Chhavi Daga

Chhavi Daga

GST Exemptions for Services under GST (Comparison with Negative List and Exempted Services covered under Service Tax)

The emergence of GST and a switch from service tax and other indirect taxes has led to a great confusion in the country. With the implementation of GST hopefully from 1st July, 2017, service provide are still unable to conclude whether GST will be applicable to them or not.

So, here is a comparison of the GST exemption list with the negative list and exempted services covered under service tax.

GST EXEMPTION LIST 

(Note: Additions and changes in the list as compared to service tax have been indicated by red colour.)

S.No. Particulars Currently Under Service Tax
1. Services by Government or a local authority excluding the following services

(i) 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 Government;

(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

(iii) transport of goods or passengers; or

(iv) any service, other than services covered under clauses (i) to (iii) above, provided to business entities

Section 66D – Negative List
2. Services by the Reserve Bank of India Section 66D – Negative List
3. Services by a foreign diplomatic mission located in India Section 66D – Negative List
4. 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 –

(i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing or

(ii) supply of farm labour;

(iii) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;

(iv) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;

(v)  loading, unloading, packing, storage or warehousing of agricultural produce;

(vi) agricultural extension services;

(vii)services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce

Section 66D – Negative List
5. Service by way of access to a road or a bridge on payment of toll charges Section 66D – Negative List
6. Transmission or distribution of electricity by an electricity transmission or distribution utility Section 66D – Negative List
7. Services by way of renting of residential dwelling for use as residence Section 66D – Negative List
8. Services by way of—

(i) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services);

(ii) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers

Section 66D – Negative List
9. Services by way of transportation of goods

(i) by road except the services of—

(A) a goods transportation agency; or

(B) a courier agency;

(ii) by inland waterways

Section 66D – Negative List
10. Services provided to the United Nations or a specified international organization.

Exemption may be notified by way of issuing notification under section 55 of CGST/SGST Act

E/N: 25/2012 – Entry 1

 

11. Services provided by operators of the Common Bio-medical Waste Treatment Facility to a clinical establishment by way of treatment or disposal of bio-medical waste or the processes incidental thereto E/N: 25/2012 – Entry 2B
12. Services by a veterinary clinic in relation to health care of animals or birds E/N: 25/2012 – Entry 2
13. Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable activities;[Charitable activities may be defined as presently in notification No 25/2012-ST E/N: 25/2012 – Entry 4
14. Services by a specified organisation in respect of a religious pilgrimage facilitated by the Ministry of External Affairs of the Government of India, under bilateral arrangement E/N: 25/2012 – Entry 5A
15. Services provided by-

(a) an arbitral tribunal to –

(i) any person other than a business entity; or

(ii)a business entity with a turnover up to rupees twenty lakh (ten lakh rupees in a special category state) in the preceding financial year;

(b) a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services to-

(i) an advocate or partnership firm of advocates providing legal services;

(ii) any person other than a business entity; or

(iii) a business entity with a turnover up to rupees twenty lakh (ten lakh rupees in a special category state) in the preceding financial year; or

(c) a senior advocate by way of legal services to-

(i) any person other than a business entity; or

(ii) a business entity up to rupees twenty lakh (ten lakh rupees in a special category state) in the preceding financial year

E/N: 25/2012 – Entry 6

· As per Finance Act, 1994, service provided to business entity with a turnover up to rupees ten lakh was exempt.

16. Services provided,-

(a) by an educational institution to its students, faculty and staff;

(b) to an educational institution, by way of,-

(i) transportation of students, faculty and staff;

(ii) catering, including any mid-day meals scheme sponsored by the Government;

(iii) security or cleaning or house-keeping services performed in such educational institution;

(iv)services relating to admission to, or conduct of examination by, such institution;

upto higher secondary.

Provided that nothing contained in clause (b) of this entry shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent

E/N: 25/2012 – Entry 9

· The definition of educational institution has not been defined till now.

· The proviso has been newly inserted.

