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Article Compares Tax Exemption under Service Tax Regime and under GST Regimes. Article discusses exemption which was there in Service Tax Regime but been deleted under GST Regime and also the exemptions which were not there in Service tax Regime but been added in GST regime. Service Tax exemptions which has been segregated in multiple entries.
Summary of Exemptions
| Total No. of Entries in Negative List | 17 |
| (+) Total No. of Entries in Mega Exemption | 65 |
| Total No. of Entries in Service Tax | 82 |
| (+) New Entries Added in GST (Annexure 1) | 10 |
| (+) 5 entries of Service tax segregated into 14 entries in GST | 9 |
| (-) Entries deleted in GST that was earlier in negative list in service tax (Annexure 2) | 7 |
| (-) Entries deleted in GST that was earlier in mega exemption in service tax (Annexure 3) | 13 |
| Total No. of entries in GST | 81 |
| Some entries are modified also. Please refer (Annexure 4) |
Annexure 1 – Additions in GST
| Entry No. | Particulars |
| 3 | Pure services (excluding works contract service or 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 by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution |
| 38 | Services by way of collection of contribution under any pension scheme of the State Governments |
| 39 | entry 29 of mega exemption clause g,(ga), (gb) (g) business facilitator or a business correspondent to a banking company with respect to accounts in its rural area branch;” substituted vide Notification 1/2017 –Service Tax (ga) any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in clause (g); (gb) business facilitator or a business correspondent to an insurance company in a rural area. |
| 40 | Services provided to the Central Government, State Government, Union territory under any insurance scheme for which total premium is paid by the Central Government, State Government, Union territory. |
| 41 | One time upfront amount (called as premium, salami, cost, price, development charges or by any other name) leviable in respect of the service, by way of granting long term (thirty years, or more) lease of industrial plots, provided by the State Government Industrial Development Corporations or Undertakings to industrial units. |
| 43 | Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by the Indian Railways Finance Corporation to Indian Railways |
| 48 | Taxable services, provided or to be provided, by a Technology Business Incubator or a Science and Technology Entrepreneurship Park recognised by the National Science and Technology Nil Nil 13 Entrepreneurship Development Board of the Department of Science and Technology, Government of India or bioincubators recognised by the Biotechnology Industry Research Assistance Council, under the Department of Biotechnology, Government of India. |
| 51 | Services provided by the Goods and Services Tax Network to the Central Government or State Governments or Union territories for implementation of Goods and Services Tax. |
| 55 | 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 |
| 72 | 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, State Government, Union territory administration. |
Annexure 2 – Deletion of entries from Negative List in GST
| e | Trading of goods |
| f | Services by way of carrying out any process amounting to manufacture or production of goods excluding alcohol liquor for human consumption. |
| g | Selling of space for advertisement in print media. |
| i | Betting, gambling or lottery; Explanation. – For the purposes of this clause, the expression “betting, gambling or lottery” shall not include the activity specified in Explanation2 to clause (44) of section 65B; |
| j | Admission to entertainment events or access to amusement facilities. |
| l | Services by way of – (i) pre school education and upto higher secondary school or equivalent. (ii) education as a part of curriculam for obtaining a qualification recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course. |
| q | Funeral, burial, crematorium or mortuary services including transportation of the deceased. |
Annexure 3 – Deletion of entries from Mega exemption in GST
| 1 | Services provided to the United Nations or a specified international organization; |
| 7 | Services by way of technical testing or analysis of newly developeddrugs, including vaccuines and herbal remedies on human participants by clinical research organisation. |
| 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) *** (b) 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); (c) *** (d) canal, dam or other irrigation works; (e) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal |
| 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; (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; |
| 24 | Services by way of vehicle parking to general public excluding leasing of space to an entity for providing such parking facility. |
| 25 | Services provided to Government, a local authority or a governmental authority by way of (a) water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation; or (b) repair or maintenance of [a vessel]; |
| 29 | Services by the following persons in respective capacities –
