Exemption 1

Chapter 5A “Vidhya Peeth” Exemptions & RCM
Conceptual Learning! Study! Revise!! Krack!!!
EXEMPTIONS &
REVERSE CHARGE MECHANISM
EXEMPTION FROM GST ON GOODS & SERVICES
Exemption on Essential Goods Exemption on Essential Services

(Exemption from CGST + SGST as well as IGST) (Exemption from CGST + SGST as well as IGST)
Unbranded Atta / Maida / Eggs, Exemption from CGST +

Exemption ONLY from IGST
Besan, Live Fish, SGST as well as IGST
Unpacked Food Grains, Indian National Flag, A Number of Cases 8 Special Cases
Fresh Milk / Curd / Lassi, Plastic Bangles, etc. NN 12/2017 – CT (Rate) read NN 9/2017 – IT (Rate)
with NN 9/2017 – IT (Rate)
(Refer Next Pages) (Refer Next Pages)
Note: 8 Special Cases, where exemption is ONLY from IGST are the
cases where the supply is always Inter-State Supply and thus,
exemption from IGST only will be required.
Vishal Jain Page 5A.1 Praveen Jain

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(1) SERVICE BY WAY OF ACCESS TO ROAD / BRIDGES
Toll Charges Other Charges OR Toll Collection Charges
Collection Charges or Service Charges paid to any Toll Collecting

Access to a Road or a Bridge (including access to National Agency
Highway or State Highway) on payment of Toll Charges OR
Any Other Charges
Exempt Taxable

Notes:
Clarification in respect of Exemption to Overloading Charges at Toll Plaza – CBIC Circular 164/20/2021 – CGST
Issue Clarification regarding applicability of GST on overloading charges at toll plaza.
Clarification  Entry 23 of EN 12/2017-CT (Rate), exempts service by way of access to a road or a bridge on payment of toll charges.
 Ministry of Road Transport & Highways allowed overloaded vehicles to ply on the national highways after payment of
fees with multiplying factor of 2/4/6/8/10 times the base rate of toll. Therefore, it essence overloading fees are effectively
higher toll charges.
 As recommended by the GST Council, it is clarified that overloading charges at toll plazas would get the same treatment
as given to toll charges.
Example 1: Toll Charges OR Overloading Charges at Toll Plazas Example 2: Annuity OR Collection Charges
Particulars GST Particulars GST
Toll Charges collected by L&T for Toll Gate on National Annuity collected by L&T for Toll Gate on National
Highway / State Highway Highway / State Highway
Overloading Charges at Toll Plazas for Overloaded Collection charges paid by L&T for Toll Collection to ABC
Vehicles & Co. Collection Agency

(2) ELECTRICITY TRANSMISSION OR DISTRIBUTION
BY Government Authority or Transmission Licensee BY Shopping Mall
Transmission or Construction, Erection, (a) Application fee for releasing connection of

distribution of Commissioning or Installation electricity; Charges collected
Electricity by an of infrastructure for extending (b) Rental Charges against metering equipment; by a Developer for
Electricity electricity distribution (c) Testing fee for meters / transformers, capacitors; distribution of
Transmission or network upto the tube well of (d) Labour charges from customers for shifting of electricity within a
Distribution the farmer or agriculturalist meters or shifting of service lines; Shopping Mall
Utility for agricultural use (e) Charges for duplicate bill;
Exempt Exempt Taxable Taxable

Notes:
Clarification regarding GST on Certain Services – CBIC Circular 34/08/2018 – CGST
Issue Whether the activities carried by DISCOMS (Distribution Companies) against recovery of charges from consumers under State
Electricity Act are exempt from GST?
Clarification  Service by way of transmission or distribution of electricity by an electricity transmission or distribution utility is exempt
from GST under EN 12/2017-CT (Rate).
 The other services such as,
(a) Application fee for releasing connection of electricity;
(b) Rental Charges against metering equipment;
(c) Testing fee for meters / transformers, capacitors etc.;
(d) Labour charges from customers for shifting of meters or shifting of service lines;
(e) Charges for duplicate bill;
provided by DISCOMS to consumer are taxable.
Example 1: Electricity Transmission / Distribution Charges Example 2: Service BY Governmental Authority/Transmission License
BY Governmental Authority / Transmission License For Electricity Transmission / Distribution
BY Others (For example, Lulu Mall collecting Rental For Application Fees for EB Connection, Rental Charges
Amount say Rs.1,00,000 along with Electricity Charges say for Meter, Testing Fees for Meters, Charges for Shift of
Rs.10,000 as part of Composite Supply) Meter, Charges for Duplicate Bill, etc.

(3) RESERVE BANK OF INDIA SERVICES
BY Reserve Bank of India TO Reserve Bank of India
Services BY person outside India TO RBI Services BY person in India TO RBI

Any Services BY RBI
(Import of Service) (Domestic Service)
Taxable
Service BY Members of
Service BY
Overseeing Committee
Any Services Any Other
constituted by Reserve Bank of
Person
India
Taxable Taxable Taxable

(Reverse (Reverse (Forward
Charge) Charge) Charge)
Example 1: Services BY Supplier in USA TO RBI Example 2: Services BY Supplier in India TO RBI
Services by Members of Overseeing Committee (RCM)
Any Services (Import of Services) (RCM)
Services by Any Other Person (FCM)

(4) BANKING & FINANCIAL SERVICES
(I) PRIMARY BANKING & FINANCIAL SERVICES BY BANKING COMPANIES & OTHER COMPANIES
Extending Loans, Advances and Deposits Money Changing Services
Services by way of extending Deposits, Loans or Advances in so Services by way of inter se Sale or Purchase of Foreign Currency
far as the Consideration is represented by way of Interest or amongst Banks or Authorised Dealers of Foreign Exchange or
Discount amongst Banks and such Dealers
Interest in Credit Card Bank 1 & Bank 2

Bank & Consumer
Interest or Discount Services, Processing Fees, AD 1 & AD 2
Authorized Dealer & Consumer
Documentation Charges, etc. Bank & Authorized Dealer
Exempt Taxable Exempt Taxable

(II) OTHER BANKING & FINANCIAL SERVICES BY BANKING COMPANIES
Services BY an Acquiring Bank TO any

person in relation to settlement of an Services provided BY a Banking Company
amount upto Rs.2,000 in a single TO Basic Saving Bank Deposit (BSBD)
Any Other Case
transaction transacted through credit card, Account Holders under Pradhan Mantri Jan
debit card, charge card or other payment Dhan Yojana (PMJDY)
card
Exempt Exempt Taxable
Example 1: Banking Services Example 2: Money Changing Services

Interest on Loans / Deposits, etc. Money Changing between 2 Banks / 2 Authorised Dealers
Interest on Credit Card Services Money Changing between Bank and Authorised Dealer
Processing Fees, Documentation Charges, etc. Money Changing between Bank / AD and Other Persons
Example 3: Bank Charges for Payment through Card Example 4: Bank Charges for Payment through Card
Bank Charges – Rs.50 for Wallet Purchase for Rs.1,800 Bank Charges – Rs.50 for Wallet Purchase for Rs.3,800
(including GST) by making payment through Credit Card (including GST) by making payment through Credit Card

(III) OTHER BANKING & FINANCIAL SERVICES TO BANKING COMPANIES
Services BY
Business
Services Services
Facilitator / Services BY Business
BY Recovery Agent (RA) BY Direct Selling Agent
Business Facilitator / Business
TO Banking Company or a (DSA)
Correspondent Correspondent TO a
Financial Institution or a TO Banking Company or a Any Other Services
TO a Banking Banking Company with
Non-Banking Financial Non-Banking Financial
Company with respect to its accounts in a
Company located in Company located in
respect to its Urban Area
Taxable Territory Taxable Territory
accounts in a
Rural Area
Exempt Taxable Taxable Taxable Taxable
BY Indl. BY Non-
BY BF BY BC BY RA BY RA
DSA Indl. DSA
TO Banks TO Bank TO Banks TO Others
TO Banks TO Banks
Reverse Forward Reverse Forward Reverse Forward

Charge Charge Charge Charge Charge Charge
Example 1: Services by Recovery Agent (RA) Example 2: Services by Direct Selling Agent (DSA)
Services by RA to Banking Sector (RCM) Services by DSA (Mr. A) to Bank (RCM)
Services by RA to Other Company (FCM) Services by DSA (A Ltd. / ABC & Co.) to Bank (FCM)

(IV) OTHER FINANCIAL SERVICES
Services Services BY an Services

supplied BY Intermediary of provided BY
CG, SG or UT Financial Services ** any person as
TO their located in a multi an Services provided BY
Undertakings or services SEZ with Intermediary any person as an
PSUs by way of International TO Business Intermediary TO
Services BY RBI guaranteeing the Financial Services Facilitator / Business Facilitator /
loans taken by Centre (IFSC) Business Business Any Other Service
Services BY SEBI such status TO a Corresponde Correspondent with
undertakings or customer located nt with respect to ONLY
PSUs from the outside India for respect to Banking Company in
Banking international ONLY Urban Area
Companies and financial services in Banking
Financial currencies other Company in
Institutions than INR. Rural Area
Exempt Exempt Exempt Exempt Taxable Taxable
BY Agent BY Agent SLS BY

of BC of BF Lender TO Others
TO BC TO BF Borrower
RCM FCM RCM FCM

** Note: Intermediary of Financial Services in IFSC is a person,
(a) who is permitted or recognised as such by the Government of India or any Regulator appointed for regulation of IFSC; OR
(b) who is treated as a person resident outside India under the FEMA (International Financial Services Centre) Regulations 2015; OR
(c) who is registered under the IRDA (International Financial Service Centre) Guidelines, 2015 as IFSC Insurance Office; OR
(d) who is permitted as such by SEBI under the SEBI (International Financial Services Centres) Guidelines, 2015

Clarification regarding Value for computing GST on services of Business Facilitator (BF) or Business Correspondent (BC) to Banking
Company – CBIC Circular 86/05/2019 – CGST
Issue What is the value to be adopted for the purpose of computing GST on services provided by BF / BC to a banking company?
Clarification As per RBI’s Circular and subsequent instructions on the issue (referred to as ‘guidelines’ hereinafter), banks may pay
reasonable commission / fee to the BC, the rate and quantum of which may be reviewed periodically.
 The agreement of banks with the BC specifically prohibits them from directly charging any fee to the customers for
services rendered by them on behalf of the bank.
 On the other hand, banks (and not BCs) are permitted to collect reasonable service charges from the customers for such
service in a transparent manner. The arrangements of banks with the BCs specify the requirement that the transactions are
accounted for and reflected in the bank's books by end of the day or the next working day, and all agreements/contracts
with the customer shall clearly specify that bank is responsible to customer for acts of omission and commission of BF/BC.
 Hence, banking company is the service provider in the BF model or the BC model operated by a banking company as per
RBI guidelines. The banking company is liable to pay GST on the entire value of service charge or fee charged to customers
whether or not received via BF or BC.
Clarification regarding Taxability of Supply of Securities under Securities Lending Scheme, 1997 – CBIC Circular 119/38/2019 – CGST
Background  SEBI facilitates lending and borrowing of securities. The lender temporarily lends the securities held by him to a borrower
and charges lending fee for the same from the borrower. The borrower of securities can further sell or buy these securities
and is required to return the lended securities after stipulated period of time. The transaction takes place through an
electronic screen-based order matching mechanism provided by the recognized stock exchange in India, which charges a
fee for the same. There is anonymity between the lender and borrower since there is no direct agreement between them.
Levy of GST  Securities are NOT covered in the definition of goods under Section 2(52) and services under Section 2(102) of the CGST
Act. Thus, transaction in securities which involves disposal of securities is NOT a supply in GST and hence not taxable.
 The activity of lending of securities is NOT a transaction in securities as it does not involve disposal of securities. The
lending fee charged from borrowers of securities has the character of consideration and this activity is taxable in GST. The
activities of intermediaries facilitating lending and borrowing of securities for commission/fee are also taxable separately.
Nature of  The borrower of securities shall be liable to discharge GST under Reverse Charge Mechanism (RCM).
Supply &  The nature of GST to be paid shall be IGST under RCM.
Person liable
to pay GST

(5) INSURANCE SERVICES
(I) SERVICES BY INSURANCE COMPANIES
Specified General Insurance Services Specified Life Insurance Services Other Insurance Services
Services of General Insurance Business Services of Life Insurance Business (including re-insurance) Any Other Life Insurance
(including re-insurance) under following under following schemes: Services BY Life Insurance
schemes: (a) Janashree Bima Yojana Company
(a) Hut Insurance Scheme (b) Aam Aadmi Bima Yojana OR
(b) Cattle Insurance under Swarnajaynti Gram
(c) Life Micro-Insurance product having maximum amount of Any Other General Insurance
Swarozgar Yojna
cover of Rs.2,00,000 Services BY General Insurance
(c) Scheme for Insurance of Tribals
(d) Janata Personal Accident Policy and (d) Varishtha Pension Bima Yojana Company
Gramin Accident Policy (e) Pradhan Mantri Jeevan Jyoti Bima Yojna
(e) Group Personal Accident Policy for Self- (f) Pradhan Mantri Jan Dhan Yojna
Employed Women (g) Pradhan Mantri Vaya Vandan Yojna
(f) Agricultural Pumpset and Failed Well
Insurance Services by way of Collection of Contribution under Atal Pension
(g) Premia collected on Export Credit Yojna OR under any Pension Scheme of the State Government
Insurance
Services of Life Insurance Business provided by way of annuity
(h) Restructured Weather Based Crop
under the National Pension System Services
Insurance Scheme (RWCIS)
(i) Jan Arogya Bima Policy Services of Life Insurance Business BY the Army, Naval and Air provided TO
(j) Pradhan Mantri Fasal BimaYojana (PMFBY) Force Group Insurance Funds TO their members under the Group Government
(k) Pilot Scheme on Seed Crop Insurance
Insurance Schemes of the Central Government under Any
(l) Central Sector Scheme on Cattle Insurance Insurance
(m) Universal Health Insurance Scheme Services of Life Insurance Business BY the Naval Group Insurance Any Other
Scheme
(n) Rashtriya Swasthya Bima Yojana Fund TO the personnel of Coast Guard under the Group Case
(including re-
(o) Coconut Palm Insurance Scheme Insurance Schemes of the Central Government insurance) for
(p) Pradhan Mantri Suraksha Bima Yojna
Services of Life Insurance Business BY the Central Armed Police which Total
(q) Niramaya’ Health Insurance Scheme
(r) Bangla Shasya Bima Forces (under Ministry of Home Affairs) Group Insurance Funds Premium is paid
TO their members under the Group Insurance Schemes of CAPF by Government
Exempt Exempt Exempt Taxable