 

17. Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development Programme, –

(a) two year full time residential Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT), conducted by Indian Institute of Management;

(b) fellow programme in Management;

(c)   five year integrated programme in Management

E/N: 25/2012 – Entry 9B
18. Services provided to a recognized sports body by-

(a) an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body;

(b)  another recognised sports body

E/N: 25/2012 – Entry 10
19. Services by an artist by way of a performance in folk or classical art forms of (i) music, or (ii)dance, or (iii)theatre, if the consideration charged for such performance is not more than one lakh and fifty thousand rupees:

Provided that the exemption shall not apply to service provided by such artist as a brand ambassador

E/N: 25/2012 – Entry 16
20. Services by way of collecting or providing news by an independent journalist, Press Trust of India or United News of India E/N: 25/2012 – Entry 17
21. Services by way of giving on hire –

(a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or

(b) to a goods transport agency, a means of transportation of goods

E/N: 25/2012 – Entry 22
22. Transport of passengers, with or without accompanied belongings, by –

(a) 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-airconditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire; or

(c) stage carriage other than air-conditioned stage carriage

E/N: 25/2012 – Entry 23
23. Services of life insurance business provided by way of annuity under the National Pension System regulated by Pension Fund Regulatory and Development Authority of India (PFRDA) under the Pension Fund Regulatory And Development Authority Act, 2013 (23 of 2013) E/N: 25/2012 – Entry 26C
24. Services of life insurance business provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds to members of the Army, Navy and Air Force, respectively, under the Group Insurance Schemes of the Central Government New Exemption
25. Services provided by an incubatee up to a total turnover of fifty lakh rupees in a financial year subject to the following conditions, namely:-

(a) the total turnover had not exceeded fifty lakh rupees during the preceding financial year; and

(b) a period of three years has not been elapsed from the date of entering into an agreement as an incubatee

E/N: 25/2012 – Entry 27
26. 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;

(b) for the provision of carrying out any activity which is exempt from the levy of GST; or

(c) up to an amount of five thousand rupees 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 complex

E/N: 25/2012 – Entry 28
27. Services by an organiser to any person in respect of a business exhibition held outside India E/N: 25/2012 – Entry 31
28. Services by way of slaughtering of animals E/N: 25/2012 – Entry 33
29. Services received from a provider of service located in a non- taxable territory by –

(a) Government, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession;

(b) an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) for the purposes of providing charitable activities; or

(c) a person located in a non-taxable territory;

Provided that the exemption shall not apply to –

(i) online information and database access or retrieval services received by persons specified in clause (a)or clause (b); or

(ii) services by  way  of transportation of goods by a vessel from a place outside India up to the customs  station of clearance in India received by persons specified in clause (c)

E/N: 25/2012 – Entry 34

· The proviso has been newly inserted.

 

30. Services of public libraries by way of lending of books, publications or any other knowledge-enhancing content or material E/N: 25/2012 – Entry 35
31. Services by Employees’ State Insurance Corporation to persons governed under the Employees’ Insurance Act, 1948 (34 of 1948) E/N: 25/2012 – Entry 36
32. Services by way of transfer of a going concern, as a whole or an independent part thereof E/N: 25/2012 – Entry 37
33. Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets E/N: 25/2012 – Entry 38
34. Services by government, local authority or governmental authority by way of any activity in relation to any function entrusted to a municipality under Article 243 W of the Constitution E/N: 25/2012 – Entry 39
35. Services received by the Reserve Bank of India, from outside India in relation to management of foreign exchange reserves E/N: 25/2012 – Entry 41
36. Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India E/N: 25/2012 – Entry 42
37. Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables E/N: 25/2012 – Entry 44
38. Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo E/N: 25/2012 – Entry 45
39. Services provided by Government or a local authority to a business entity with a turnover up to rupees twenty lakh (ten lakh rupees in a special category state) in the preceding financial year.

Explanation.- For the purposes of this entry, it is hereby clarified that the provisions of this entry shall not be applicable to:

(a) services at S. No. 1 (i), (ii)and (iii); and

(b) services by way of renting of immovable property

E/N: 25/2012 – Entry 48

· As per Finance Act, 1994, service provided to business entity with a turnover up to rupees ten lakh was exempt.

