zone or Country; (6) by Association Indian Universities, Inter-University Sports Board, School Games Federation of India, All India Sports Council for the Deaf, Paralympic Committee of India or Special Olympics Bharat; (©) by the Central Civil Services Cultural and Sports Board; (d) as part of national games, by the Indian Olympic Association; or 2 (under the Panchayat Yava Kreeda Aur Khel Abhiyan Scheme. | 5 53A Services by way of fumigation ina warehouse of agricultural produce. [Inserted vide Notification e No. 2/2018-Central Tax (Rate) dated 25th January, 2018] | 54 55 Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of— (@ agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing: () supply of farm labour; | (6 Processes carried out at an agricultural farm including t | drying, cleaning, trimming, sun drying, fumigating, packaging | cultural produ i, pruning, cutting, harvesting, curing, sorting, grading, cooling or bulk such like operations which do not alter the essential characteristics ol agri but make it only marketable for the primary markets - (4) renting or leasing of agro machines toils use; ry oF vacant land with or without 4 structure incidental (2) loading, unloading, packing, st e¢ or warehousing of agricultural produ (f) agricultural extension services; |. (8) services by any Agricultural Produce Marketing Committee © or Board ot services provided | | __ by commission agent for sale or purchase of agricultural prods : tion ina warehouse of | [The item (h) has been inserted vide Notification No, 2/2018-Central Tax (Rate) dated 25th [January, 2018) | (i) services by way of fun agricultural produce. / Carrying out an intermediate production process as job work in relation to cultivation of plantsand | rearing of al fe forms of animal, except the rearing of horses, for oud, bs heck on _[or other similar products or agricultural produec J| Para 6.12 EXEMPTIONS FROM GST 6.18 Entry | _ 7 Description of Services No. | ble s . provided or to be provided, by a Technology Business Incubator oF a Scion. preneurs! a Science and Technol, Park recognised by the National Science and Hho repreneurship Park recognised by cay coms and Technology E ¢ ‘ r partment of Scienceand T ship Development Board of the Department ol Tech over incubators recognised by the Biotechnology Industry Research Assistance Counc 48 | Taxable services, Ent | of India or bio Mo | I under the Department of Biotechnology, Government of India. | 49 Services by way of collecting or providing news by an independent journalist, Press Trust of Indi or United News of India, 7 - - ar 50 Services of public libraries by way of lending of books, publications or any other knowledge-cr, | ___haneing content or material - — ——— 51 Services provided by the Goods and Services Tax Network to the Central Government oF Stat Governments or Union Territories for implementation of Goods and Services Tax. 52 _| Services by an organiser to any person in respect of a business exhibition held outside India 53 | Services by way of sponsorship of sporting events organised - (2) by anational sports federation, or its affiliated federations, where the participating teams or | individuals represent any district, State, zone or Country; () by Association of Indian Universities, Inter-University Sports Board, School Games Federation ~ of India, All India Sports Council for the Deaf, Paralympic Committee of India or Special Olympics Bharat; (0) by the Central Civil Services Cultural and Sports Board; ¢ (@) as part of national games, by the Indian Olympic Association; or (e) under the Panchayat Yuva Kreeda Aur Khel Abhiyaan Scheme. | 534. Services by way of fumigation ina warehouse of agricultural produce. [Inserted vide Notification No, 2/2018-Central Tax (Rate) dated 25th January, 2018] | 54 | Services relating to cultivation of plants and rearing of al life forms of animals except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of — (2 agricultural operations directly related to production of any agricultural produce including | cultivation, harvesting, threshing, plant protection or testing; | (b) supply of farm labour; | (0 process: cartied out alan agricultural arm including tending, pruning, cutting, harvesting, drying cleaning, rimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk } Packaging and such like ‘operations which do not alter the essential characteristics of agri | cultural produce but make it only marketable for the primary market; (4) renting or leasing of agro machinery or vacant | land with or without