Changes in Mega Exemption List of Services

Seeks to amend notification No. 25/2012-Service Tax, dated 20th June 2012, so as to amend certain existing entries granting exemption on specified services and inserting new entries for granting exemption from service tax on specified services.

CBEC with effect from 1st April 2015, as otherwise provided,vide Notification No. 6/2015-ST, Dated: March 01, 2015 has amended the Mega Exemption notification No. 25/2012-Service Tax, dated 20th June 2012,as follows:

(i) Exemption to any service provided by way of transportation of a patient to and from a clinical establishment. All ambulance services are covered within the scope of this exemption.[Entry 2]

(ii) Exemption presently available on specified services of construction, repair, maintenance, renovation or alteration service provided to the Government, a local authority, or governmental authority shall be limited only to:-

a) a historical monument, archaeological site or remains of national importance, archaeological excavation or antiquity;

b) canal, dam or other irrigation work; and

c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or

(iii) sewerage treatment or disposal.

Exemption to other services presently covered under S. No. 12 of notification No. 25/12-ST is being withdrawn.[Entry 12]

(iii) Exemption to construction, erection, commissioning or installation of original works pertaining to an airport or port provide vide entry 14 is being withdrawn. However the other exemptions covered under entry 14 will continue unaltered.[Entry 14]

(iv) Exemption to services provided by a performing artist in folk or classical art form of (i) music, or (ii) dance, or (iii) theatre, will be limited only to such cases where amount charged is upto Rs 1,00,000 for a performance.[Entry 16]

(v) Exemption to transportation of food stuff by rail, or vessels or road will be limited to food grains including rice and pulses, flour, milk and salt. Transportation of agricultural produce is separately exempt, and this exemption would continue.[Entry 20 & 21]

(vi) Exemption to Life insurance service provided by way of Varishtha Pension BimaYojna.[Entry 26A]

(vii) Exemptions are being withdrawn and service tax payable under reverse charge on the following services:

a) services provided by a mutual fund agent to a mutual fund or assets management company,

b) distributor to a mutual fund or AMC,

c) selling or marketing agent of lottery ticket to a distributor.[Entry 29]

(viii) Exemption to services for carrying out of intermediate production process of alcoholic liquor for human consumption on job work being withdrawn. The change shall come into effect from a date to be notified after the enactment of the Finance Bill, 2015.[Entry 30]

(ix) Exemption is being withdrawn on the following service,-

a) Departmentally run public telephone;

b) Guaranteed public telephone operating only local calls;

c) Service by way of making telephone calls from free telephone at airport and hospital where no bill is issued.[Entry 32]

(x) Exemption to Service provided by a Common Effluent Treatment Plant operator for treatment of effluent. [Entry 43]

(xi) Exemption to Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables.[Entry 44]

(xii) Exemption to Service provided by way of admission to a museum, zoo, national park, wild life sanctuary and a tiger reserve. These services when provided by Government or local authority are covered under Negative List.[Entry 45]

(xiii) Exemption to Service provided by way of exhibition of movie by the exhibitor (theatre owner) to the distributor or an association of persons consisting of such exhibitor as one of it’s members.[Entry 46]

(xiv) Exemption to service by way of right to admission to,-

a) exhibition of cinematographic film, circus, dance, or theatrical performances including drama or ballet.

b) recognized sporting events.

c) concerts, pageants, award functions, musical performances or sporting events not covered by S. No. ii, where the consideration for such admission is uptoRs. 500 per person.[Entry 47]

Notification No. 6/2015-ST Dated: March 01, 2015

 G.S.R. 160(E) In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 25/2012 – Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 467 (E), dated the 20th June, 2012, namely:-

1. In the said notification,-

(i) for entry 2, the following entry shall be substituted, namely,-

“2. (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;”;

(ii) in entry 12, items (a), (c) and (f) shall be omitted;

(iii) in entry 14, in item (a), the words “an airport, port or” shall be omitted;

(iv) for entry 16, the following entry shall be substituted, namely:-

“16. 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 rupees:

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

(v) in entry 20, for item (i), the following item shall be substituted, namely:-

“(i) milk, salt and food grain including flours, pulses and rice;”;

(vi) in entry 21, for item (d), the following item shall be substituted, namely:-

“(d) milk, salt and food grain including flours, pulses and rice;”;

(vii) in entry 26A, after item (c), the following item shall be inserted, namely-

“(d) Varishtha Pension Bima Yojana;”;

(viii) in entry 29, items (c), (d) and (e) shall be omitted;

(ix) in entry 30, in item (c), for the words “any goods”, the words “any goods excluding alcoholic liquors for human consumption,” shall be substituted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint;

(x) entry 32 shall be omitted;

(xi) after entry 42, the following entries shall be inserted, namely,-

“43. Services by operator of Common Effluent Treatment Plant by way of treatment of effluent;

44. 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;

45. Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo;

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;”;

(xii) after entry 46 so inserted, the following entry shall be inserted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, namely:-

“47. Services by way of right to admission to,-

(i) exhibition of cinematographic film, circus, dance, or theatrical performance including drama or ballet;

(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.”.

2. In the said notification, in paragraph 2 relating to Definitions,-

(a) after clause (xa), the following clause shall be inserted, namely:-

‘(xaa) “national park’ has the meaning assigned to it in the clause (21) of the section 2 of The Wild Life (Protection) Act, 1972 (53 of 1972);’;

(b) after clause (zaa), the following clause shall be inserted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, namely:-

‘(zab) “recognised sporting event” means any sporting event,-

(i) organised by a recognised sports body where the participating team or individual represent any district, state, zone or country;

(ii) covered under entry 11.’;

(c) for the clause (zi), the following clauses shall be substituted, namely:-

‘(zi) “tiger reserve” has the meaning assigned to it in clause (e) of section 38K of the Wild Life (Protection) Act, 1972 (53 of 1972);

(zj) “trade union” has the meaning assigned to it in clause (h) of section 2 of the Trade Unions Act, 1926 (16 of 1926);

(zk) “wildlife sanctuary” means sanctuary as defined in the clause (26) of the section 2 of The Wild Life (Protection) Act, 1972 (53 of 1972);

(zl) “zoo” has the meaning assigned to it in the clause (39) of the section 2 of the Wild Life (Protection) Act, 1972 (53 of 1972).’.

3. Save as otherwise provided in this notification, this notification shall come into force on the 1st of April, 2015.

[F. No.334/5/2015 -TRU]

(Akshay Joshi)
Under Secretary to the Government of India

Note:- The principal notification was published in the Gazette of India, Extraordinary, by notification No. 25/2012 – Service Tax, dated the 20th June, 2012, vide number G.S.R. 467 (E), dated the 20th June, 2012 and last amended vide notification No.17/2014 – Service Tax, dated the 20th August, 2014 vide number G.S.R. 598((E), dated the 20th August, 2014.