40. Services provided by Employees Provident Fund Organisation (EPFO) to persons governed under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) E/N: 25/2012 – Entry 49
41. Services provided by Insurance Regulatory and Development Authority of India (IRDA) to insurers under the Insurance Regulatory and Development Authority of India Act, 1999 (41 of 1999) E/N: 25/2012 – Entry 50
42. Services provided by Securities and Exchange Board of India (SEBI) set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors in securities and to promote the development of, and to regulate, the securities market E/N: 25/2012 – Entry 51
43. Services provided by National Centre for Cold Chain Development under Ministry of Agriculture, Cooperation and Farmer’s Welfare by way of cold chain knowledge dissemination E/N: 25/2012 – Entry 52
44. Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India E/N: 25/2012 – Entry 53
45. Services provided by Government or a local authority to another Government or local authority:

Provided that nothing contained in this entry shall apply to services at S. No. 1 (i), (ii)and (iii) above

E/N: 25/2012 – Entry 54
46. Services provided by Government or a local authority by way of issuance of passport, visa, driving licence, birth certificate or death certificate E/N: 25/2012 – Entry 55
47. Services provided by Government or a local authority by way of tolerating non-performance of a contract for which consideration in the form of fines or liquidated damages is payable to the Government or the local authority under such contract E/N: 25/2012 – Entry 57
48. Services provided by Government or a local 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

E/N: 25/2012 – Entry 58
49. Services provided by Government or a local authority 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

 

E/N: 25/2012 – Entry 59

· As per Finance Act, 1994, services provided by Government or a local authority by way of assignment of right to use natural resources to an individual farmer for AGRICULTURE was exempt.

· The word ‘agriculture’ has now been replaced and clearly defined.

50. Services by Government, a local authority or a governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution:

this shall be continued by way of notification under section 7(2)(b) of CGST/SGST Acts

E/N: 25/2012 – Entry 60
51. Services provided by Government or a local authority by way of assignment of right to use any natural resource where such right to use was assigned by the Government or the local authority before the 1st April, 2016:

Provided that the exemption shall apply only to service tax payable on one time charge payable, in full upfront or in installments, for assignment of right to use such natural resource

E/N: 25/2012 – Entry 61
52. Services provided by Government or a local authority by way of allowing a business entity to operate as a telecom service provider or use radiofrequency spectrum during the period prior to 1st April, 2016, on payment of licence fee or spectrum user charges, as the case may be E/N: 25/2012 – Entry 62
53. Services provided by Government by way of deputing officers after office hours or on holidays for inspection or container stuffing or such other duties in relation to import export cargo on payment of Merchant Overtime charges (MOT) E/N: 25/2012 – Entry 63
54. Services by an acquiring bank, to any person in relation to settlement of an amount upto two thousand rupees in a single transaction transacted through credit card, debit card, charge card or other payment card service.

Explanation. — For the purposes of this entry, “acquiring bank” means any banking company, financial institution including non-banking financial company or any other person, who makes the payment to any person who accepts such card

New Exemption
55. Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by Indian Railways Finance Corporation to Indian Railways New Exemption
56. Services provided by any person for official use of a foreign diplomatic mission or consular post in India or for personal use or for the use of the family members of diplomatic agents or career consular officers posed therein. This exemption is available on reciprocal basis based on a certificate issued by MEA (Protocol Division):

this shall be continued by way of notification under section 55 of CGST/SGST Acts

E/N: 25/2012 – Entry 1
57. Taxable services, provided or to be provided, by a Technology Business Incubator (TBI) or a Science and Technology Entrepreneurship Park (STEP) recognized by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India or bio-incubators recognized by the Biotechnology Industry Research Assistance Council, under Department of Biotechnology, Government of India E/N: 25/2012 – Entry 27
58. Taxable service provided by State Government Industrial Development Corporations/ Undertakings to industrial units by way of granting long term (thirty years, or more) lease of industrial plots from so much of tax leviable thereon, as is leviable on the one time upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for such lease Notification No. 41/2016-ST
59. Services provided to the government by way of transport of passengers with or without accompanied belongings, by air, embarking from or terminating at a regional connectivity scheme airport, against consideration in the form of viability gap funding (VGF).

Provided that nothing contained in this entry shall apply on or after the expiry of a period of 1 year from the date of commencement of operations of the regional connectivity scheme airport as notified by the Ministry of Civil Aviation

Notification No. 38/2016-ST- 90% exempt.

· Under the GST Act, fully exempt.