a structure incidental to its use; (6) loading, unloading, packing, storage or way housing of agricultural produ: (/) agricultural extension services; (e) services by any Agricultural Produce Marketing Committee or Bo. | __ bya commision agent for sale or purchase of agricultural pate | (2) services by way of fumigation in a warehouse |[The item (h) has been inserted vide Notification January, 2018] ee ae 55 Carrying outan intermediate production processs job workin lation wculinva ion of plantsand | earing of all ife forms of animals, except the rearing of horses, for food, libas fect ay [or other similar products oragricultural produce or services provided of agricultural produce No. 2/2018-Central Tax (Rate) dated 25thUST OF SERVICES Para 6.12 Description of Services 35A Services by way of artificial insemination of livestock (oiher than horses, /Inserte a _cation No, 14/2018.Central Tax (Rate) ates satire 7018) acti services by way of slaughtering of animals, - 37 Services by way of pre-conditioning, pre-covling, ripening, waxing, retail packing fruits and vegetables which do not chase or ater toe nate een ie or alter the essential characterist bles he essential characteris s of the said re for Cold Chain Development under the Ministry Welfare by way of cold chain knowled 59 vices by a foreign diplomatic mission located in India 60 Services by a specified organisation in respect of a religious pilgrimage facilitated b> the Gover ment of India, under bilateral arrangement [The words “the Ministry of External Affairs” have been omitted vide Notification No. 2 2018-Cen- tral Tax (Rate) dated 25th January, 2018] 61 Services provided by the Central Government, State Government, Union Territory orlo by way of issuance of passport, visa, driving licence, birth certifi th certific 62 Services provided by the Central Government, State Government, Union Territory or local authorit by way of tolerating non-performance of a contract for which consideration in the form uf fines or liquidated damages is payable to the Central Government, State Government, Union Territors or local authority under such contract. 63 | Services provided by the Central Government, State Government, Union Territory or local author- ity by way of assignment of right to use natural resources to an individual farmer for cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel raw material or other similar products. 64 | Services provided by the Central Government, State Government, (Union Territory or local authority by wav of assignment of right to use any natural resource where such right to use was assigned by Central Government, State Government, Union Territory orlocal authority before the Ist April, 2016 However, the exemption shall apply only to tax payable on one time charge payable, in full upfront orn instalments, for assignment of right to use such natural resource vi ‘5 provided by the Central Government, State Government, Union Territory by way of deputing officers after office hours or on holiday’ for inspection or container stuffing or such other | dutics in relation to import export cargo on payment of Merchant Overtime charges. 653A Services by way of providing information under the Right to Information Act, 200 [Inserted vide Notification No. 2/2018-Central Tax (Rate) dated 25th January, 2018] 65B Services supplied by a State Government to Excess Royalty Collection Contractor (ERCC) bs way of assigning the right to collect royalty on behalf of the State Government on the mineral dispatched by the mining lease holders Explanation. “mining lease holder’ means a person who has been granted mining lease, quarry lease or license or other mineral concession under the Mines and Minerals (Development and Regulation) Act, 1937, the rules made thereunder or the rules made by a State Government under sub-section (1) of section 15 of the Mines and Minerals (Development and Regulation) Act, 1937, Provided that at the end of the contract period, ERCC shall submit an account to the State Government and certify that the amount of goods and services tax deposited by mining lease holders on royalty is more than the goods and services tax exempted on the service provided by State Government to the ERCC of assignment of right to collect rovalty and where such amount of koods and services tax paid by mining lease holders is less than the amount of goods and services tax exempted, the exemption shall be restricted to such amount as is equal to the amount of goods and services tax paid by the mining lease holders and