DMFTs Eligible for GST Exemptions as Governmental Authorities, CBIC Clarifies [Read Circular]

The Central Board of Indirect Taxes and Customs (CBIC), vide circular no. 206/18/2023-GST issued on 31st October 2023 has clarified District Mineral Foundations Trusts (DMFTs) Eligible for GST Exemptions as Governmental Authorities.

DMFTs function in the best interests of individuals and regions impacted by mining-related activities. They oversee the management of funds established in the respective districts, known as Mineral Development Funds. These funds are used to provide services that include, but are not limited to, drinking water supply, environmental protection, healthcare facilities, education, support for women and children, and the provision of medical equipment.

The nature of these activities closely resembles those listed in the Eleventh Schedule and Twelfth Schedule of the Constitution. The ultimate beneficiaries of the various programs under DMF are individuals, families, women and children, farmers, producer groups, and self-help groups (SHGs) in areas affected by mining operations. It's important to note that the services and supplies funded by the DMF are offered free of charge, and no fees are collected from the beneficiaries by the DMF for these services.

Consequently, the board has clarified that the DMFTs established by the State Governments are considered as Governmental Authorities. As such, they are eligible for the same GST exemptions granted to any other Governmental Authority.

To Read the full text of the Order CLICK HERE

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