 

60. Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation E/N: 25/2012 – Entry 2A
61. Services by way of training or coaching in recreational activities relating to,-

(i) arts or culture. or

(ii) sports by charitable entities registered under section 12AA of Income tax Act, 1961

E/N: 25/2012 – Entry 8
62. Any services provided by, _

(i) the National Skill Development Corporation set up by the Government of India;

(ii) a Sector Skill Council approved by the National Skill Development Corporation;

(iii) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;

(iv) a training partner approved by the National Skill Development Corporation or the Sector Skill Council in relation to

(a) the National Skill Development Programme implemented by the National Skill Development Corporation; or

(b) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or

(c) any other Scheme implemented by the National Skill Development Corporation

E/N: 25/2012 – Entry 9A
63. Services of assessing bodies empanelled centrally by Directorate General of Training, Ministry of Skill Development and Entrepreneurship by way of assessments under Skill Development Initiative (SDI) Scheme E/N: 25/2012 – Entry 9C
64. Services provided by training providers (Project implementation agencies) under Deen Dayal Upadhyaya Grameen Kaushalya Yojana under the Ministry of Rural Development by way of offering skill or vocational training courses certified by National Council For Vocational Training E/N: 25/2012 – Entry 9D
65. Services by way of sponsorship of sporting events organised,-

(a) by a national sports federation, or its affiliated federations, where the participating teams or individuals represent any district, State, zone or Country;

(b) 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;

(c) by Central Civil Services Cultural and Sports Board;

(d) as part of national games, by Indian Olympic Association; or

(e) under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme

E/N: 25/2012 – Entry 11
66. Services provided by way of pure labour contracts of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the Beneficiary-led individual house construction/enhancement under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (PMAY) E/N: 25/2012 – Entry 13

· Entry 13 includes various other construction services which are not included in the GST exemption list.

67. Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single residential unit otherwise than as a part of a residential complex E/N: 25/2012 – Entry 14

· Entry 14 includes various other construction services which are not included in the GST exemption list.

 

68. Services of general insurance business provided under following schemes –

(a) Hut Insurance Scheme;

(b) Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna (earlier known as Integrated Rural Development Programme);

(c) Scheme for Insurance of Tribals;

(d) Janata Personal Accident Policy and Gramin Accident Policy;

(e) Group Personal Accident Policy for Self-Employed Women;

(f) Agricultural Pumpset and Failed Well Insurance;

(g) Premia collected on export credit insurance;

(h) Weather Based Crop Insurance Scheme or the Modified National Agricultural Insurance Scheme, approved by the Government of India and implemented by the Ministry of Agriculture;

(i) Jan Arogya Bima Policy;

(j) National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana);

(k) Pilot Scheme on Seed Crop Insurance;

(l) Central Sector Scheme on Cattle Insurance;

(m) Universal Health Insurance Scheme;

(n) Rashtriya Swasthya Bima Yojana; or

(o) Coconut Palm Insurance Scheme;

(p) Pradhan Mantri Suraksha BimaYojna;

(q) Niramaya Health Insurance Scheme implemented by Trust constituted under the provisions of the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); or

(r) Any other insurance scheme of the State Government as may be notified by Government of India on the recommendation of GSTC

E/N: 25/2012 – Entry 26
69. Services of life insurance business provided under following schemes –

(a) Janashree Bima Yojana (JBY); or

(b) Aam Aadmi Bima Yojana (AABY);

(c) Life micro-insurance product as approved by the Insurance Regulatory and Development Authority, having maximum amount of cover of fifty thousand rupees;

(d) Varishtha Pension BimaYojana;

(e) Pradhan Mantri Jeevan JyotiBimaYojana;

(f) Pradhan Mantri Jan DhanYogana;

(g) Pradhan Mantri Vaya Vandan Yojana; and

(h) Any other insurance scheme of the State Government as may be notified by Government of India on the recommendation of GSTC

E/N: 25/2012 – Entry 26A

· Point (h) has been newly inserted.

70. Services by way of collection of contribution under Atal Pension Yojana (APY) E/N: 25/2012 – Entry 26B
71. Services by way of collection of contribution under any pension scheme of the State Governments New Exemption
72. Service of transportation of passengers, with or without accompanied belongings, by—

(i) railways in a class other than—

(A) first class; or

(B) an air-conditioned coach;

(iii) metro, monorail or tramway;

(iv) inland waterways;

(v) public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and

(vi) metered cabs or auto rickshaws (including E-rickshaws)

Section 66D – Negative List
73. Services by a person by way of-

(a) conduct of any religious ceremony;

(b) 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 (hereinafter referred to as the Income-tax Act), or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of section 10 of the Income-tax Act:

Provided that nothing contained in (b) of this exemption shall apply to,-

(i) renting of rooms where charges are Rs 1000/- or more per day;

(ii) renting of premises, community halls, kalyanmandapam or open area, etc where charges are Rs 10,000/- or more per day;

(iii) renting of shops or other spaces for business or commerce where charges are Rs 10,000/-or more per month

E/N: 25/2012 – Entry 5

· The proviso has been newly inserted.

