Govt notifies GST Exemption to certain Services [Read Notification]

AAR - pure services - GST - GST Exemption -Taxscan

The Central Board of Indirect Taxes and Customs ( CBIC ) has exempted certain services from the purview of the Goods and Services Tax ( GST ) as per the recommendations of the GST Council on 21st July 2018.

As per the notification, the Government exempted services by way of artificial insemination of livestock (other than horses).  Warehousing of minor forest produce in line with exemptions provided to the agricultural products are also exempted.

Further, the works of installation and commissioning undertaken by DISCOMS/ electricity distribution companies for extending electricity distribution network up to the tube well of the farmer/ agriculturalist for agricultural use and the services provided by FSSAI to food business operators are exempted.

As part of encouraging social security measures, the Government has exempted services provided by Coal Mines Provident Fund Organisation to the PF subscribers from the applicability of GST on the lines of EPFO, supply of services by an old age home run by State / Central Government or by a body registered under 12AA of Income Tax Act) to its residents (aged 60 years or more) against consideration up to Rupees Twenty Five Thousand per month per member provided consideration is inclusive of charges for boarding, lodging and maintenance.

It further exempts GST on the administrative fee collected by National Pension System Trust.

Services provided by an unincorporated body or a non-profit entity registered under any law for the time being in force, engaged in activities relating to the welfare of industrial or agricultural labour or farmer; or for the promotion of trade, commerce, industry, agriculture, art, science, literature, culture, sports, education, social welfare, charitable activities and protection of environment, to own members against consideration in the form of  membership fee up to an amount of one thousand rupees per member per year are also outside the tax net.

Also, Reinsurance Services provided to specified Insurance Schemes such as Pradhan Mantri Rashtriya Swasthya Suraksha  Mission (PMRSSM) (Ayushman Bharat), funded by Government are not subject to GST anymore.

Certain Government services are also outside the ambit of GST. They are, (i) services provided by Government to ERCC by way of assigning the right to collect the royalty, DMFT etc. from the mining leaseholders. (ii) the guarantees are given by Central/State Government/UT administration to their undertakings/PSUs.

The  Government also exempted GST on import of services by Foreign Diplomatic Missions/ UN & other International Organizations based on reciprocity, services supplied by an establishment of a person in India to any establishment of that person outside India, which are treated as establishments of distinct persons in accordance with Explanation I in section 8 of the IGST Act provided the place of supply is outside the taxable territory of India in accordance with section 13 of IGST Act etc.

Subscribe Taxscan Premium to view the Judgment
taxscan-loader