(a) sub-broker or an authorised person to a stock broker; (b) authorised person to a member of a commodity exchange; (f) selling agent or a distributer of SIM cards or recharge coupon vouchers; “(g) business facilitator or a business correspondent to a banking company with respect to accounts in its rural area branch;” substituted vide Notification 1/2017 –Service Tax (ga) any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in clause (g); (gb) business facilitator or a business correspondent to an insurance company in a rural area;or (h) sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt; |
| 30 | Services by way of carrying out,- (i) any process amounting to manufacture or production of goods excluding alcoholic liquor for human consumption; or (ii) any intermediate production process as job work not amounting to manufacture or production in relation to – (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;” substituted vide notification 7/2017 to be effective from the date the Finance Bill 2017 receives the assent of the President. |
| 32 | Services by way of making of telephone calls from,(a) Departmentally run public telephone, (b) free telephone at airport and hospital where no bills are being issued. |
| 41 | Services received by the Reserve Bank of India, from outside India in relation to management of foreign exchange reserves; |
| 42 | Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India. |
| 43 | Services by operator of Common Effluent Treatment Plant by way of treatment of effluent; |
| 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;” |
Annexure 4 – Modifications
| Service Tax | GST | ||
| S No. | Service Tax Exemptions | S No. | Addition or Changes in GST Exemptions |
| 48 | Aggregate turnover upto Rs 10 lakhs | 7 | Aggregate turnover upto Rs 20 lakhs instead of Rs 10 Lakhs. |
| 13(bb) | 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;”; Inserted vide Notification 9/2016- Service Tax to be in effect from 1 March 2016 | 10 | Addition of word Pure Labour Contracts |
| 14(b) | a single residential unit otherwise than as a part of a residential complex; | 11 | Addition of word Pure Labour Contracts |
| 21 | 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; or (c) goods, where gross amount charged for transportation of all such goods for a single consignee in the goods carriage does not exceed rupees seven hundred fifty; (d) milk,salt and food grain including flours, pulses and rice; (e) chemical fertilizer, organic manure and oilcakes; (f) newspapers 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 equipments; (i) cotton, ginned or baled. | 21 | Deletion of point (i) coton , ginned, baled. |
| 20 | Services by way of transportation by rail or a vessel from one place in India to another of the following goods – (a) *** (b) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; (c) defence or military equipments; (d) ****; (e) ****; (f) newspaper or magazines registered with the Registrar of Newspapers; (g) railway equipments or materials; (h) agricultural produce; (i) milk,salt and food grain including flours, pulses and rice (j) chemical fertilizer, organic manure and oilcakes; (k) cotton, ginned or baked. | 20 | Deletion of point (k) coton , ginned, baled. |
| 40 | Services by way of loading, unloading, packing, storage or warehousing of rice, cotton, ginned or baled; | 24 | Deletion of words cotton, ginned or baled; |
| 8 | Services by way of training or coaching in recreational activities relating to arts, culture or sports; | 80 | Addition -Sports by charitable entities registered under section 12AA of the Income-tax Act. |
| 26(A) | 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 Bima Yojana; (e) Pradhan Mantri Jeevan Jyoti Bima Yojana; (f) Pradhan Mantri Jan DhanYojana; | 36 | Addition (g) Pradhan Mantri Vaya Vandan Yojana |
| 6 | Aggregate turnover upto Rs 10 lakhs | 45 | Aggregate turnover upto Rs 20 lakhs instead of Rs 10 Lakhs. |
| 59 | Services provided by Government or a local authority by way of assignment of right to use natural resources to an individual farmer for the purposes of agriculture; | 63 | Addition – rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products. |
| 47 | Services by way of right to admission to,- (i) exhibition of cinematographic film, circus, dance, or theatrical performance including drama or ballet; (ii) (ii) recognised sporting event; (iii) award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event, where the consideration for admission is not more than Rs 500 per person. | 81 | Services by way of right to admission to- (a) circus, dance, or theatrical performance including drama or ballet; (b) award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event; (c) recognised sporting event, where the consideration for admission is not more than Rs 250 per person as referred to in (a), (b) and (c) above. |
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Well explained Sir,
Sir,
Can you clarify about the exemption under GST of the existing exemption under Notification No.25/2012 Service Tax………..as given below
13. Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-
(a) a road, bridge, tunnel, or terminal for road transportation for use by general public;
14. Services by way of construction, erection, commissioning, or installation of original works pertaining to,-
(a) an airport, port or railways, including monorail or metro;