 

74. Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation less than one thousand rupees per day or equivalent E/N: 25/2012 – Entry 18
75. Services by way of transportation by rail or a vessel from one place in India to another of the following goods –

(a) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;

(b) defence or military equipments;

(c) newspaper or magazines registered with the Registrar of Newspapers;

(d) railway equipments or materials;

(e) agricultural produce;

(f) milk, salt and food grain including flours, pulses and rice; and

(g) organic manure

E/N: 25/2012 – Entry 20

· Chemical Fertilizers;

· Oil Cakes; and

· Cotton, ginned or baled

were also exempt as per Finance Act, 1994

76. Services provided by a goods transport agency, by way of transport in a goods carriage of,-

(a) agricultural produce;

(b) goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

(c) goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred fifty;

(d) milk, salt and food grain including flour, pulses and rice;

(e) organic manure;

(f) newspaper or magazines registered with the Registrar of Newspapers;

(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or

(h) defence or military equipment’s

E/N: 25/2012 – Entry 21

· Chemical Fertilizers;

· Oil Cakes; and

· Cotton, ginned or baled

were also exempt as per Finance Act, 1994

77. Services by the following persons in respective capacities –

(a) business facilitator or a business correspondent to a banking company with respect to accounts in its rural area branch;

(b) any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in clause (g); or

(c) business facilitator or a business correspondent to an insurance company in a rural area

 

E/N: 25/2012 – Entry 29

The following were also exempt under Finance Act, 1994:

· sub-broker or an authorised person to a stock broker;

· authorised person to a member of a commodity exchange;

·  selling agent or a distributer of SIM cards or recharge coupon vouchers;

· Sub – contractor providing services by way of works contract to another contractor providing works contract services which are exempt.

78. Carrying out an intermediate production process as job work in relation 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

 

· As per E/N: 25/2012 – Entry 30 job work in relation to the following was exempt:

(a) agriculture, printing or textile processing;

(b)  cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of the Central Excise Tariff Act ,1985 (5 of 1986);

(c) any goods excluding alcoholic liquors for human consumption, on which appropriate duty is payable by the principal manufacturer; or

(d) processes of electroplating, zinc plating, anodizing, heat treatment, powder coating, painting including spray painting or auto black, during the course of manufacture of parts of cycles or sewing machines upto an aggregate value of taxable service of the specified processes of one hundred and fifty lakh rupees in a financial year subject to the condition that such aggregate value had not exceeded one hundred and fifty lakh rupees during the preceding financial year.

· The word ‘agriculture’ has now been replaced and clearly defined.

79. Services by way of loading, unloading, packing, storage or warehousing of rice

 

E/N: 25/2012 – Entry 40

· As per Finance Act, 1994, cotton, ginned or baled was also exempt.

80. Services by way of right to admission to, –

(i) circus, dance, or theatrical performance including drama or ballet;

(ii) award function, concert, pageant, musical performance or any sporting event other than a recognized sporting event;

(iii) recognised sporting event;

where the consideration for admission is not more than Rs 250 per person in (i), (ii) and (iii) above

E/N: 25/2012 – Entry 47

· As per Finance Act, 1994, admission to exhibition of cinematographic film was also exempt.

· Under Service Tax the exemption was allowed up to Rs. 500 per person.

 

81. Services provided by Government or a local authority where the gross amount charged for such services does not exceed Rs.5000/.