(II) SERVICES TO INSURANCE COMPANIES
Services BY Business Facilitator / Business Correspondent TO a

Any Other Services
Insurance Company with respect to its accounts in a Rural Area
Exempt Taxable
Services
Services
BY Insurance Agent (having
BY Any Other Person (such as
License under Section 42 of
Actuary, Surveyor, etc.)
Insurance Act)
TO Insurance Company
TO Insurance Company
Reverse Charge Forward Charge

Special Note: Services provided BY any person as an Intermediary TO Business Facilitator / Business Correspondent with respect to Insurance
Company in Rural Area or in Urban Area is Taxable.
 If the services are provided BY Agent of Business Correspondent TO Business Correspondent, it is taxable under RCM.
 If the services are provided BY Agent of Business Facilitator TO Business Facilitator, it is taxable under FCM.
Note: “Business Facilitator or Business Correspondent” means an intermediary appointed under the Business Facilitator Model or the Business
Correspondent Model by a Banking Company or an Insurance Company under the guidelines issued by the Reserve Bank of India;
Agent --------------------> Business Facilitator --------------------> Bank Agent -----------------> Business Facilitator -----------------> Insurance
FCM RCM FCM FCM
`
Agent -------------------> Business Correspondent -------------------> Bank Agent ----------------> Business Correspondent ----------------> Insurance
RCM FCM RCM FCM

Example 1: Banking Company in Rural Area Example 2: Insurance Company in Rural Area
Service by BF to such Banking Co. in Rural Area Service by BF to such Insurance Co. in Rural Area
Service by BC to such Banking Co. in Rural Area Service by BC to such Insurance Co. in Rural Area
Service by Intermediary to such above BF Service by Intermediary to such above BF (FCM)
Service by Intermediary to such above BC Service by Intermediary to such above BC (RCM)
Example 3: Banking Company in Urban Area Example 4: Insurance Company in Urban Area
Service by BF to such Banking Co. in Urban Area (RCM) Service by BF to such Insurance Co. in Urban Area (FCM)
Service by BC to such Banking Co. in Urban Area (FCM) Service by BC to such Insurance Co. in Urban Area (FCM)
Service by Intermediary to such above BF (FCM) Service by Intermediary to such above BF (FCM)
Service by Intermediary to such above BC (RCM) Service by Intermediary to such above BC (RCM)
Example 5: Non-Exempted Insurance Scheme BY Insurance Company Example 6: Services TO Insurance Company
Total Premium paid by Govt. Services by Insurance Agent to Insurance Co. (RCM)
Total Premium paid by other than Govt. Services by Actuary, Surveyor, etc to Insurance Co. (FCM)

(6) ENTERTAINMENT SERVICES
Admission to a
Museum, National Park, Services by way of right to admission to-
Wildlife Sanctuary, Tiger (a) Circus, Dance, or Theatrical Performance
Reserve or Zoo including Drama or Ballet
Services by an Artist by way of a performance in
(b) Award Function, Concert, Pageant, Musical
Folk or Classical Art Forms Admission to a Protected Performance
(NOT Western Art Forms) of Monument so declared (c) Sporting Event other than a Recognised
Music / Dance / Theatre under Ancient Monuments Sporting Event;
and Archaeological Sites (d) Recognised Sporting Event,
and Remains Act, 1958 OR (e) Planetarium
any of the State Acts
Consideration is more Consideration is less than Exempt

than to Rs.1.50 lakhs or equal to Rs.1.50 lakhs (irrespective of Entry Fees)
OR AND Consideration is less than Consideration is more
Artist is Acting as Brand Artist is NOT Acting as or equal to Rs.500 than Rs.500
Ambassador Brand Ambassador
Taxable Exempt Exempt Taxable

Example 1: Thala Ajith performing Bharatnatiyam Dance Example 2: Prabhu Deva performing Western Dance
Artist Fees is Rs.1 lakh promoting “Pothys” Brand Artist Fees is Rs.1 lakh promoting “Pothys” Brand
Artist Fees is Rs.3 lakhs performing at “PSG College” Artist Fees is Rs.3 lakhs performing at “PSG College”
Artist Fees is Rs.1 lakh performing at “ICAI” Artist Fees is Rs.1 lakh performing at “ICAI”
Example 3: Entry to Museum, Zoo, Protected Monument, etc. Example 4: Entry to Circus, Dance, Sporting Event, Planetarium, etc.
Entry Fees is Rs.1,000 Entry Fees is Rs.1,000
Entry Fees is Rs.500 Entry Fees is Rs.500

(7) SPORTS SERVICES
(I) PRIMARY SPORTS SERVICES
Sponsorship of Events organized BY Notified Sporting Body Services provided TO Recognized Sporting Body
Services by way of sponsorship of sporting events organised,- BY Another BY an individual for participation in a
(a) by a National Sports Federation, or its Affiliated Federations, Recognized sporting event organized by a Recognized
where the Participating Teams or Individuals represent any Sporting Body Sporting Body acting as
District, State, Zone or Country;
(b) by Association of Indian Universities, Inter-University Sports Exempt Selectors,
Player, Referee,
Board, School Games Federation of India, All India Sports Commentators,
Umpire, Coach or
Council for the Deaf, Paralympic Committee of India or Curators or
Team Manager
Special Olympics Bharat; Technical Experts
(c) by Central Civil Services Cultural and Sports Board;
(d) as part of National Games, by Indian Olympic Association; or Exempt Taxable
(e) under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA)
Scheme;
Exempt
Example 1: Recognized Sporting Body to Recognized Sporting Body Example 2: Player to Recognized Sporting Body & to Others
Services provided by BCCI to ECB Services provided by Virak Kohli to BCCI (Match Fees)
Services provided by BCCI to TNCB Services provided by Virak Kohli to Sun Silk (Brand Fees)
Example 3: Player, Referee, Umpire, Coach or Team Manager to RSB Example 4: Others to RSB
Services provided by Ravi Shastri (Coach) to BCCI Services provided by Curator to BCCI
Services provided by Billy Bowden (Umpire) to BCCI Services provided by Physiotherapist to BCCI (Health Care)

(II) OTHER SPORTS SERVICES
Sports Services BY Unincorporate Club / BY Section 12AA or

Others Sports Related Services
Section 12AB Entity
Service BY an Unincorporated
Services by way of right to admission
Body / Registered Non-Profit
to
Entity, engaged in promotion Services by way of training
(a) any Sporting Event other than a Any Other Services
of Sports, TO its own members or coaching in Sports
Recognised Sporting Event;
against consideration in the
(b) Recognised Sporting Event,
form of Membership Fee
Mem. Fees Mem. Fees > BY Chari. Consideration is Consideration Taxable

BY Other
upto Rs.1,000 Rs.1,000 / Yr. Entities u/s less than or is more than
Entity
/ Yr. / Mem. / Mem. 12AA / 12AB equal to Rs.500 Rs.500
Exempt Taxable Exempt Taxable Exempt Taxable
Example 1: Services by Unincorporated Body to its Members for Example 2: Services by way of Admission to Sporting Event
Promotion of Sports (Recognized Event or Unrecognized Event)
Membership Fees is Rs.5,000 / Year / Member Entry Fees is Rs.1,000
Membership Fees is Rs.1,000 / Year / Member Entry Fees is Rs.500
Example 3: Lalit Kalashetra Academy providing training in Painting Example 4: Dravid Academy providing training in playing Cricket
Lalit Kalashetra Academy is a Proprietorship Concern Dravid Academy is registered u/s 12AA/12AB
Lalit Kalashetra Academy is a Partnership Firm Dravid Academy is not registered u/s 12AA/12AB

(III) OTHER SPORTS SERVICES RELATED TO FOOTBALL EVENTS IN INDIA
FIFA U-17 Women’s World Cup 2020 in India Asian Football Confederation Women’s Asia Cup 2022 in India
Services provided BY and TO Services provided BY and TO Asian

Fédération Internationale de Football Football Confederation (AFC) and
Association (FIFA) and its subsidiaries its subsidiaries directly or indirectly
directly or indirectly related to any of Services by way of related to any of the events under
the events under FIFA U-17 Women's right to admission AFC Women's Asia Cup 2022 to be Services by way of right
World Cup 2020 to be hosted in India to the events hosted in India. to admission to the
whenever rescheduled. organised under events organised under
Provided that Director (Sports), FIFA U-17 Women's Provided that Director (Sports), AFC Women's Asia Cup
Ministry of Youth Affairs and Sports World Cup 2020, Ministry of Youth Affairs and 2022.
certifies that services are directly or whenever reschedule. Sports certifies that services are
indirectly related to any of the events directly or indirectly related to any
under FIFA U-17 Women's World Cup of the events under AFC Women's
2020. Asia Cup 2022.
Exempt Exempt Exempt Exempt

(8) SPONSORSHIP SERVICES
Sponsorship of Events organized BY Notified Sporting Body Any Other Sponsorship Services
Services by way of Sponsorship of sporting events organised,

(a) by a National Sports Federation, or its Affiliated Federations,
where the Participating Teams or Individuals represent any
District, State, Zone or Country;
(b) by Association of Indian Universities, Inter-University Sports
Board, School Games Federation of India, All India Sports
Any Other Case of Sponsorship Service
Council for the Deaf, Paralympic Committee of India or
Special Olympics Bharat;
(c) by Central Civil Services Cultural and Sports Board;
(d) as part of National Games, by Indian Olympic Association; or
(e) under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA)
Scheme;
Exempt Taxable
BY Any Person BY Any Person

TO Body Corporate / TO other than Body Corporate
Partnership Firm / LLP / Partnership Firm / LLP

Example 1: Sponsorship Services for Sporting Event Example 2: Sponsorship Services for Any Event (including Sports)
Event organised by Notified Sporting Body Rajinikant sponsored an event orgainsed by ITC Co. (FCM)
Event organised by Other Sporting Body Rajinikant Ltd. provided sponsorship sr. to ITC Ltd. (RCM)

(9) TEMPORARY TRANSFER OF INTELLECTUAL PROPERTY RIGHT
Temporary Transfer of
Temporary Transfer of Copyright
Patents, Trademarks, etc.
Temporary Transfer of
IPR other than Copyright
Temporary Transfer of Copyright
such as Patents,
Trademarks, etc.
Taxable Taxable
Relating to Original Literary

Works
Relating to Original
BY Author
Dramatic, Musical or
TO Publisher located in Relating to Original
Artistic Works Relating to other
Taxable Territory Literary Works
BY Music Composer, than Original
[(i) Author takes Reg. + Files BY Author
Photographer, Artist or Dramatic, Musical
Declaration in Ann. I before TO Publisher located
the like or Artistic Works
commencement of FY (not in Taxable Territory
TO Music Company, BY Any Person
withdraw such option for 1
Producer or the like TO Any Person
Year) [Other Cases]
located in Taxable
(ii) Author files Declaration
Territory
in Ann. II on invoice issued
by him in GST INV-1]
Forward Charge Reverse Charge Reverse Charge Forward Charge

Example 1: Temporary Transfer of Patent, Trademark, etc. Example 2: Temporary Transfer of Copyright
Temporary Transfer of Patent, Trademark, etc. Temporary Transfer of Copyright
(FCM) (Refer Below)
Example 3: Temporary Transfer of Copyright – Author Example 4: Temporary Transfer of Copyright – Author
Temporary Transfer of Copyright by Author to Temporary Transfer of Copyright by Author to
Publisher (opting for FCM and satisfying Publisher (NOT opting for FCM)
(FCM) (RCM)
conditions for the same)
Example 5: Temporary Transfer of Copyright – Others Example 6: Temporary Transfer of Copyright – Others
Temporary Transfer of Copyright by AR Rehman Temporary Transfer of Copyright by Sony Music
to Sony Music (RCM) to Jio Sawan Music (FCM)

(10) RIGHT TO USE RADIO-FREQUENCY SPECTRUM
Prior to 01st April 2016 After 01st April 2016
Services BY Government or Local Authority by way of allowing a Licence Fee or Spectrum User Charges for using Radiofrequency
Business Entity to operate as a Telecom Service Provider or use Spectrum after 1st April 2016
Radiofrequency Spectrum during the period before 1st April 2016
on payment of Licence Fee or Spectrum User Charges, as the case Taxable
may be;
BY Government / Local
BY one Business Entity
Exempt Authority
TO another Business Entity
TO Business Entity
Example 1: Spectrum Fees for upto FY 2015-16 Example 2: Spectrum Fees from FY 2016-17 onwards
Spectrum Fees for FY 2015-16 Spectrum Fees for FY 2018-19
Example 3: Spectrum Fees by Government to Business Entity Example 4: Spectrum Fees by Business Entity to Business Entity
Spectrum Fees charged by Government from JIO (RCM) Spectrum Fees charged by JIO from Airtel (FCM)

(11) INCUBATOR & INCUBATEE SERVICES
Services provided BY Incubator (TBI / STEP / BI) Services provided BY Incubatee
Services provided BY Services provided BY

(a) Technology Business Incubator (TBI) / an Incubatee (i.e. Entrepreneur located within
Science and Technology Entrepreneurship Service the premises TBI / STEP and Agreement with
Park (STEP) recognized by the National provided BY TBI / STEP to develop and produce hi-tech and
Science and Technology Entrepreneurship Any Other innovative products) up to a Total Turnover of Service
Development Board (NSTEDB), Incubator Rs.50 lakhs in a Financial Year subject to the provided BY
Department of Science and Technology, (for example following conditions, namely:- Incubatee in
Government of India Private (a) Total Turnover had not exceeded Rs.50 Any Other
OR Incubator lakhs during the Preceding Financial Year; Case
(b) Bio-Incubators (BI) recognized by the such as AND
Biotechnology Industry Research TATA) (b) 3 years has not been elapsed from the date
Assistance Council, under Department of of entering into an Agreement as an
Biotechnology, Government of India Incubatee

Example: A start-up company within the premises of TBI / STEP gives the following information:
No. of Years Previous Yr. Turnover Current Yr. Turnover Eligible for EN Exempt Portion & Taxable Portion
1 0 Rs.60 lakhs No GST on Rs.50 lakhs and Pay GST on Rs.10 lakhs
2 Rs.60 lakhs Rs.70 lakhs Pay GST on Rs.70 lakhs
3 Rs.70 lakhs Rs.30 lakhs Pay GST on Rs.30 lakhs
4 Rs.30 lakhs Rs.10 lakhs Pay GST on Rs.10 lakhs (Refer Note)
Note: The start-up company in the 4 year of agreement can apply for cancellation of registration under Section 29 as it is no longer liable for
th
registration (Aggregate Turnover is less than Rs.20 lakhs) and thereby stop paying GST.