the ERCC shall pay the difference betweenPara 6.12 EXEMPTIONS FROM GST eae 6. Entry = i= Description of Services goods and services tax exem Ri ax exempted on the service led aorta es provided by State Government to the ignment of right to collect royalty and goods and services tax paid by the mining ian ly : on royalty. [Inserted vide Notific | cation No. -Centra ete ‘on No. 14/2018-Central Tax (Rate) dated 26th July, 2018) (a) by an educational institution to its students, faculty and stall; a educations (aa) by an educational institution by way of conduct of entrance examination against considey ation in the form of entrance fee; (b) to an educational institution, by way ol - and staff (® transportation of students, faculty me sponsored by the Central Government (ii) catering, including any mid-day meals sche State Government or Union Territory security orcleaning or house-keepingser vices performed in such educational institution (iii) amination by, such institution; (iv) services relating to admission to, or conduct of ex «) Provided that, nothing contained in sub-items (?), ;stitution other than an institution providing se lary school or equivalent: supply of online educational journals or periodicals: (i and (iti) of item (b) shall apply to an educa vices by way of pre-school education and tional in education up to higher second: Provided further that nothing contained in sub-item (¥) providing services by way of,-())pre-school education and education 1 to higher secondary school eeeequivalent; or (i) education as a part of an approved vocational education course. | [The changes have been made in above entry vide Notification No. 2/2018-Central Tax (Rate) _ | dated 25th January, 2018) 67 | [Omitted] Services provided by the Institutes ‘of Management. | [vide Notification No. 28/2018-Central Tax (Rate) dated 31° December, 2018, this entry number | 67 has been omitted.] oe | of item (4) shall apply to an institution | ‘Reason for omissio Under the amended position, with effect from 01.01.2019, entry No. 67 has been. omitted as IIMs | are now covered under the definition of ‘educational institution’ whose services are exempt under entry No. 66 of the said notification 82/01/2019 GST dated 01.01.2019 11,2018, all the IIMs are“educational instituiio! ‘), dated 28-06-2017 as they provide ed nized by law for the time being. in force. rograms for which they award partic as “participants” of the sa cognized by law Suc as an educational ns" as defined under Notification | Circular No. Iucation asa partofacurrictlunt With effect from 31.0. | No, 12/2017 Central Tax (Rate) for obtaining. a qualification recog -ation/short term Pp vide various short dur a xewutives/ professionals as they are considered certificates are not any qualification vices provided by IIMs pa [IIMs also pro tion certificate to th ‘es, These participation © programm | participants are also not considered as students of IM. Ser to such participants is not exempt from € ‘Such short duration executive program’ ve from O1.01.2019] | institutio sST. Such | atiract stand: 3ST 9%) [EI s provided vidual as a player, referee, umpire, coud sed by a recognized sports body; ard rate of ‘GST @l 8% (C GST 9% +S toa recognised sports body by- pation in # fh or team manager for part 68 Serv | (@ an indi | sporting event ore }) another ised sports body. a— al LIST OF SERVICES Para 6.12 Entry ] Description of Services ‘No. | 9 Any services provided by, | || provided by . - | in relation to | (© (@ the National Skill Development Corpora- tion set up by the Government of India; () theNational Skill Development Programme | | implemented by the National Skill Devel- opment Corporation; or | (Da Sector Skill Council approved by the | National Skill Development Corporation; | (ii) a vocational skill development course nent agency approved by the| under the National Skill Certification and | Sector Skill Council or the National Skill Monetary Reward Scheme; or | Development Corporation; (©) an asse | | Gi) Any other Scheme implemented by the 1" approved by the Na- National Skill Development Corporation tional Skill Development Corporation “| | | (@) a training part the Sector Skill Council. finistry | ments under the Skill Development 70 | Services of assessing bodies empanelled centrally by the Directorate General of Training, M of Skill Development and Entrepreneurship by way of a Initiative Scheme. 