Provided that nothing contained in this entry shall apply to services S. No. 1 (i), (ii)and (iii) above:

Provided further that in case where continuous supply of service, as defined in sub-section (33) of section2 of the CGST Act, 2017, is provided by the Government or a local authority, the exemption shall apply only where the gross amount charged for such service does not exceed Rs. 5000/- in a financial year; [This may be continued by way of an omnibus threshold exemption from payment of GST under section 9 (4) of CGST/SGST Act in respect of supplies upto Rs 10,000/-]

E/N: 25/2012 – Entry 56
82. (i) Health care services by a clinical establishment, an authorised medical practitioner or para-medics;

(ii) Services provided by way of transportation of a patient in an ambulance, other than those specified in (i) above

E/N: 25/2012 – Entry 2
83. Services provided by the Goods and Services Tax Network (GSTN) to the Central Government or State Governments/Union Territories for implementation of Goods and Services Tax (GST) New Exemption
84. Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to Government, a local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or to any function entrusted to a Municipality under Article 243W of the Constitution New Exemption –

As decided in GST Council in the 16th meeting held on 11th of June 2017

85. Services provided to the Government under any insurance scheme for which total premium is paid by Government New Exemption –

As decided in GST Council in the 16th meeting held on 11th of June 2017

86. Services provided to the Government under any training programme for which total expenditure is borne by the Government New Exemption –

As decided in GST Council in the 16th meeting held on 11th of June 2017

The concept of ‘supply’ is the key stone of the GST architecture which determines the taxability of an activity. Schedule III of the CGST Act determines the activities or transactions which shall be treated neither as supply of goods nor a supply of services.

SCHEDULE III

S.No. Particulars Currently Under Service Tax
1. Services by an employee to the employer in the course of or in relation to his employment. Excluded from definition of service
2. Services by any court or Tribunal established under any law for the time being in force. Excluded from definition of service
3. (a) the functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities;

(b) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or

(c) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause.

Excluded from definition of service
4. Services of funeral, burial, crematorium or mortuary including transportation of the deceased Covered under Sec 66D – ST (Negative List)
5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II (supply of services), sale of building. Sale/ Deemed Sale was excluded from definition of service
6. Actionable claims, other than lottery, betting and gambling. Excluded from definition of service

ITEMS EARLIER COVERED UNDER SEC 66D (NEGATIVE LIST) OF SERVICE TAX NOW TAXABLE

1. Trading of goods

2. Selling of space for advertisement in Print Media.

3. Betting, gambling and lottery

ITEMS EARLIER COVERED UNDER E/N: 25/2012 OF SERVICE TAX NOW TAXABLE

(Not Covered in the Above Tables)

1. Entry 12-

Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –

  • a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);
  • canal, dam or other irrigation works;
  • pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal;

2. Entry 12A-

Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of:

  • a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;
  • a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or
  • a residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause (44) of section 65 B of the said Act; under a contract which had been entered into prior to the 1st March, 2015 and on which appropriate stamp duty, where applicable, had been paid prior to such date: provided that nothing contained in this entry shall apply on or after the 1st April, 2020.

3. Entry 13-

Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-

  • a road, bridge, tunnel, or terminal for road transportation for use by general public;
  • a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;
  • a civil structure or any other original works pertaining to the „In-situ rehabilitation of existing slum dwellers using land as a resource through private participation‟under the Housing for All (Urban) Mission!Pradhan Mantri Awas Yojana, only for existing slum dwellers. (with effect from 1st March, 2016)
  • a building owned by an entity registered under section 12 AA of the Income tax Act, 1961(43 of 1961) and meant predominantly for religious use by general public; (d) a pollution control or effluent treatment plant, except located as a part of a factory; or a structure meant for funeral, burial or cremation of deceased;

(Note: a civil structure or any other original works pertaining to the „Beneficiary-led individual house construction/ enhancement under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana – still exempt)

4. Entry 14-

Services by way of construction, erection, commissioning, or installation of original works pertaining to, (As substituted with effect from 1st March, 2016)

  • railways, excluding monorail and metro;

Explanation: The services by way of construction, erection, commissioning or installation of original works pertaining to monorail or metro, where contracts were entered into before 1st March, 2016, on which appropriate stamp duty, was paid, shall remain exempt.

  • low- cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the „Scheme of Affordable Housing in Partnership‟ framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India; (with effect from 1st March, 2016)
  • low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under: (i) the “Affordable Housing in Partnership” component of the Housing for All (Urban) Mission!Pradhan Mantri Awas Yojana; (ii) any housing scheme of a State Government.
  • post- harvest storage infrastructure for agricultural produce including cold storages for such purposes; or
  • mechanised food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages.