(12) UNINCOPORATED BODY OR NON-PROFIT ENTITY
Service BY an Unincorporated Body / Service BY an Unincorporated Body /

Registered Non-Profit Entity TO its own Registered Non-Profit Entity, engaged in
members by way of reimbursement of (a) activities relating to the welfare of
charges or share of contribution: Industrial or Agricultural Labour or
(a) as a Trade Union (No limit of amount Farmers;
for exemption) (b) promotion of
(b) for the provision of carrying out any  Trade, Commerce, Industry,
activity which is exempt from levy of  Agriculture,
Any Other Case
GST (No limit of amount for  Art, Science, Literature, Culture,
exemption) Sports, Education,
(c) up to an amount of Rs.7,500 / Month /  Social Welfare, Charitable Activities
Member for sourcing of Goods / and Protection of Environment,
Services from a Third Person for the TO its own members against
Common Use of its Members in a consideration in the form of Membership
Housing Society / Residential Fee upto an amount of Rs.1,000 / Year /
Complex Member
Example 1: Charges collected by Trade Union from its Members Example 2: Charges collected by RWA from its Members
Case 1: Charges – Rs.6,000 / Month / Member Case 1: Charges – Rs.6,000 / Month / Member
Case 2: Charges – Rs.10,000 / Month / Member Case 2: Charges – Rs.10,000 / Month / Member
Example 3: Membership Fees collected by Unincorporated Body for Welfare of Agricultural Farmers from its Members
Case 1: Membership Fees – Rs.1,000 / Year / Member Case 2: Membership Fees – Rs.2,000 / Year / Member

Clarifications related to GST on Monthly Subscription / Contribution charged by RWA from its Members – CBIC Circular 109/28/2019 –
CGST
Issue 1 Are the maintenance charges paid by residents to the Resident Welfare Association (RWA) in a housing society exempt from
GST and if yes, is there an upper limit on the amount of such charges for the exemption to be available?
Clarification  Supply of service by RWA (unincorporated body or a non- profit entity registered under any law) to its own members by
way of reimbursement of charges or share of contribution upto an amount of Rs.7,500 per month per member for providing
services and goods for the common use of its members in a housing society or a residential complex are exempt from GST.
Issue 2 A RWA has aggregate turnover of Rs.20 lakh or less in a financial year. Is it required to take registration and pay GST on
maintenance charges if the amount of such charges is more than Rs.7,500 per month per member?
Clarification  If aggregate turnover of an RWA does not exceed Rs.20 lakhs in a financial year, it shall not be required to take
registration and pay GST EVEN if the amount of maintenance charges exceeds Rs.7,500 per month per member.
Aggregate Turnover of RWA Maintenance Charges by RWA Exempt
More than Rs.20 lakhs More than Rs7,500 No
More than Rs.20 lakhs Upto Rs.7,500 Yes
Upto Rs.20 lakhs Upto Rs.7,500 Yes
Upto Rs.20 lakhs More than Rs7,500 Yes
Issue 3 Is the RWA entitled to take ITC of GST paid on input and services used by it for making supplies to its members and use such
ITC for discharge of GST liability on such supplies where the amount charged for such supplies is more than Rs.7,500 per
month per member?
Clarification  RWAs are entitled to take ITC of GST paid by them on Capital Goods (generators, water pumps, lawn furniture etc.),
Inputs (taps, pipes, other sanitary / hardware fillings etc.) and Input Services (repair and maintenance services, etc.).
Issue 4 Where a person owns 2 or more flats in the housing society or residential complex, whether the ceiling of Rs.7,500 per month
per member on the maintenance for the exemption to be available shall be applied per residential apartment or per person?
Clarification  As per general business sense, a person who owns 2 or more residential apartments in a housing society or a residential
complex shall normally be a member of the RWA for each residential apartment owned by him separately. The ceiling of

Rs.7,500 per month per member shall be applied separately for each residential apartment owned by him.
 For example, if a person owns 2 residential apartments in a residential complex and pays Rs.15,000 per month as
maintenance charges towards maintenance of both apartments to the RWA, the exemption from GST (Rs.7,500 per month
in respect of each residential apartment) shall be available to each apartment.
Issue 5 How should the RWA calculate GST payable where the maintenance charges exceed Rs.7,500 per month per member? Is the
GST payable only on the amount exceeding Rs.7,500 or on the entire amount of maintenance charges?
Clarification  The exemption from GST on maintenance charges charged by a RWA from residents is available ONLY if such charges are
upto Rs.7,500 per month per member. In case the charges exceed Rs.7,500 per month per member, the entire amount is
taxable.
 For example, if the maintenance charges are Rs.9,000 per month per member, GST @ 18% shall be payable on the entire
amount of Rs.9,000 and NOT on Rs.1,500 (Rs.9,000 - Rs.7,500).
Example 1: GST by RWA – Various Scenarios

Aggregate Turnover of RWA Maintenance Charges by RWA GST
1. Upto Rs.20 lakhs (Assuming NOT Registered) Upto Rs.7,500
2. Upto Rs.20 lakhs (Assuming NOT Registered) More than Rs7,500
3. More than Rs.20 lakhs Upto Rs.7,500
4. More than Rs.20 lakhs More than Rs7,500
5. More than Rs.20 lakhs Upto Rs.7,500 from Few Members & More than Rs7,500 from Few Members
Example 2: Charges by RWA from Single Member having 2 Flats Example 3: Charges by RWA from Single Member having 2 Flats
Case 1: Charges for Flat 1 – Rs.6,000 / Month / Member Case 1: Charges for Flat 1 – Rs.7,500 / Month / Member
Case 2: Charges for Flat 2 – Rs.7,500 / Month / Member Case 2: Charges for Flat 2 – Rs.10,000 / Month / Member *
* Note: GST is payable on ENTIRE Rs.10,000 and NOT on Rs.2,500

(13) FOREIGN DIPLOMATIC MISSION SERVICES
BY Foreign Diplomatic Mission TO Foreign Diplomatic Mission
Import of Services BY FDM,

Consular Post OR Diplomatic Domestic Services BY
Any Services BY FDM in India Agents OR Career Consular Supplier in India TO FDM in
Officers posted therein subject India
to specified conditions
Exempt Exempt * Taxable **

* Note: Specified Conditions for exemption are as follows:
(a) Exemption is available based on Certificate is issued by the Protocol Division of the Ministry of External Affairs, based on the principle of
reciprocity and exemption is available till the Certificate is withdrawn.
(b) Exemption is available if service is imported for official purpose of the said FDM or CP; OR for personal use of the said Diplomatic Agent
or Career Consular Officer or members of his or her family.
** Note: FDM having UIN Registration can apply for Refund of GST on such Inward Supplies under Section 55 of CGST Act, 2017.

(14) IMPORT OF SERVICES & EXPORT AKIN SERVICES
(I) IMPORT OF SERVICES
Services BY a provider of service located in a Non-

Taxable Territory
(a) TO Government / Local Authority /
Import of services BY
Governmental Authority / Individual in relation Royalty and License Fee
United Nations OR
to any purpose other than Commerce / Industry / to the extent it is included
Specified International
any other Business / Profession (This exemption in Transaction Value in Any Other Service
Organisation
is not applicable to Online Information & Customs under Rule other than
for Official Use
Database Access & Retrieval Services i.e. OIDAR 10(1)(c) of Customs OIDARS BY
Services) Valuation (Determination Supplier in Non-
Import of services BY
(b) TO an entity registered under Section 12AA / of value of imported Taxable Territory
Foreign Diplomatic
Section 12AB of IT Act, 1961 for the purposes of Goods) Rules, 2007 and
Mission OR Consular
providing Charitable Activities (This exemption (This is due to the fact Freight Service BY
Post in India, OR
is not applicable to OIDAR Services) that as IGST within Foreign Shipping
Diplomatic Agents OR
(c) TO Educational Institution (Category B) by way Custom Duty would have Line
Career Consular Officers
of supply of online journals or periodicals been already paid on the
posted therein subject to
(d) TO a person located in a Non-Taxable Territory same)
specified conditions
(This exemption is not applicable to services of
transportation of goods by vessel in case of
import of goods)

(EXEMPTION IS ONLY FROM IGST) (Reverse Charge)
Note: Specified International Organization means International Organization declared by Central Government in pursuance of Section 3 of
United Nations (Privileges and Immunities) Act, 1947, to which the provisions of the Schedule to the said Act apply.

Example 1: Import of Normal Services (say Architect Sr.) from USA Example 2: Import of Normal Services (say Architect Sr.) from USA
Import by A & Co., a CA Firm (Business Entity) (RCM) Import by Mr. B., a Student (Non-Business Entity)
Example 3: OIDARS from India Example 4: OIDARS from USA

Case 1: Receipt of OIDARS by A & Co., a CA Firm Case 1: Import of OIDARS by A & Co., a CA Firm
(FCM) (RCM)
(Business Entity) (Business Entity)
Case 2: Receipt of OIDARS by Mr. B., a Student Case 2: Import of OIDARS by Mr. B., a Student
(FCM) (FCM)
(Non-Business Entity) (Non-Business Entity)
Example 5: Import of Freight Services by Importer at the time of Import of Goods in Foreign Shipping Line of USA
Import of goods is by Mr. A for Personal Use Import Duty Import of goods is by B Ltd. for Business Use Import Duty
(Baggage) and GST (Commercial Cargo) and GST
Import Duty (BCD + SWS + IGST) on CIF Value of Import Duty (BCD + SWS + IGST) on CIF Value of
Goods (Baggage) after General Free Allowance (Importer) Goods (Commercial Cargo) (Importer)
GST (IGST) on Freight Charges on Freight Value by GST (IGST) on Freight Charges on Freight Value by
Foreign Shipping Line Foreign Shipping Line (Refer Author’s Note) (RCM)
Author’s Note: Supreme Court in the case of MOHIT MINERALS PVT. LTD. & ORS. VS. UNION OF INDIA & ORS. has held that no tax is
leviable on the ocean freight for services provided by a person located in non-taxable territory by way of transportation of goods by a vessel
from a place outside India up to the customs station of clearance in India.
Example 6: Import of Freight Services by Importer at the time of Import of Goods in Indian Shipping Line of USA
Import of goods is by Mr. A for Personal Use Import Duty Import of goods is by B Ltd. for Business Use Import Duty
(Baggage) and GST (Commercial Cargo) and GST
Import Duty (BCD + SWS + IGST) on CIF Value of Import Duty (BCD + SWS + IGST) on CIF Value of
Goods (Baggage) after General Free Allowance (Importer) Goods (Commercial Cargo) (Importer)
GST (IGST or CGST + SGST) on Freight Charges on GST (IGST or CGST + SGST) on Freight Charges on
Freight Value by Indian Shipping Line (FCM) Freight Value by Indian Shipping Line (FCM)

(II) EXPORT AKIN SERVICES
Services provided BY a Tour Operator TO a Foreign Tourist in

Supply of services having place of supply in Nepal or Bhutan
relation to a Tour conducted Wholly Outside India
Payment in Foreign Currency Payment in INR Payment in Foreign Currency Payment in INR
Export Exempt Export Export

(ZERO RATED AS PER IGST (EXEMPTION IS ONLY FROM (ZERO RATED AS PER IGST (ZERO RATED AS PER IGST
ACT, 2017) IGST) ACT, 2017) ACT, 2017)
Supply of services having place of supply is outside India

[in accordance with Section 13 of IGST Act] Services provided by an Intermediary
BY Supplier in India TO Recipient outside India
Supplier and Recipient are NOT Supplier and Recipient are Both Location of Supplier of
Either Location of Supplier of
establishments of Distinct establishments of Distinct Goods AND Location of
Goods OR Location of Recipient
Persons [Explanation 1 in Persons [Explanation 1 in Recipient of Goods are in Non-
of Goods is in Taxable Territory
Section 8 of the IGST Act] Section 8 of the IGST Act] Taxable Territory
Export Exempt Taxable Exempt **

(ZERO RATED AS PER IGST (EXEMPTION IS ONLY FROM (EXEMPTION IS ONLY FROM
ACT, 2017) IGST) IGST)
** Note: Following documents shall be maintained for a minimum duration of 5 years:
(i) Copy of Bill of Lading
(ii) Copy of executed contract between Supplier / Seller and Receiver / Buyer of goods
(iii) Copy of Commission Debit Note raised by an Intermediary Service Provider in Taxable Territory from Service Recipient located in Non-Taxable Territory
(iv) Copy of Certificate of Origin issued by Service Recipient located in Non-Taxable Territory
(v) Declaration Letter from an Intermediary Service Provider in Taxable Territory on company letter head confirming that Commission Debit Note raised
relates to contract when both supplier and receiver of goods are outside the taxable territory.