71 Services provided by training providers (Project implementation agenci ies) under Deen Dayal | Upadhyaya Grameen Kaushalya Yojana (DDUGKY) implemented by the Ministry of Rural Devel-| ‘opment, Government of India by way of offering skill or vocational training courses certified by the National Council for Vocational Training. Services provided to the Central Government, State Government, Union territory administration | under any training programme for which total expenditure is borne by the Central Government, | ation of stem cells or any other service | NVIVXVI 74 | Services by way of- (a) health care services by a clini para-medics; establishment, an authorised medical practitioner or | | (b) services provided by way of transportation of a patient in an ambulance, other than those | eaeIndia Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and a other activity as covered by the said Act at medical establishments, educational institutions, rehabil itation Centers established by Central Government, State Government or Union Territory or an entity registered under section 124A of the Income tax Act, 1961 [nserted vide Notification No. 28/2018-Central Tax (Rate) dated 31st December, 2018] Services provided by operators of the common bio-medical waste treatment facility to a clinical . establishment by way of treatment or I disposal of bio-medical waste or the processes incidental thereto. oe =| 76 Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets. : : 77 Service by an unincorporated body or a non-profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution, (a) as a trade union; 5) for the provision of carrying out any activity which is exempt from the levy of Goods and Services Tax; or up to an amount of Rs. 7,500 per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential com- plex. [The amount of Rs. 7,500 has been substituted in place of Rs. 5,000 vide Notification No. 2/2018-Central Tax (Rate) dated 25th January, 2018] Tutorial Note: In accordance with the Circular No. 109/28/2019 GST dated 2-7-2019, if the aggregate turnover of an RWA does not exceed ? 20 Lakh in a FY, it shall not be required to take registration and pay GST even if the amount of maintenance charges exceeds ® 7,500 per month per member. [Piease refer Para 6.12.1 given at the end of the table] 77A Services provided by an unincorporated body or a non-profit entity registered under any law for the time being in force, engaged in; TAN ALAN (i) activities relating to the welfare of industrial or agricultural labour or farmer (ii) promotion of trade, commerce, industry, agriculture, art, science, literature, culture, sports, education, social welfare, charitable activities and protection of environment, to its own members against consideration in the form of membership fee upto an amount of Re 1.000 per member per vear. Lnserted vide Notification No. 14/2018-Cent ral Tax (Rate) dated 26th July, 2018] 78 — Services by an artist by way of a performance in folk or classical art forms of- (a) music, or (b) dance, or (c) theatre, if the consideration charged for such performanceis not more than Rs, 1,50,000. a brand ambassador. _Definition of Brand Ambassador | However, the exemption shall not apply tu service provided by such artist As per definition given in paragraph 2 clause (mn) of Notification No. 12/2017 Cemiral Tax. Rate dated 28th June 2017, the term “brand ambassador” means a person engaged for promotion oF marketing of a brand of goods, service, property or actionable claim, event or endorsement of including a trade name, logo or house mark of any person. - © or 200.) name, — Services bv way of admission to a museum, national park, wildlife sanctuary, tiger reserv 79 Services bv g ui igPara 6.12 LIST OF SERVICES Services by way of training or coaching in recreational act ties relating 10- e, oF able entities registered under section 12AA of the Income tax Act | | gi _| Services by way of right to adi ion to- (a) circus, dance, or theatrical performance including drama or ballet; (b) award function, concert, pageant, musical performance or any sporting event other than 4 recognised sporting even (c) recognised sporting event; (d) Planetarium Where the consideration for right to admission to the events or places as refe (b), (0) or (d) above is not more than Rs. 500 per person. | [Vide Notification No. 2/2018-Central Tax (Rate) dated 25th January, 2018, item planetarium ‘has been added and the limit of consideration has been increased to Rs. 500 per person in place | | of Rs. 250 per persom] oo oo | © 42 Services by way of right to admission to the events organised under FIFA U-17 World Cup 2017 [Inserted vide Notification No. 