(Note: a single residential unit otherwise than as a part of a residential complex – still exempt)

5. Entry 14A-

Services by way of construction, erection, commissioning, or installation of original works pertaining to an airport or port provided under a contract which had been entered into prior to 1st March, 2015 and on which appropriate stamp duty, where applicable, had been paid prior to such date: provided that Ministry of Civil Aviation or the Ministry of Shipping in the Government of India, as the case may be, certifies that the contract had been entered into before the 1st March, 2015: provided further that nothing contained in this entry shall apply on or after the 1st April, 2020

6. Entry 15-

Services provided by way of temporary transfer or permitting the use or enjoyment of a copyright, (a) covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 (14 of 1957), relating to original literary, dramatic, musical or artistic works; or (b) of cinematograph films for exhibition in a cinema hall or cinema theatre.

7. Entry 19-

Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year.

8. Entry 19A-

Services provided in relation to serving of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 (63 of 1948), having the facility of air-conditioning or central air-heating at any time during the year.

9. Entry 25-

Services provided to Government, a local authority or a governmental authority by way of:

  • water supply, public health, sanitation conservancy, solid waste management or slum improvement and up-gradation; or;
  • repair or maintenance of a vessel

10. Entry 43-

Services by operator of common effluent treatment plant by way of treatment of effluent.

11. Entry 46-

Service provided by way of exhibition of movie by an exhibitor to the distributor or an association of persons consisting of the exhibitor as one of its members. 

(Chhavi Daga, Contact: +919636401543, Email: chhavi.jsco@gmail.com)

Note: Every effort has been made to avoid errors or omissions in the above article. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice, which shall be taken care of.

More Under Goods and Services Tax

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Category : Goods and Services Tax (4198)
Type : Articles (13915)
Tags : goods and services tax (2763) GST (2349)

12 responses to “GST Exemptions for Services under GST (Comparison with Negative List and Exempted Services covered under Service Tax)”

  1. Vishnuprasad says:

    Sir, we are in hyderabad ,living in apartment ,and we call it as owners welfare association,duly registered under some society act prevailing in Telangana state.In Maharashtra they call such associations as society,whereas in hyderabad ,we call as flat owners association .do the residents paying to the associations for amenities have to pay any GST related tax ? If so what is the tax %.should we get GSTIN number? Kindly clarify.

  2. Dilip luhar says:

    Dear sir / Madam

    We are providing Solid waste management to municipal corporation is GST applicable for us. please guide me

  3. Manohar says:

    Is fees collected for a short term medical course say 15 days, medical conferences and workshops conducted by a medical college subject to GST?

  4. Rajendra Kumar Bagra says:

    What is status of a broker, commission agent in Gst ,who is giving service in “agri products” in entire nation.

  5. DEEPAK KUMAR SAHU says:

    FERTILIZERS EXEMPTION NOTIFICATIONS AS PER GST(PHOSPHATE)

  6. mnbhawe says:

    Are the consultant fees of a technical or marketing consultant chargeable to GST?
    Must such consultant register himself even if the fees are less than Rs. 20 lakh in any assessment year?

  7. D Thakkar says:

    Excellent and very informative articles.

    Pls clarify whether reverse charge under GST would be applicable in case where government or local authority acquires goods or services from unregistered dealers.

    • Chhavi Daga says:

      Thank You Sir.

      Yes, Section 9 (4) will be applicable on taxable person and as per definition of person the same is applicable to government and local authority as well.

    • Chhavi Daga says:

      Thank you sir.

      Yes, section 9 (4) will be applicable on taxable person and as per definition of person, the same will be applicable government and local authority as well.

  8. Dilip. Thakkar says:

    When some crops are treated as agriculture product by one department and not by other department which should be considered
    For example. Dry grapes are considered as agri products in some of gov schemes and there is no perfect definition of dry grapes as non agriculture item
    Which department should be followed ?

    • Chhavi Daga says:

      As per section 23 an agriculturist, to the extent of supply of produce out of cultivation of land is not liable to be registered in GST.

      And as per section 2 (7) “agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land— (a) by own labour, or (b) by the labour of family, or (c) by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family;

      So your question has no relevance for applicability of GST

      Further for applicability of Tax on a particular product please see Tax Rate List.

  9. PARESH PAREKH says:

    Very exhaustive coverage.

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