Example 1: Heena Tours supplies tour services to Mr. Modi (Indian) Example 2: Heena Tours supplies tour services to Mr. Trump (USA)
Tour is in India Tour is in India
Tour is in China Tour is in China
Tour is in India and China Tour is in India and China
Example 3: Heena Tours supplies tour services to Mr. Trump (USA) Example 4: Supply of Any Services having Place of Supply in Nepal /
for trip in China Bhutan
Amount is received in Foreign Currency Amount is received in Foreign Currency
(Export) (Export)
Amount is received in Indian Currency Amount is received in Indian Currency
(Exempt) (Export)
Note: If a supply is exempt, corresponding ITC cannot be availed. Note: If a supply is exempt, corresponding ITC cannot be availed.
However, if a supply is export, corresponding ITC can be availed. However, if a supply is export, corresponding ITC can be availed.
Example 5: Supply of service from supplier in USA to recipient in Example 6: Supply of service from supplier in India to recipient in
India having Place of Supply in India USA having Place of Supply in USA
Supply of services between Distinct Persons (HO Supply of services between Distinct Persons (HO
– BO) (Import*) – BO) (Exempt)
Supply of services between Independent Persons Supply of services between Independent Persons
(Unrelated Persons) (Import*) (Unrelated Persons) (Export**)
*Note: In case of Import of Services, Recipient has to pay GST under **Note: If case of Export of Services, Supplier has to receive Foreign
RCM. Currency or Indian Rupees, wherever permitted by RBI.
Example 7: Service provided by Intermediary Example 8: Service provided by Intermediary

Either Location of Supplier of GOODS or Both Location of Supplier of GOODS and
Location of Recipient of GOODS is in Taxable Location of Recipient of GOODS is in Taxable
Territory Territory

(15) ONLINE INFORMATION AND DATABASE ACCESS AND RETRIEVAL SERVICES
BY Supplier in BY Supplier in
Taxable Territory Non-Taxable Territory
Supply of OIDARS
BY Supplier in Non-Taxable Territory
Supply of OIDARS TO Non-Business Entity / TO Non-Taxable Online
Supply of OIDARS
BY Supplier in Recipient
BY Supplier in Non-Taxable Territory
Taxable Territory (i.e. Individual or Government or Local Authority /
TO Business Entity
TO Any Person Governmental Authority or Government Entity not
engaged in Business / Profession / Industry /
Commerce)
Taxable Taxable Taxable

(Forward Charge) (Forward Charge) (Reverse Charge)
(Supplier of OIDARS in Non-Taxable Territory (Recipient i.e. Business Entity in Taxable Territory
has to pay GST) has to pay GST)
Example 1: Supplier of OIDARS in India (say Slide Bazaar) Example 2: Supplier of OIDARS in USA (say Slide Share)
OIDARS to A & Co., a CA Firm (Business Entity) (FCM) OIDARS to A & Co., a CA Firm (Business Entity) (RCM)
OIDARS to Mr. B., a Student (Non-Business Entity) (FCM) OIDARS to Mr. B., a Student (Non-Business Entity) (FCM)

(16) SECURITY SERVICES
SERVICES BY WAY OF SUPPLY OF SECURITY PERSONNEL
BY Body Corporate BY other than Body Corporate
Security Services
Security Services Security Services Security Services
Security Services BY other than
BY other than Body BY other than Body BY other than Body
BY Body Body Corporate
Corporate Corporate Corporate
Corporate TO Registered
TO Unregistered TO Registered Person TO Registered Person
TO Any Person Person
Person (Composition Scheme) (ONLY for TDS u/s 51)
(Regular Schme)
Taxable Taxable Taxable Taxable Taxable

(FCM) (FCM) (FCM) (FCM) (RCM)
Example 1: Supply of Security Services by Star Security (P) Ltd. Example 2: Supply of Security Services by Little Star Security Co.
Security Services TO Unregistered Person (FCM) Security Services TO Unregistered Person (FCM)
Security Services TO Registered Composition Security Services TO Registered Composition
(FCM) (FCM)
Taxable Person Taxable Person
Security Services TO Govt. Department (Registered Security Services TO Govt. Department (Registered
(FCM) (FCM)
only for TDS under Section 51) only for TDS under Section 51)
Security Services TO Govt. Department (Registered Security Services TO Govt. Department (Registered
(FCM) (RCM)
for TDS under Section 51 and for Payment of GST) for TDS under Section 51 and for Payment of GST)
Security Services TO Registered Regular Taxable Security Services TO Registered Regular Taxable
(FCM) (RCM)
Person Person

(17) CONSTRUCTION SERVICES
(I) CONSTRUCTION OF RESIDENTIAL PROPERTY
Construction of Single Residential Unit Construction of Residential Complex
Services by way of Pure Labour Contracts Services by way of Pure Labour Contracts
Services by way of Pure Labour Contracts of Residential Complex covered under of Residential Complex NOT covered
of Single Residential Unit Housing for All (Urban) Mission or under Housing for All (Urban) Mission or
Pradhan Mantri Awas Yojana Pradhan Mantri Awas Yojana
Primary Secondary Primary Secondary Primary Secondary

Construction Work Construction Work Construction Work Construction Work Construction Work Construction Work
Exempt Taxable Exempt Exempt Taxable Taxable
Example 1: Construction of Houses in Residential Complex under Example 2: Construction of Houses in Residential Complex NOT
Pradhan Mantri Awas Yojana (Special Case) under Pradhan Mantri Awas Yojana (General Case)
Original Construction Original Construction
Repairs, Maintenance, Renovation, etc. Repairs, Maintenance, Renovation, etc.
Example 3: Construction of Single Residential Unit (NOT part of Residential Complex)

Particulars GST
Original Construction
Repairs, Maintenance, Renovation, etc.

Services BY Landlord TO Promoter in relation to Construction of Residential Apartments by Promoter
Service (BY Any Person, generally being Landlord, TO Promoter)

Services (BY Any Person, generally being Landlord, TO Promoter)
by way of granting of long term lease of 30 years or more on
by way of Transfer of Development Rights (TDR) OR Floor Space
payment of Upfront amount (called as premium, salami, cost, price,
Index (FSI), including additional FSI, for construction of residential
development charges or by any other name) for construction of
apartments by a promoter in a project, intended for sale to a buyer,
residential apartments by a promoter in a project, intended for sale
wholly or partly
to a buyer, wholly or partly
Constructed Flats are sold before Entire Consideration is received Constructed Flats are sold before Entire Consideration is received
issuance of Completion after issuance of Completion issuance of Completion after issuance of Completion
Certificate / First Occupancy and Certificate / First Occupancy and Certificate / First Occupancy and Certificate / First Occupancy and
Tax is paid on such Constructed Tax is NOT paid on such Tax is paid on such Constructed Tax is NOT paid on such
Flats Constructed Flats Flats Constructed Flats

(RCM) (RCM)
Note: Exemption of TDR, FSI and Long Term Lease (Upfront Amount) shall be withdrawn in case of flats sold after issue of completion
certificate, but such withdrawal shall be limited to 1% of value in case of affordable houses and 5% of value in case of other than affordable
houses. This will achieve a fair degree of taxation parity between under construction and ready to move property.

(II) CONSTRUCTION OF COMMERCIAL PROPERTY
Construction in Specified Case Construction in Other Cases
Services supplied BY Electricity Distribution Utilities by way of

Construction, Erection, Commissioning, or Installation of
Any Other Case
infrastructure for extending electricity distribution network upto
the tube well of the farmer or agriculturalist for agricultural use.
Taxable
Primary Construction Work Secondary Construction Work
Exempt Taxable
Notes:
(a) Primary Construction Work is a simple term used instead of Construction, Erection, Commissioning, or Installation of Original Works
(b) Secondary Construction Work is a simple term used instead of Completion, Fitting Out, Repair, Maintenance, Renovation, or Alteration of
a Civil Structure or any other Original Works
(c) “Original Works” means all new constructions and incudes
(i) all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable;
(ii) erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise
(d) “Single Residential Unit” means a self-contained residential unit which is designed for use, wholly or principally, for residential purposes
for one family (i.e. Unit used for residential purposes for one family irrespective of number of floors and not part of Residential Complex)
(e) “Residential Complex” means more than 1 Single Residential Unit.

(18) RENTING / LEASING / HIRING SERVICES
(I) RENTING / LEASING OF IMMOVABLE PROPERTY
Renting of Residential Property
 Services by way of Renting of Residential Dwelling for use as Residence EXCEPT where the residential dwelling is
rented TO a Registered Person
Explanation: For the purpose of exemption under this entry, this entry shall cover services by way of renting of
residential dwelling to a registered person where, Exempt
(i) the registered person is proprietor of a proprietorship concern and rents the residential dwelling in his personal
capacity for use as his own residence; and
(ii) such renting is on his own account and not that of the proprietorship concern
 Services by way of Renting of Residential Dwelling (for use as residence or otherwise) TO a Registered Person Taxable
(RCM)
Renting of Commercial Property
 Renting of Vacant Land with or without structure incidental to its use for Agriculture Produce Exempt
 Services BY Central Government by way of grant of License / Lease to explore or mine Petroleum Crude / Natural Gas
or both where the consideration paid to the Central Government in the form of Central Government’s share of profit Exempt
petroleum as defined in the contract entered into by the Central Government in this behalf
 Services by way of Assignment of Right to Use Natural Resources TO an Individual Farmer for the purposes of
Exempt
Agriculture
 Long Term Lease (30 years or more) of Industrial Plots or Plots for Development of Infrastructure for Financial
Business BY State Government Industrial Development Corporations or BY any other entity having 20% or more
ownership of Central Government, State Government, Union territory TO Industrial Units or TO the Developers in Exempt
any Industrial or Financial Business Area on the one-time upfront amount (called as premium, salami, cost, price,
development charges, etc.)

Explanation: For the purpose of this exemption, the Central Government, State Government or Union Territory shall
have 20% or more ownership in the entity directly or through an entity which is wholly owned by the Central
Government, State Government or Union Territory.
Conditions:
(i) The leased plots shall be used for the purpose for which they are allotted, that is, for industrial or financial activity
in an industrial or financial business area:
(ii) State Government concerned shall monitor and enforce the above condition as per the order issued by the State
Government in this regard:
(iii) In case of any violation or subsequent change of land use, due to any reason whatsoever, the original lessor,
original lessee as well as any subsequent lessee or buyer or owner shall be jointly and severally liable to pay such
amount of GST, as would have been payable on the upfront amount charged for the long term lease of the plots
but for the exemption contained herein, along with the applicable interest and penalty:
(iv) The lease agreement entered into by the original lessor with the original lessee or subsequent lessee, or sub-lessee,
as well as any subsequent lease or sale agreements, for lease or sale of such plots to subsequent lessees or buyers or
owners shall incorporate in the terms and conditions, the fact that the GST was exempted on the long term lease of
the plots by the original lessor to the original lessee subject to above condition and that the parties to the said
agreements undertake to comply with the same.
Clarification on Long Term Lease on One-Time Upfront Amount – CBIC Circular 101/20/2019 – CGST
Clarification GST exemption on the upfront amount is admissible irrespective of whether such upfront amount is
payable or paid in one or more instalments, provided the amount is determined upfront.
 Renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a
charitable or religious trust under Section 12AA / Section 12AB or Section 10(23C)(v) or Section 10(23BBA) of IT Act,
1961, where
(a) Charges are less than Rs.1,000 per day for Renting of Rooms Exempt
(b) Charges are less than Rs.10,000 per day for Renting of Premises, Community Halls, Kalyanmandapam or open
area, and the like
(c) Charges are less than Rs.10,000 per month for Renting of Shops or other spaces for business or commerce
 Any other case Taxable

(II) RENTING / HIRING OF MOVABLE PROPERTY
Service by way of giving on hire of a Motor Vehicle

meant to carry more than 12 passengers TO a State
Transport Undertaking
Services by way of giving on hire of an Electrically

Operated Vehicle meant to carry more than 12 passengers
TO a Local Authority
Renting or Leasing of
Agro Machinery
Service by way of giving on hire of a Means of Any Other Service
in relation to
Transportation of Goods TO a Goods Transport Agency
Agricultural Produce
Service by way of giving on hire Motor Vehicle for

Transport of Students, Faculty and Staff, TO a person
who in turn is providing services of transportation of
students, faculty and staff TO Category A of Education
Institution – Pre-School Education and Education up to
Higher Secondary School or equivalent.
Renting of Motor Vehicle

designed to carry passengers
Other Cases
BY Non-Body Corporate *
TO Body Corporate

* Note: Such Non-Body Corporate does NOT issue invoice charging GST @ 12% to recipient (i.e. supplier may be registered or unregistered).