25/2017-Central Tax (Rate) dated 21st September, 2018] i \der FIFA U-17 Women’s World rred to in items (4), 2A Services by way of right to admission to the events organised un Cup 2020. [Inserted vide Notification No. 21/2019-Central Tax (Rate) dated 30th September, 2019] ‘Tutorial Note: Since FIFA U-17 Women's World Cup 2020 is to be hosted in India, exemption has been granted to services of admission to events organized under it ide Notification No. 25/2017-Central Tax (Rate) dated 21st September, 2018] | | __[Inserted 6.12.1 Explanation regarding GST on monthly subscription/contribution charged by RWA from its members [Entry No. 77 clause (c)] ‘The issues relating to GST on monthly subscription charged by Residential Welfare Association (RWA) may be discussed as under: 1. Limit of 2 7,500 per month: Supply of service by RWA (unincorporated body or a non-profit entity registered under any law) to its own members by way of reimbursement of charges or share of contribution up to an amount of @ 7,500 per month per member for providing services and goods for the common use of its members in a housing society or a residential complex are exempt from GST. 2. Registration of RWA: If aggregate turnover of an RWA does not exceed % 20 Lakh in a nancial Year, it shall not be required to take registration and pay GST even if the amount of maintenance charges exceeds % 7,500 per month per member. 3. ecee ore The RWA shall be required to pay GST on monthly subscription contribution charged from its members, only if both the following parameters are satisfied: (a) The subscription contribution is more than % 7,500 per month per member and (b) The annual aggregate turnover of RWA by way of i a5 ieee poli y Way of supplying of services and goods isPara 6.12 EXEMPTIONS FROM GST 6.24 This can be further understood as under: S.No. Annual Turnover of RWA Monthly maintenance charge | Exempt as per Entry 77 1220 Lakhs or less | 27,500 oF less [ Yes More than % 7,500 L Yes 2. More than € 20 Lakhs | z75000r less Yes More than z7 No 4. ITC of GST paid: The RWAs are entitled to take ITC of GST paid by them on capital goods (generators, water pumps, lawn furniture etc.), goods (taps, pipes, other sanitary /hardware 1c.) and input services such as repair and maintenance services. The ceiling is per Residential Apartment: As per general business sense, a person who owns 2 or more residential apartments in a housing society/ residential complex shall normally be a member of the RWA for each residential apartment owned by him separately. The ceiling of 77,500 per month per member shall be applied separately for each residential apartment owned by him. For example: If @ person owns 2 residential apartments in a residential complex and pays ? 15,000 per month as maintenance charges towards maintenance of each apartment to the RWA (27,500 per month in respect of each residential apartment), the exemption from GST shall be available to each apartment 6. GST is payable on entire amount of maintenance charges: In case, the maintenance charges charged by a RWA from residents exceed % 7500 per month per member and the annual turnover of RWA is more than % 20 Lakh, the entire amount is taxable. For example: if the race charges are ® 8,000 per month per member, GST @18% shall be payable on the entire amount of 8,000. 6.12.2 Whether GST is applicable on Addi regards Entry No. 27] Statutory Provisions The related statutory provisions are as follows: (1) As per section 15(2)(d) of the CGST Act, the value of supply shalll include interest or late fee or penalty for delayed payment of any consideration for any supply. (2) Entry 27 of exemption notification, inter alia, exempts the servi deposits, loans or advances in so far as the consideration discount (other than interest involved in credit card se 's by way of extending represented by way of interest or ). Issue The following are the issues in this regard (a) Whether GST is applicable on additional/ penal interest on the overdue loan? PP! a (b) Whether such penal interest would be exempt under Entry 27 of exemption notification? (c) Whether it would be taxable treating it as consideration for liquidated damages (ie. under entry 5(e) of Schedule I of CGST Act, 2017)? Clarification When the penal interest is charged by the lender from borrower, for any delay in payment, in addition to interest, then this penal interest is also covered under exemption entry 27. But, in case additional /Penal interest is charged by supplier of goods, for delay in payment by the buyer beyond