ICAI Releases Updated Handbook on Exempted Supplies under GST

The Institute of Chartered Accountants of India ( ICAI ) has released the Fourth Edition of its flagship publication, the "Handbook on Exempted Supplies under GST." Developed by the GST & Indirect Taxes Committee, this updated edition includes all legislative changes and amendments made up to 15th April 2025.

Purpose and Importance

Under the Goods and Services Tax (GST) regime, certain goods and services are exempt from tax to support key sectors such as healthcare, education, agriculture, and public welfare. This handbook serves as a practical and legal guide for understanding these exemptions, aiming to make GST compliance simpler, clearer, and more accurate.

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What’s Inside the Handbook?

The handbook is organized into well-defined chapters, each aimed at explaining specific aspects of GST exemptions:

1. Background of Exemptions

• Introduction to exemption concepts
• Historical context from pre-GST laws
• Economic impact and rationale behind exemptions

2. Aspects of Exemption

• Legal powers of the Government to grant exemptions
• Zero-rated vs. exempt supplies
• Input tax credit (ITC) treatment for exempted goods and services
• Composite and mixed supplies

3. Principles of Exemption

• How exemption rules should be interpreted
• Whether exemptions are mandatory or optional
• Implications of retrospective exemptions

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4. Procedural Aspects

• GST registration rules for suppliers of exempt goods/services
• Invoice formats (bill of supply vs. tax invoice)
• Record keeping, E-way bills, and non-compliance consequences

5. Detailed Analysis of Exemptions

This is the heart of the book, offering detailed entries, examples, and notes on:

• Government-related supplies
• Education and health services
• Agricultural and transport services
• Religious and charitable institutions
• Housing societies and club associations
• Financial and insurance services
• Services under various notifications

6. Annexures

Includes updated and categorized lists of:

• Exempted goods
• Exempted services
• Activities listed under Schedule III (neither supply of goods nor services)

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New in This Edition

• Updates till April 2025: Incorporates latest GST Council decisions, case laws, and clarifications.
• Simplified language: Designed to be accessible to both professionals and learners.
• Cross-references: Easy navigation between related sections and notifications.

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This book is helpful for

• Chartered Accountants & Tax Consultants: For client advisory and compliance.
• Businesses & Startups: To assess exemption eligibility and reduce tax burden.
• Government Departments: For accurate implementation of GST on public welfare services.
• Students and Educators: As a reference book for GST education and examinations.

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Words from ICAI Leadership

ICAI President CA. Charanjot Singh Nanda and Vice-President CA. Prasanna Kumar D commended the committee’s efforts in releasing this important publication. They emphasized its role in promoting clarity, consistency, and compliance in the GST system. Special appreciation was extended to contributors including CA. Rajendra Kumar P, CA. Umesh Sharma, and the editorial team.

To Read the full text of the Order CLICK HERE

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