Electrically Operated Vehicle
Means Vehicle
 falling under Chapter 87 in the First Schedule to the Customs Tariff Act, 1975
 which is run solely on electrical energy derived
 from an external source or
 from one or more electrical batteries fitted to such road vehicle.
Clarification in respect of Exemption to Renting of Vehicles to State Transport Undertakings & Local Authorities – CBIC Circular
164/20/2021 – CGST
Issue Clarification regarding applicability of GST on Renting of Vehicles to State Transport Undertakings and Local Authorities.
Clarification  EN 12/2017-CT (Rate) exempts “services by way of giving on hire (a) to a state transport undertaking, a motor vehicle
meant to carry more than twelve passengers; or (aa) to a local authority, an Electrically Operate vehicle meant to carry
more than twelve passengers”.
 It is clarified that the expression “giving on hire” in Sl. No. 22 of EN 12/2017-CT (Rate) includes renting of vehicles.
Accordingly, services where the said vehicles are rented or given on hire to State Transport Undertakings or Local
Authorities are eligible for the said exemption irrespective of whether such vehicles are run on routes, timings as decided
by the State Transport Undertakings or Local Authorities and under effective control of State Transport Undertakings or
Local Authorities which determines the rules of operation or plying of vehicles.
Clarification regarding RCM on Renting of Motor Vehicles designed to carry Passengers – CBIC Circular 130/49/2019 – CGST
Clarification  RCM shall be applicable on the service by way of renting of any motor vehicle designed to carry passengers where the cost
of fuel is included in the consideration charged from the service recipient ONLY if all the following conditions:
(i) Supplier is other than a body-corporate;
(ii) Supplier does not issue an invoice charging GST @12% (with full ITC) from the service recipient; and
(iii) Supplier supplies the service to a body corporate.
Note: Even if unregistered person supplies services to a body corporate it shall be liable under RCM. RCM was never recommended for
suppliers paying GST @12% with full ITC, so that they may have the option to continue to avail ITC. RCM otherwise would have blocked the
ITC chain for them as it would have been included in the value of exempt supply as per Rule 42 and Rule 43 of CGST Rules, 2017.
Clarifications regarding RCM – CBIC Circular 177/09/2022 – CGST

Issue  In case of services provided by a non-body corporate to a body corporate by way of renting of any motor vehicle for
transport of passengers, tax is required to be paid by the body corporate under RCM.
 Representations have been received to clarify whether RCM is applicable on service of transportation of passengers
(Heading 9964) or on renting of motor vehicle designed to carry passengers (Heading 9966).
Clarification  Renting of motor vehicle with operator for transport of passengers falls under Heading 9966. According to the explanatory
notes to heading 9966, the service covered here is renting of motor vehicle for transport of passengers for a period of time
where the renter defines how and when the vehicles will be operated, determining schedules, routes and other operational
considerations.
 ‘Passenger transport services’ on the other hand fall under Heading 9964. According to the explanatory notes Heading
9964 covers passenger transport services over pre-determined routes on pre-determined schedules.
 Therefore, a clear distinction exists in service of transport of passengers and renting of a vehicle that is used for transport.
 Accordingly, as recommended by the GST Council, it is clarified that where the body corporate hires the motor vehicle (for
transport of employees etc.) for a period of time, during which the motor vehicle shall be at the disposal of the body
corporate, the service would fall under Heading 9966, and the body corporate shall be liable to pay GST on the same under
RCM. It may be seen that reverse charge thus would apply on act of renting of vehicles by body corporate and in such a
case, it is for the body corporate to use in the manner as it likes subject to agreement with the person providing vehicle on
rent.
 However, where the body corporate avails the passenger transport service for specific journeys or voyages and does not
take vehicle on rent for any particular period of time, the service would fall under Heading 9964 and the body corporate
shall not be liable to pay GST on the same under RCM.

Example 1: Hiring of Goods Transportation Vehicle Example 2: Hiring of Passenger (> 12) Transportation Vehicle
Hiring of such vehicle is to Goods Transport Agency Hiring of such vehicle is to State Transport Undertaking
Hiring of such vehicle is to Courier Agency Hiring of Electrically Operated vehicle is to Local Authority
Hiring of such vehicle is to Any Other Person Hiring of such vehicle is to Private Undertaking
Example 3: Renting of Motor Vehicle designed to carry passengers BY Example 4: Renting of Motor Vehicle designed to carry passengers BY
Super Star & Co. (Proprietorship Concern) who issues an invoice Super Star & Co. (Firm) who does NOT issues an invoice charging
charging GST @ 12% to the service recipient. GST @ 12% to the service recipient
TO Little Super Star Ltd. (FCM) TO Little Super Star Ltd. (RCM)
TO Little Super Star & Co. (FCM) TO Little Super Star & Co. (FCM)
Note: Super Star & Co. (Proprietorship Concern) is registered and Note: Super Star & Co. (Firm) may be registered but issues an invoice
thus, issuing invoice charging GST @ 12%. charging GST @ 5% (with no option of availing ITC except on such
input service in same line of business) or may be unregistered.
Example 5: Renting of Motor Vehicle designed to carry passengers BY Super Star Ltd.
Particulars GST
TO Little Super Star Ltd. (FCM)
TO Little Super Star & Co. (FCM)

(19) SERVICES BY / TO ENTITY REGISTERED UNDER SECTION 12AA / SECTION 12AB, IT ACT, 1961
(I) PRIMARY SERVICES BY SECTION 12AA / SECTION 12AB ENTITY

Services by Section 12AA / Section 12AB Entity by way of Charitable Activities
Charitable Activities MEANS activities relating to
Public Health by way of Advancement of Educational

(a) Care or Counseling of Programmes or Skill Development
Advancement (i) Terminally Ill Persons or relating to,
Preservation of Persons with severe (a) Abandoned, Orphaned or
of Religion or
Spirituality or
Environment Physical or Mental Homeless Children;
Yoga including Disability (b) Persons over the age of 65 years
Watershed, (ii) Persons afflicted with HIV residing in a Rural Area
Forests and or AIDS (c) Physically or Mentally Abused
Wildlife (iii) Persons addicted to and Traumatized Persons
Narcotics Drugs / Alcohol (d) Prisoners
(b) Public Awareness of

(i) Preventive Health,
(ii) Family Planning or
(iii) Prevention of HIV
infection
(Support Services to Health Care) (Support Services to Education)

Notes: Rural Area
 MEANS the area comprised in a village as defined in land revenue records,
 EXCLUDING the area under any municipal committee, municipal corporation, town area committee, cantonment board or notified area
committee; or any area that may be notified as an urban area by the Central Government or a State Government;

(II) OTHER SERVICES BY SECTION 12AA / SECTION 12AB ENTITY
Other Services BY Section 12AA / Section 12AB Entity
Services by way of Renting of Precincts of

Services by way of Services by an Old Age Home run BY
Religious Place meant for General Public
training or CG, SG or an entity registered under
owned or managed BY an entity registered as
coaching in Sports Section 12AA / Section 12AB of IT Act,
a charitable or religious trust under Section
BY charitable 1961 to its residents (aged 60 years or
12AA / Section 12AB of IT Act, 1961 where
entities registered more) against consideration upto Any Other Services
charges are less than
under Section Rs.25,000 / Month / Member, provided
(a) Rs.1,000 / Day for Renting of Rooms
12AA / Section that the consideration charged is
(b) Rs.10,000 / Day for Renting of Premises,
12AB of IT Act, inclusive of charges for Boarding,
Community Halls, Kalyanmandapam
1961 Lodging and Maintenance
(c) Rs.10,000 / Month for Renting of Shops

(III) SERVICES TO SECTION 12AA / SECTION 12AB ENTITY
Services TO Section 12AA / Section 12AB Entity
Services provided BY Rehabilitation Professionals

Services BY a provider of service located
recognised under the Rehabilitation Council of
in a Non-Taxable Territory TO an entity
India Act, 1992
registered under Section 12AA of IT Act,
by way of rehabilitation, therapy or counselling
1961 for the purposes of providing
and such other activity as covered by the said Act Any Other Service
Charitable Activities
at Medical Establishments, Educational
(This exemption is not applicable to
Institutions, Rehabilitation Centers established
OIDAR Services)
BY CG, SG or UT or an entity registered under
(EXEMPTION IS ONLY FROM IGST)
Section 12AA / Section 12AB of IT Act, 1961.
Example 1: Supply of Architect Services to Isha Yoga (S.12AA / Example 2: Supply of Architect Services to Isha Yoga (S.12AA Entity /
S.12AB Entity) for Charitable Activities S.12AB) for Charitable Activities
Supply is by Mr. Simbu of India to Isha Yoga (FCM) Supply is by Ms. Melina of USA to Isha Yoga

Notes:
Clarification on Hostel Accommodation provided by Trusts to Students – CBIC Circular 32/06/2018 – CGST
Issue Is hostel accommodation provided by Trusts to students covered within the definition of charitable activities and thus,
exempt under EN 12/2017-CT (Rate)?
Clarification Hostel accommodation services do not fall within the ambit of charitable activities as defined in EN 12/2017-CT(Rate).
Clarification on GST on Residential Camps by Religious and Charitable Trusts – CBIC Circular 66/40/2018 – CGST
Issue GST on Residential Programmes or Residential Camps meant for advancement of Religion, Spirituality or Yoga by Religious
and Charitable Trusts?
Clarification The services provided by entity registered under Section 12AA of the Income Tax Act, 1961 by way of advancement of
religion, spirituality or yoga are exempt.
 Fee or consideration charged in any other form from the participants for participating in a Religious, Yoga or Meditation
Camp meant for advancement of religion, spirituality or yoga shall be exempt.
Residential programmes or camps where the fee charged includes cost of lodging and boarding shall also be exempt as long
as the primary and predominant activity, objective and purpose of such residential programmes or camps is advancement
of religion, spirituality or yoga.
 However, if charitable or religious trusts merely or primarily provide accommodation or serve food and drinks against
consideration in any form including donation, such activities will be taxable.
Similarly, activities such as holding of fitness camps or classes such as those in aerobics, dance, music etc. will be taxable.

(20) RELIGIOUS SERVICES
(I) RELIGIOUS SERVICES (II) RELIGIOUS SERVICES

BY SPECIFIED PERSONS BY ANY PERSON
Services by way of Renting of Conduct of any

Precincts of Religious Place meant for Religious Any Other Case
General Public owned or managed BY Ceremony
Services BY Haj
an entity registered as a charitable or
Committee and
religious trust under Section 12AA / Exempt Taxable
Kailash
Section 12AB OR a trust or an
Mansarovar in Other Religious
institution registered under Section
respect of a Services BY / TO an
10(23C)(v) OR a body or an authority
Religious entity is registered
covered under Section 10(23BBA) of IT
Pilgrimage under Section 12AA
Act, 1961, where charges are less than
facilitated by / Section 12AB of IT
(a) Rs.1,000 / day for Renting of
Government of Act, 1961
Rooms
India under
(b) Rs.10,000 / day for Renting of
Bilateral
Premises, Community Halls,
Agreement
Kalyanmandapam
(c) Rs.10,000 / month for Renting of
Shops
Exempt Exempt Refer “S.12AA/12AB

Entity” Category
Note: “Religious Place” means a place which is primarily meant for conduct of prayers / worship pertaining to a religion, meditation /
spirituality. “General Public” means the body of people at large sufficiently defined by some common quality of public or impersonal nature.

(21) HEALTH CARE SERVICES
(I) PRIMARY HEALTH CARE SERVICES
Animals or Birds Humans
Services BY a Veterinary Health Care Services BY Services by way of

Clinic in relation to Health (a) Clinical Establishment (i.e. Hospital / Nursing Home, etc. for diagnosis, Transportation of the
Care of Animals / Birds treatment or care in any recognized system of medicines including a Place / Patient in an
Lab for diagnostic or investigative services of diseases) Ambulance BY Any
Services by way of (b) Authorized Medical Practitioner (i.e. Registered Medical Practitioner / Person
Artificial Insemination of Qualified Medical Professional in any recognized system of medicines) (BY Clinical
Livestock (other than (c) Para-Medics (i.e. Trained health care professionals like nursing staff, Establishment OR BY
Horses) physiotherapists, technicians, lab assistants, etc) Other Persons)
Exempt BY Clinical Establishment by way of providing room [other Exempt

than Intensive Care Unit (ICU) / Critical Care Unit (CCU) / Any
Intensive Cardiac Care Unit (ICCU) / Neo-natal Intensive Other
Care Unit (NICU)] having room charges exceeding Rs.5000 Case
per day to a person receiving health care services.
Taxable Exempt

(II) HAIR TRANSPLANT OR COSMETIC / PLASTIC SURGERY
Hair Transplant OR Cosmetic / Plastic Surgery BY Clinical Establishment, Authorized Medical Practitioner or Para-Medics
Undertaken due to Congenital Defects, Developmental

Undertaken to Enhance Beauty
Abnormalities, Injury or Trauma
Exempt Taxable
Notes:
 Health Care Services
Means Any Service by way of Diagnosis, Treatment or Care for Illness, Injury, Deformity, Abnormality or Pregnancy in any
Recognized System of Medicines in India
Includes Services by way of Transportation of Patient to and from a Clinical Establishment
But Does Not Hair Transplant or Cosmetic / Plastic Surgery EXCEPT when undertaken to restore or reconstruct anatomy or
Include functions of body affected due to Congenital Defects, Developmental Abnormalities, Injury or Trauma
 In terms of Section 2(h) of Clinical Establishments Act, 2010, Recognized Systems of Medicines in India includes Allopathy, Yoga,
Naturopathy, Ayurveda, Homeopathy, Siddha, Unani or any other system that may be recognized by Central Government. It is important
to note that Reiki, Colour Therapy, Accupuncture, Pranic Healing Treatments etc. are NOT recognized systems of medicines.

(III) OTHER HEALTH CARE SERVICES
Other Services
Services BY Entity registered Section 12AA for Public

Health by way of
Services provided BY Rehabilitation
(a) Care or Counseling of
Professionals recognised under the Rehabilitation
(i) Terminally Ill Persons or Persons with severe
Council of India Act, 1992
Physical or Mental Disability
by way of rehabilitation, therapy or counselling
(ii) Persons afflicted with HIV or AIDS
and such other activity as covered by the said Act Any Other Service
(iii) Persons addicted to Narcotics Drugs / Alcohol
at Medical Establishments, Educational
Institutions, Rehabilitation Centers established
(b) Public Awareness of
BY CG, SG or UT or an entity registered under
(i) Preventive Health,
Section 12AA / Section 12AB of IT Act, 1961.
(ii) Family Planning or
(iii) Prevention of HIV infection

Notes:
Clarifications regarding Exemption on Health Care Services – CBIC Circular 177/09/2022 – CGST
Issue Applicability of GST on services in form of Assisted Reproductive Technology (ART) / In Vitro fertilization (IVF)
Clarification  Health care services provided by a clinical establishment, an authorized medical practitioner or para-medics are exempt.
 The abnormality/disease/ailment of infertility is treated using ART procedure such as IVF. It is clarified that services by
way of IVF are also covered under the definition of health care services for the purpose of above exemption notification.
Clarification on Health Care Services – CBIC Circular 32/06/2018 – CGST

Issue Hospitals hire senior doctors/consultants/ technicians independently, without any contract of such persons with the patient;
and pay them consultancy charges, without there being any employer-employee relationship. Will such consultancy charges
be exempt from GST? Will revenue take a stand that they are providing services to hospitals and not to patients and hence
must pay GST?
Clarification Health care services provided by a clinical establishment, an authorised medical practitioner or para-medics are exempt. Thus,
services provided by senior doctors/consultants/ technicians hired by the hospitals, whether employees or not, are healthcare
services which are exempt.

Issue Hospitals charge the patients, say, Rs.10.000/- and pay to the consultants/ technicians only Rs.7500/- and keep the balance for
providing ancillary services which include nursing care, infrastructure facilities, paramedic care, emergency services, checking
of temperature, weight, blood pressure etc. Will GST be applicable on such money retained by the hospitals?
Clarification Healthcare services have been defined to mean any service by way of diagnosis or treatment or care for illness, injury,
deformity, abnormality or pregnancy in any recognised system of medicines in India. Therefore, hospitals also provide
healthcare services. The entire amount charged by them from the patients including the retention money and the fee /
payments made to the doctors etc., is towards the healthcare services provided by the hospitals to the patients and is exempt.

Issue Health care services provided by the clinical establishments will include food supplied to the patients; but such food may be
prepared by the canteens run by the hospitals or may be outsourced by the Hospitals from outdoor caterers. What will be the
GST implication?
Clarification When outsourced, there should be no ambiguity that suppliers shall charge tax as applicable and hospital will get no ITC. If

hospitals have their own canteens and prepare their own food; then no ITC will be available on inputs including capital goods
and in turn if they supply food to doctors and their staff; such supplies, even when not charged, may be subjected to GST.
Food supplied to the in-patients as advised by the doctor/nutritionists is a part of composite supply of healthcare and not
separately taxable. Other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable.
Clarification on Ambulance Services – CBIC Circular 51/25/2018 – CGST

Issue Whether supply of services by way of transportation of patients BY Government / BY Private Service Providers PSP’s is
exempt?
Clarification Yes. EN 12/2017 CT(Rate) specifically exempts services provided by way of transportation of a patient in an ambulance.
Issue Whether services provided BY PSP’s TO the State Governments by way of transport of patients on behalf of State
Governments against consideration charged from the State government under National Health Mission also exempt?
Clarification Yes.
(i) EN 12/2017 CT(Rate) specifically exempts services provided by way of transportation of a patient in an ambulance.
(ii) Also, EN 12/2017 CT(Rate) specifically exempts 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 or an Government Entity 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.
 Functions of ‘Health & Sanitation’ is entrusted to Panchayats under Article 243G read along with Eleventh Schedule.
 Functions of ‘Public Health’ is entrusted to Municipality under Article 243W read along with Twelfth Schedule.
 Ambulance services are an activity in relation to the functions entrusted to Panchayats and Municipality.

(22) EDUCATIONAL SERVICES
(I) PRIMARY EDUCATIONAL SERVICES

Any Service BY Educational Institution
(a) TO Students, Faculty & Staff &
(b) by way of conduct of Entrance Examination against Entrance Fee
Education Institution MEANS an institution providing services by way of
(A) Pre-School Education and (B) Education as a Part of a

Education up to Higher Secondary Curriculum for obtaining a
(C) Approved Vocational Educational Course
School or equivalent Qualification Recognized by Any Law
for the time being in force
Qualification Courses offered BY Industrial Training

International Qualification NOT
recognized by Institutes / Industrial Training Centre
Schools OR Private Tuitions recognized by
Indian Law affiliated to National Council for
Boarding Schools Indian Law
(UGC / AICTE) Vocational Training or State Council for
Vocational Training in respect of
Exempt Taxable Exempt Taxable designated trades under Apprenticeship Other
Act, 1961 (Refer Note 1) Courses
OR
Modular Employable Skill Course
approved BY NCVT run by a person
registered with Director General of
Training
Exempt Taxable
Explanation: For removal of doubts, it is clarified that the Central Educational Board and State Educational Board shall be treated as Educational
Institution for the limited purpose of providing services by way of conduct of examination to the students.
Explanation: For removal of doubts, it is clarified that any authority, board or body set up by the Central Government or State Government including
National Testing Agency for conduct of entrance examination for admission to educational institutions shall be treated as educational institution for the
limited purpose of providing services by way of conduct of entrance examination for admission to educational institutions.

(II) OTHER EDUCATIONAL SERVICES
Specified Cases Other Cases
 Services provided BY the following: Any services other than

(a) Services provided BY National Skill Development Corporation (NSDC) or BY specified cases
Sector Skill Council (SSC) approved by the NSDC or BY Assessment Agency /
Training Partner approved by the NSDC or SSC in relation to National Skill Taxable
Development Programme or Vocational Skill Development Course or other
scheme implemented by NSDC
(b) Services of Assessing Bodies empanelled centrally BY Directorate General of Exempt
Training, Ministry of Skill Development and Entrepreneurship by way of
assessments under Skill Development Initiative (SDI) Scheme;
(c) Services provided BY Training Providers (Project Implementation Agencies)
under Deen Dayal Upadhyaya Grameen Kaushalya Yojana under the Ministry
of Rural Development by way of offering skill or vocational training courses
certified by National Council for Vocational Training.
 Services provided BY the Indian Institutes of Management
Clarification on Services by IIMs – CBIC Circular 82/01/2019 – CGST:
It is clarified that all the IIMs are “educational institutions” as defined under NN
12/ 2017 CT (Rate) as they provide education as a part of a curriculum for obtaining
a qualification recognized by law for the time being in force.
Exempt /
IIMs also provide various short duration/ short term programs for which they
Taxable
award participation certificate to the executives/ professionals as they are
considered as “participants” of the said programmes. These participation
certificates are not any qualification recognized by law. Such participants are also
not considered as students of IIM. Services provided by IIMs as an educational
institution to such participants is not exempt from GST.

 Services provided TO an Educational Institution by way of Services relating to

Admission to or Conduct of Examination
Exempt
This exemption is for ALL Categories of Education Institutions – Category A,
Category B and Category C.
 Services provided TO an Educational Institution by way of

(a) Transportation of Students, Faculty and Staff
(b) Catering, including any Mid-Day Meals Scheme sponsored by Government
(c) Security / Cleaning / House-Keeping Services in such Educational Institution
This exemption is ONLY for Category A of Education Institution – Pre-School
Education & Education up to Higher Secondary School / equivalent. (Refer Note 2) Exempt
 Service by way of giving on hire motor vehicle for Transport of Students, Faculty
and Staff, TO a person who in turn is providing services of transportation of
students, faculty and staff TO Category A of Education Institution – Pre-School
Education and Education up to Higher Secondary School or equivalent.
 Services provided TO an Educational Institution by way of Supply of online

educational journals or periodicals
This exemption is ONLY for Category B of Education Institution – Education as a
part of a curriculum for obtaining a Qualification recognized by any law for the
time being in force
 Services provided TO an Educational Institution FROM provider of service located Exempt

in Non-Taxable Territory by way of Supply of online educational journals or
periodicals
This exemption is ONLY for Category B of Education Institution – Education as a
part of a curriculum for obtaining a Qualification recognized by any law for the
time being in force.

 Services provided TO Government administration under any Training Programme

for which 75% or more of the Total Expenditure is borne by Government Exempt
administration
 Services provided BY the National Centre for Cold Chain Development under the
Ministry of Agriculture, Cooperation and Farmer’s Welfare by way of cold chain Exempt
knowledge dissemination
 Services of public libraries by way of

lending of books, publications or any
Exempt
other knowledge- enhancing content or
material
 Services by way of training or coaching in -

(a) Recreational Activities relating to Arts or Culture BY an individual, or Exempt
(b) Sports BY charitable entities registered u/s. 12AA / u/s. 12 AB of IT Act, 1961
 Services BY an entity registered under Section 12AA of IT Act, 1961 by way of

advancement of educational programmes / skill development relating to
(a) Abandoned, Orphaned or Homeless Children
Exempt
(b) Physically or Mentally Abused and Traumatized Persons
(c) Prisoners
(d) Persons over the age of 65 years residing in Rural Area
 Service BY an Unincorporated Body / Registered Non-Profit Entity, engaged in

promotion of Education, TO its own members against consideration in the form of Exempt
Membership Fee upto an amount of Rs.1,000 / Year / Member

Notes:
Clarification on Applicability of GST Exemption to the DG Shipping Approved Maritime Courses conducted by Maritime Training
Institutes of India – CBIC Circular 117/36/2019 – CGST
Issue Section 76 of the Merchant Shipping Act, 1958 provides for the certificates of competency to be held by the officers of ships. It
states that every Indian ship, when going to sea from any port or place, shall be provided with officers duly certificated under
this Act in accordance with such manning scales as may be prescribed.
Further, Section 79 provides that the Central Government or a person duly authorised by it shall appoint persons for the
purpose of examining the qualifications of persons desirous of obtaining certificate of competency under section 78 of the Act.
The Director General of Shipping under the Merchant Shipping (standards of training, certification and watch-keeping for
Seafarers) Rules, 2014 is empowered to designate assessment centres and to approve
(i) the training course,
(ii) training, examination and assessment programme, and
(iii) approved training institute etc.
Clarification  From the above discussion, it is seen that the Maritime Training Institutes and their training courses are approved by the
Director General of Shipping which are duly recognised under the provisions of the Merchant Shipping Act, 1958 read
with the Merchant Shipping (standards of training, certification and watch-keeping for Seafarers) Rules, 2014.
 Therefore, the Maritime Institutes are educational institutions under GST Law and the courses conducted by them are
exempt from levy of GST. The exemption is subject to meeting the conditions specified in EN 12/ 2017-CT (Rate).
Clarification regarding GST on supply of various services by Central and State Board (such as National Board of Examination) – CBIC
Circular 151/07/2021 – CGST
Issue Certain representations have been received seeking clarification in respect of taxability of various services supplied by Centre
and State Boards such as National Board of Examination (NBE). These services include:
(a) entrance examination (on charging a fee) for admission to educational institution & various input services for conducting
such entrance examination for students,
(b) accreditation of educational institutions or professional so as to authorize them to provide their respective services.
Clarification  According to Explanation 3(iv) of the EN 12/ 2017-CT (Rate), “Central and State Educational Boards” are treated as
Educational Institution for the limited purpose of providing services by way of conduct of examination to the students.
Therefore, NBE is an ‘Educational Institution’ in so far as it provides services by way of conduct of examination, including
any entrance examination, to the students.

 Following services supplied BY an educational institution are exempt from GST vide Serial No. 66 of EN 12/ 2017-CT
(Rate); Services provided
(a) by an educational institution to its students, faculty and staff;
(b) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance
fee;
 Similarly, services provided TO an educational institution, relating to admission to, or conduct of examination is also
exempt from GST vide Serial No. 66 (b)(iv) of EN 12/2017-CT (Rate).
 Taking into account the above, the GST Council has recommended, to clarify as below:
(a) GST is exempt on services provided by Central or State Boards (including the boards such as NBE) by way of conduct
of examination for the students, including conduct of entrance examination for admission to educational institution.
(b) GST is also exempt on input services relating to admission to, or conduct of examination, such as online testing
service, result publication, printing of notification for examination, admit card and questions papers etc, when
provided to such Boards.
(c) GST is applicable (not exempt) applies to other services provided by such Boards, namely of providing accreditation
to an institution or to a professional (accreditation fee or registration fee such as fee for FMGE screening test) so as to
authorise them to provide their respective services
Clarifications regarding Exemption on Educational Services – CBIC Circular 177/09/2022 – CGST

Issue Applicability of GST on application fee charged for entrance or the fee charged for issuance of eligibility certificate for
admission or for issuance of migration certificate by educational institutions
Clarification  Consideration charged by the educational institutes by way of entrance fee for conduct of entrance examination is also
exempt. The exemption is wide enough to cover the amount or fee charged for admission or entrance, or amount charged
for application fee for entrance, or the fee charged from prospective students for issuance of eligibility certificate to them
in the process of their entrance/admission to the educational institution.
 Services supplied by an educational institution by way of issuance of migration certificate to the leaving or ex-students
are also covered by the exemption. Accordingly, such activities of educational institution are also exempt.
Clarification on Taxability of Services provided by Industrial Training Institutes – CBIC Circular 55/29/2018 – CGST
Issue Whether GST is payable on vocational training provided by private ITIs in designated trades and in other than designated
trades?

Clarification It is clarified that Private ITIs qualify as an educational institution as defined under Para 2(y) of EN 12/2017-CT(Rate) if the
education provided by these ITIs is approved as vocational educational course.
 Services provided BY a Private ITI in respect of designated trades notified under Apprenticeship Act, 1961 are exempt.
Also, services provided BY such Private ITI by way of conduct of entrance examination against consideration in the form
of entrance fee is exempt. Moreover, services provided TO such Private ITI, by way of, services relating to admission to or
conduct of examination is also exempt.
 Services provided by a Private ITI in respect of other than designated trades would be liable to pay GST and are taxable.
Also, services provided BY such Private ITI by way of conduct of entrance examination against consideration in the form
of entrance fee is taxable. Moreover, services provided TO such Private ITI, by way of, services relating to admission to or
conduct of examination is also taxable.
Note: However, as far as Government ITIs are concerned, services (course fees, entrance examination fees, etc) provided BY a
Government ITI TO individual trainees / students, is exempt under (whether for approved vocational course or otherwise) as
these are in the nature of services provided by the Central Government or State Government to individuals.
Clarification in respect of Exemption to Free Coaching Services by Coaching Institutions and NGOs under Central Sector Scheme – CBIC
Circular 164/20/2021 – CGST
Issue Clarification regarding applicability of GST on free coaching services supplied by coaching institutions and NGOs under the
central sector scheme of “Scholarships for students with Disabilities” where entire expenditure is provided by Government to
coaching institutions by way of grant in aid.
Clarification  In this regard, it is to mention that Entry 72 of EN 12/2017-CT (Rate), exempts 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.
 The scope of this entry is wide enough to cover coaching services provided by coaching institutions and NGOs under the
central scheme of ”Scholarships for students with Disabilities” where total expenditure is borne by the Government by
way of funding to institute providing such coaching.
Clarification regarding applicability of GST on supply of food in Anganwadis and Schools – CBIC Circular 149/05/2021 – CGST
Issue Representations have been received seeking clarification regarding applicability of GST on the issues as to whether serving of
food in schools under Mid-Day Meals Scheme would be exempt if such supplies are funded by government grants and / or
corporate donations.

Clarification  Serial No. 66(b)(ii) of EN 12/2017-CT (Rate), exempts services provided TO an educational institution, by way of catering,
including any mid-day meals scheme sponsored by the CG, SG or UT. This entry applies to pre-school and schools.
 Accordingly, it is clarified that services provided to an educational institution by way of serving of food (catering
including mid- day meals) is exempt from levy of GST irrespective of its funding from government grants or corporate
donations.
 Educational institutions as defined in the notification include Aganwadi. Hence, serving of food to anganwadi shall also
be covered by said exemption, whether sponsored by government or through donation from corporates.
Clarification on Services provided by a College Hostel Mess – CBIC Circular 28/02/2018 – CGST
Issue Whether services provided by a COLLEGE Hostel Mess are exempt from GST?
Clarification It has been clarified that the educational institutions have mess facility for providing food to their students and staff. Such
facility is either run by the institution / students themselves or is outsourced to a third person.
(i) If the catering services is one of the services provided by an educational institution to its students, faculty and staff and
the said educational institution is covered by the definition of ‘educational institution’ as given above, then the same is
exempt.
(ii) If the catering services, i.e., supply of food or drink in a mess or canteen, is provided by anyone other than the educational
institution, then it is a supply of service to the concerned educational institution and attracts GST.
Author’s Note: It is important to note that Circular is addressing about COLLEGE Hostel Mess. If the same was about SCHOOL Hostel Mess,
then catering services by such educational institution (SCHOOL) to its students, faculty and staff is exempt as well as catering services by 3rd
person to such educational institution (SCHOOL) is also exempt.

Example 1: Supply of Service BY Educational Institution
Particulars Category A – EI Category B – EI Category C – EI
(1) Any Service to Students / Faculty / Staff
(2) By way of conduct of examination against Entrance Fees
(3) Any Other Service (For example supply of manpower service to Companies)
Example 2: Supply of Service BY 3rd Party TO Educational Institution

(1) Service relating to Admission / Conduct of Examination
(2) Transportation Service of Students / Faculty / Staff
Catering Service including Mid-Day Meals Scheme sponsored by Government
Security / Cleaning / House-Keeping Service
(3) Online Education Journal / Periodicals Service
(4) Any Other Service
Example 3: Supply of Service BY 4th Party TO 3rd Party (providing services TO Educational Institution)
(1) Hiring of Motor Vehicle for Transportation Sr. of Students / Faculty / Staff
(2) Any Other Service

(23) LEGAL SERVICES
(I) BY COURT / TRIBUNAL / ARBITRAL TRIBUNAL
BY Court or
BY Arbitral Tribunal
Tribunal
TO Business Entity in TO Business Entity in

Services by any TO Non-Business TO Business
Taxable Territory with an Taxable Territory with an
Court or any Entity OR Entity in Non-
Aggregate Turnover in the Aggregate Turnover in the
Tribunal TO Government or Taxable Territory
Preceding FY upto such Preceding FY more than such
established under Local Authority or (irrespective of its
amount as makes it eligible amount as makes it eligible
any law for the Governmental Aggregate
for exemption from for exemption from
time being in force Authority or Turnover in
registration under the registration under the CGST
Government Entity Preceding FY)
CGST Act Act
Schedule III
(Not Supply) Exempt Exempt Taxable (RCM) Taxable (FCM)
Example: Arbitral Tribunal is supplying services to the following persons:

Particulars GST
(i) Service to Tamil Nadu Government
(ii) Service to Ram and Seeta / Mr. Trump and Mrs. Trump for family dispute
(iii) Service to Lakshman Ltd. for business dispute (Agg. TO of Previous Yr. of Lakshman Ltd. is Rs.9 lakhs)
(iv) Service to Hanuman & Co. for business dispute (Agg. TO of Previous Yr. of Hanuman & Co. is Rs.75 lakhs) (RCM)
(v) Service to Ravan Inc. for business dispute
(FCM)
Note: Inc. always implies Foreign Company

(II) BY ADVOCATES
BY Advocates other than Senior Advocates OR

BY Firm/LLP of Advocates

TO Non-Business Entity Taxable Territory with an Taxable Territory with an TO Business Entity in
TO ANY OR Aggregate Turnover in the Aggregate Turnover in the Non-Taxable
Advocate OR TO Government or Local Preceding FY upto such Preceding FY more than Territory
Firm/LLP of Authority or amount as makes it eligible such amount as makes it (irrespective of its
Advocate Governmental Authority for exemption from eligible for exemption Aggregate Turnover
or Government Entity registration under the from registration under the in Preceding FY)
CGST Act CGST Act
Refer Below Exempt Exempt Taxable (RCM) Taxable (FCM)
Advisory Services to Advocate Representation Services through Advocate
TO Advocate OR Firm / LLP TO Advocate OR Firm / LLP

TO Litigant (Client) with an TO Litigant (Client) with an
of Advocate with an of Advocate with an
Preceding FY upto such Preceding FY more than
amount as makes it eligible for amount as makes it eligible for
exemption from registration exemption from registration
Exempt Exempt Exempt Taxable (RCM)

Recipient  Litigant

BY Senior Advocate

TO Non-Business Entity Taxable Territory with an Taxable Territory with an TO Business Entity in
TO ANY OR Aggregate Turnover in the Aggregate Turnover in the Non-Taxable
Advocate OR TO Government or Local Preceding FY upto such Preceding FY more than Territory
Firm/LLP of Authority or amount as makes it eligible such amount as makes it (irrespective of its
Advocate Governmental Authority for exemption from eligible for exemption Aggregate Turnover
or Government Entity registration under the from registration under the in Preceding FY)
CGST Act CGST Act
Refer Below Exempt Exempt Taxable (RCM) Taxable (FCM)
Advisory Services to Advocate Representation Services through Advocate
TO Advocate OR Firm / LLP TO Advocate OR Firm / LLP

TO Litigant (Client) with an TO Litigant (Client) with an
of Advocate with an of Advocate with an
Exempt Taxable (RCM) Exempt Taxable (RCM)

Recipient  Advocate Recipient  Litigant

Legal Services BY Any Advocate
(Firm of Advocates OR Individual Advocate other than Senior Advocate OR Senior Advocate)
Particulars GST
Advisory Services or Representation Services TO Non-Business Entity
Advisory Services or Representation Services TO Govt. / Local Authority / Governmental Authority / Government Entity
Advisory Services or Representation Services TO Business Entity in Taxable Territory (Business Entity’s Agg. TO in PY is
upto threshold limit)
Advisory Services or Representation Services TO Business Entity in Taxable Territory (Business Entity’s Agg. TO in PY is
more than threshold limit) (RCM – Business Entity)
Advisory Services or Representation Services TO Business Entity in Non-Taxable Territory

(FCM)
Legal Services BY Firm of Advocates OR Individual Advocate other than Senior Advocate
GST GST
Particulars (FOA/IA to AA) (AA to BE)
Advisory Services TO Another Adv. who in turn provides it to Business Entity

Another Adv.’s Agg. TO in Pre. Year is upto threshold limit
Business Entity’s Agg. TO in Pre. Year is upto threshold limit
Another Adv.’s Agg. TO in Pre. Year is more than threshold limit
Another Adv.’s Agg. TO in Pre. Year is upto threshold limit (RCM – Business Entity)
Business Entity’s Agg. TO in Pre. Year is more than threshold limit
Another Adv.’s Agg. TO in Pre. Year is more than threshold limit (RCM – Business Entity)
Advisory Services TO Another Adv. who in turn provides it to Non-Business Entity or Govt.
Non-Business Entity (No Agg. TO in PY) or Govt. (Agg. TO in PY is NOT relevant)

Representation Services TO Another Adv. who in turn provides it to Business Entity
Another Adv.’s Agg. TO in Pre. Year is upto threshold limit (RCM – Business Entity i.e. Litigant)
Business Entity’s Agg. TO in Pre. Year is more than threshold limit RCM on amt. paid by Business Entity to Another Adv.

Another Adv.’s Agg. TO in Pre. Year is more than threshold limit (RCM – Business Entity i.e. Litigant)
Representation Services TO Another Adv. who in turn provides it to Non-Business Entity or Govt.
Legal Services BY Senior Advocate

GST GST
Particulars (SA to AA) (AA to BE)

Another Adv.’s Agg. TO in Pre. Year is more than threshold limit (RCM – Another Adv.)
Another Adv.’s Agg. TO in Pre. Year is upto threshold limit (RCM – Business Entity)
Another Adv.’s Agg. TO in Pre. Year is more than threshold limit (RCM – Another Adv.) (RCM – Business Entity)

Advisory Services TO Another Adv. who in turn provides it to Non-Business Entity or Govt.
Another Adv.’s Agg. TO in Pre. Year is more than threshold limit (RCM – Another Adv.)
Another Adv.’s Agg. TO in Pre. Year is upto threshold limit (RCM – Business Entity i.e. Litigant)

Another Adv.’s Agg. TO in Pre. Year is more than threshold limit (RCM – Business Entity i.e. Litigant)
Representation Services TO Another Adv. who in turn provides it to Non-Business Entity or Govt.
Clarification on leviability of GST on fee paid by litigants in the Consumer Disputes Redressal Commissions and penalty imposed by or
amount paid to these Commissions – CBIC Circular 32/06/2018 – CGST
Issue Is GST leviable on the fee/amount charged in the following situations/cases: –
(i) A customer pays fees while registering complaints to Consumer Disputes Redressal Commission office and its subordinate
offices. These fees are credited into State Customer Welfare Fund’s bank account.
(ii) Consumer Disputes Redressal Commission office and its subordinate offices charge penalty in cash when it is required.
(iii) When a person files an appeal to Consumers Disputes Redressal Commission against order of District Forum, amount
equal to 50% of total amount imposed by the District Forum or Rs.25,000/- whichever is less, is required to be paid.
Clarification Services by any court or Tribunal established under any law for the time being in force is neither a supply of goods nor
services. Consumer Disputes Redressal Commissions (National/ State/ District) may not be tribunals literally as they may not

have been set up directly under Article 323B of the Constitution. However, they are clothed with the characteristics of a
tribunal on account of the following: -
(i) Statement of objects and reasons as mentioned in the Consumer Protection Bill state that one of its objects is to provide
speedy and simple redressal to consumer disputes, for which a quasi-judicial machinery is sought to be set up at District,
State and Central levels.
(ii) The President of the District/State/National Disputes Redressal Commissions is a person who has been or is qualified to
be a District Judge, High Court Judge and Supreme Court Judge respectively.
(iii) These Commissions have been vested with powers of a civil court under CPC for issuing summons, enforcing attendance
of defendants/witnesses, reception of evidence, discovery/production of documents, examination of witnesses, etc.
(iv) Every proceeding in these Commissions is deemed to be judicial proceedings as per Sections 193/228 of IPC.
(v) The Commissions have been deemed to be a civil court under CrPC.
(vi) Appeals against District Commissions lie to State Commission while appeals against the State Commissions lie to the
National Commission. Appeals against National Commission lie to the Supreme Court.
In view of the aforesaid, it is hereby clarified that fee paid by litigants in the Consumer Disputes Redressal Commissions are
not leviable to GST. Any penalty imposed by or amount paid to these Commissions will also not attract GST.

(24) AGRICULTURAL SERVICES
(I) PRIMARY AGRICULTURAL SERVICES
(B) Processes carried out at an

(A) Agricultural Operations (D) Renting or Leasing of
Agricultural Farm
directly related to production of Agro Machinery or
which do not alter the
any Agricultural Produce (C) Supply of Farm Labor in Vacant Land with or without
essential characteristics of
including Cultivation, relation to Agricultural Produce a structure incidental to its
Agricultural Produce
Harvesting, Threshing, Plant use in relation to Agricultural
but make it only marketable
Protection or Testing Produce
for the Primary Market
(E) Agricultural Extension Services in (G) Services provided BY Agriculture

relation to Agricultural Produce (F) Loading, Unloading, Packing, Storage or Produce Marketing Committee (such as
(i.e. Application of Scientific Research and Warehousing (i.e. Cargo Handling) of shed, water, electricity, grading facilities) or
Knowledge to Agricultural Practices Agricultural Produce (Refer Note 1) Services provided BY a Commission Agent
through Farmer Education and Training) for Sale or Purchase of Agricultural Produce
Exempt Exempt Exempt

(II) OTHER AGRICULTURAL SERVICES
 Services by way of Pre-Conditioning, Pre-Cooling, Any services other than

Ripening, Waxing, Retail Packing or Labelling of Fruits specified cases
Exempt
and Vegetables which do not change or alter the
essential characteristics of the said Fruits or Vegetables Taxable
Note: Agricultural produce
 Service by way of Transportation of Agricultural Produce by GTA, Rail or Vessel means
(NOT by Air) Exempt  any produce of agriculture
 Service by way of Transportation of Rice by GTA, Rail or Vessel (NOT by Air) out of cultivation of plant
and rearing of all life form
 Services by way of Loading, Unloading, Packing, Storage or Warehousing of Rice
of animals, except rearing
 Services by way of Storage or Warehousing of Cereals, Pulses, Fruits and Exempt
of horses for food, fibre,
Vegetables
fuel, raw materials or other
similar products,
 Services by way of Warehousing of Minor Forest Produce Exempt
 on which either no further
 Carrying out an intermediate production process as job work in relation to processing is done or such
Exempt processing is done as is
Agriculture Produce (Refer Note 2)
usually done by a
 Services by way of Artificial Insemination of Livestock (other than Horses) Exempt cultivator or producer
 which does not alter its
 Services provided BY the National Centre for Cold essential characteristics
Chain Development under the Ministry of Agriculture, but makes it marketable
Exempt
Cooperation and Farmer’s Welfare by way of cold for primary market;
chain knowledge dissemination

 Service by way of Assignment of Right to Use
Natural Resources TO an Individual Farmer for the Exempt
purposes of Agriculture
 Services supplied BY Electricity Distribution Utilities by way of construction,

erection, commissioning, or installation (ONLY Primary Construction Work) of
Exempt
infrastructure for extending electricity distribution network upto the tube well of
the farmer or agriculturalist for agricultural use
 Service BY an Unincorporated Body / Registered Non-Profit Entity, engaged in

(a) activities relating to the welfare of Agricultural Labour or Farmers;
Exempt
(b) promotion of Agriculture, TO its own members against consideration in the
form of Membership Fee upto an amount of Rs.1,000 / Year / Member
Notes:
Clarification on Warehousing of Agricultural Produce – CBIC Circular 16/16/2018 – CGST
Issue Is GST applicable on warehousing of agricultural produce such as tea (i.e. black tea, white tea etc.), processed coffee beans or
powder, pulses (de-husked or split), jaggery, processed spices, processed dry fruits, processed cashew nuts?
Clarification GST rate on loading, unloading packing, storage or warehousing of agricultural produce is Nil. Agricultural produce in the
notification has been defined to mean any produce out of 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, on which either no further processing is done
or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but
makes it marketable for primary market.
(i) Processed Tea and Coffee: Tea used for making the beverage, such as black tea, green tea, white tea is a processed
product made in tea factories after carrying out several processes, such as drying, rolling, shaping, refining, oxidation,
packing etc. on green leaf and is the processed output of the same. Thus, green tea leaves and not tea is the “agricultural
produce” eligible for exemption available for loading, unloading, packing, storage or warehousing of agricultural produce.
Same is the case with coffee obtained after processing of coffee beans.
(ii) Jaggery: Similarly, processing of sugarcane into jaggery changes its essential characteristics. Thus, jaggery is also not an
agricultural produce.

(iii) Pulses: Pulses commonly known as dal are obtained after dehusking or splitting or both. The process of dehusking or
splitting is usually not carried out by farmers or at farm level but by the pulse millers. Therefore pulses (dehusked or split)
are also not agricultural produce. However, whole pulse grains such as whole gram, rajma etc. are covered in the
definition of agricultural produce.
In view of the above, it is hereby clarified that processed products such as tea (i.e. black tea, white tea etc.), processed coffee
beans or powder, pulses (dehusked or split), jaggery, processed spices, processed dry fruits, processed cashew nuts etc. fall
outside the definition of agricultural produce and therefore the exemption from GST is not available to their loading, packing,
warehousing etc. and that any clarification issued in the past to the contrary in the context of service tax or VAT / Sales Tax is
no more relevant.
Author’s Note: It is important to note that services by way of Storage or Warehousing of Cereals, Pulses, Fruits and Vegetables is exempt even
though these items are not agricultural produce. It is important to note that above exemption is only for storage and warehousing services; not
for loading, unloading and packing services.
Clarification on Custom Milling of Paddy – CBIC Circular 19/19/2018 – CGST

Issue Whether custom milling of paddy by Rice Millers for Civil Supplies Corporation is liable to GST or is exempted?
Clarification Milling of paddy is not an intermediate production process in relation to cultivation of plants. It is a process carried out after
the process of cultivation is over and paddy has been harvested. Further, processing of paddy into rice is not usually carried
out by cultivators but by rice millers. Milling of paddy into rice also changes its essential characteristics. Therefore, milling of
paddy into rice cannot be considered as an intermediate production process in relation to cultivation of plants for food, fibre
or other similar products or agricultural produce.
In view of the above, it is clarified that milling of paddy into rice is not eligible for exemption
Clarifications regarding Exemption on Storage & Warehousing Services – CBIC Circular 177/09/2022 – CGST
Issue Whether storage or warehousing of cotton in baled or ginned form is covered under EN 12/2017-CT (Rate) read with EN
9/2017-IT (Rate)?
Clarification  It is clarified that service by way of storage or warehousing of cotton in ginned and or baled is taxable w.e.f. 18.07.2022

Example 1: Agricultural Produce Example 2: Agricultural Produce
Particulars AP Particulars AP
1. Tea Leaves 1. Paddy
2. Tea 2. Rice
3. Coffee Beans 3. Wheat
4. Coffee 4. Wheat Biscuits
5. Sugar Cane 5. Potato
6. Jaggery 6. Potato Chips
7. Whole Pulses 7. Tomato
8. De-husked Pulse 8. Tomato Ketchup
Example 3: Agricultural Services Example 4: Agricultural Services

Cleaning of Apples (Not changing character of Agri. Processes on Paddy (including Cargo Handling Services &
Produce + Marketable for Primary Market) Transportation Services by Rail, GTA and Vessel)
Bulk Packing of Apples in Sack (Not changing character of Intermediate Production Process as Job-Work for
Agri. Produce + Marketable for Primary Market) converting Paddy to Rice
Retail Packing of Apples (Not changing character of Agri. Processes on Rice (including Cargo Handling Services &
Produce + Marketable for Retail Market but for Fruits) Transportation Services by Rail, GTA and Vessel)
Converting Apple to Apple Juice (Changing character of
Agri. Produce + Marketable for Retail Market)
Example 5: Agricultural Services Example 6: Agricultural Services

Rearing of all life forms of Animals (Agriculture) Transportation of Agri. Pro. & Rice by GTA, Rail & Vessel
Rearing of Horses (NOT Agriculture) Transportation of Agri. Pro. & Rice by Air
Artificial Insemination of Livestock Right to use Natural Resources to Individual Farmer
Artificial Insemination of Horses Right to use Natural Resources to Agricultural Company

(25) SERVICE BY WAY OF TRANSPORTATION OF PASSENGER WITH OR WITHOUT ACCOMPANIED BELONGINGS
(I) ROADWAYS
Stage Carriage Contract Carriage
Metered Cabs or Auto Contract Carriage

Non-AC AC Rickshaws (including other than Metered Cabs, Auto Rickshaws &
Radio Taxi
E-Rickshaws) Radio Taxi
(for example 13 seater van booked for a trip)
Exempt# Taxable
# Note: If such services by Non-AC Exempt# NOT for For Taxable
Stage Carriage OR Metered Cabs or Tourism, Conducted Tourism, Conducted
Auto Rickshaws OR Non-AC Tour, Charter or Hire Tour, Charter or Hire
Contract Carriage are supplied Non-AC AC Non-AC AC
through ECO and are notified
under Section 9(5), then such Exempt# Taxable Taxable Taxable
services are Taxable.
Note: E-Rickshw means special purpose battery powered vehicle of power not exceeding 4000 watts

(II) WATERWAYS (III) RAILWAYS
BY Public Transport in Vessel BY Metro,

BY Inland Overseas
between places located in Monorail or BY Railway
Waterways Transportation
India Tramway
Exempt Not for Predominantly Taxable Exempt Non-AC Coach AC Coach

Tourism for Tourism AND OR
Purposes Purposes Not First Class First Class

(IV) AIRWAYS
North-Eastern States Airports Regional Connectivity Scheme Airports Other Airports

Transportation of Passengers BY Air in
ECONOMY CLASS, embarking from or Services provided TO Central Government
terminating in an airport located in the by way of Transportation of Passengers BY
state of Arunachal Pradesh, Assam, Air embarking from or terminating at RCS Any Other Case
Manipur, Meghalaya, Mizoram, Nagaland, Airports against consideration in form of
Sikkim, or Tripura or at Bagdogra located Viability Gap Funding
in West Bengal
Exempt Upto 3 Yr. of date of Beyond 3 Yr. of date Taxable

commencement of of commencement
operations of RCS of operations of RCS
Airport Airport
Exempt Taxable
Example 1: North-Eastern Airports (Start / End Point) Example 2: Regional Connectivity Scheme Airports (Start / End Point)
Airline from or to Bagdogra – Economy Class Government paying Airline (Viability Gap Funding)
Airline from or to Bagdogra – Other than Economy Class Passenger paying Airline

Notes:
 Meaning of “Stage Carriage”
Stage Carriage
Means A motor vehicle constructed or adapted
 to carry more than 6 passengers excluding the driver
 for hire or reward at separate fares paid by or for individual passengers,
 either for the whole journey or for stages of journey
 Meaning of “Contract Carriage”
Contract Carriage
Means A motor vehicle which
 carries a passenger or passengers for hire or reward and
 is engaged under a contract, whether expressed or implied, for the use of such vehicle as a whole for the carriage of
passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any
person authorised by him in this behalf on a fixed or an agreed rate or sum
(a) on a time basis, whether or not with reference to any route or distance; or
(b) from one point to another,
and in either case, without stopping to pick up or set down passengers not included in the contract anywhere during
the journey, and
Includes A maxicab and a motor cab notwithstanding that separate fares are charged for its passengers
 Meaning of “Metered Cab” and “Radio Taxi”
Metered Cab Radio Taxi
Means Any contract carriage on which an automatic Means A taxi including a radio cab, by whatever name
device, of the type and make approved by the called, which
State Transport Authority, is fitted  is in two-way radio communication with a
 which indicates reading of the fare chargeable central control office and
at any moment and  is enabled for tracking using Global
 that is charged accordingly under the Positioning System (GPS) or General Packet
conditions of its permit issued under the Radio Service (GPRS);
Motor Vehicles Act, 1988 and relevant rules
Excludes Radio Taxi

Clarifications regarding Exemption on Transportation Services – CBIC Circular 177/09/2022 – CGST

Issue Whether hiring of vehicles by firms for transportation of their employees to and from work is exempt under EN 12/2017-CT
(Rate) read with EN 9/2017-IT (Rate) “transport of passengers by non-air conditioned contract carriage”
Clarification  EN 12/2017-CT (Rate) read with EN 9/2017-IT (Rate) exempts “transport of passengers, with or without accompanied
belongings, by non-air conditioned contract carriage, other than radio taxi, for transport of passengers, excluding tourism,
conducted tour, charter or hire.”
 It is clarified that ‘charter or hire’ excluded from the above exemption entry is charter or hire of a motor vehicle for a
period of time, where the renter defines how and when the vehicles will be operated, determining schedules, routes and
other operational considerations. In other words, the said exemption would apply to passenger transportation services by
non-air conditioned contract carriages falling under Heading 9964 where according to explanatory notes, transportation
takes place over pre-determined route on a pre-determined schedule.
 The exemption shall not be applicable where contract carriage is hired for a period of time, during which the contract
carriage is at the disposal of the service recipient and the recipient is thus free to decide the manner of usage (route and
schedule) subject to conditions of agreement entered into with the service provider.
Clarifications regarding Exemption on Transportation Services – CBIC Circular 177/09/2022 – CGST

Issue Applicability of GST on tickets of private ferry used for passenger transportation. These private ferries are used as means of
transport from one island to another in Andaman and Nicobar Islands.
Clarification  As per EN 12/2017-CT (Rate) read with EN 9/2017-IT (Rate) “transportation of passengers by public transport, other than
predominantly for tourism purpose, in a vessel between places located in India” is exempted.
 It is clarified that this exemption would apply to tickets purchased for transportation from one point to another
irrespective of whether the ferry is owned or operated by a private sector enterprise or by a PSU/government. It is further
clarified that, the expression ‘public transport’ used in the exemption notification only means that the transport should be
open to public. It can be privately or publicly owned.
 Only exclusion is on transportation which is predominantly for tourism, such as services which may combine with
transportation, sightseeing, food and beverages, music, accommodation such as in shikara, cruise etc.

(26) SERVICE BY WAY OF TRANSPORTATION OF GOODS
(I) ROADWAYS
(International Transportation of Goods by Road or Domestic Transportation of Goods by Road)
BY Road other than BY Courier Agency

GTA & CA BY Goods Transport Agency (Door-to-door
(i.e. Goods Transport (Transport of goods by road and transportation of time-
Operator say Bullock issuance of Consignment Note) sensitive documents,
Cart, Coolie, etc.) goods or articles)
Exempt Non-Specified Taxable

Specified Persons **
Persons *
Exempt
6 Specified Goods *** Any Other Case
Exempt Taxable #
# If Regd. GTA opts to pay FCM (@5%/@12%) - Forward Charge
# If ANY GTA NOT opts to pay FCM (@5%) - Reverse Charge

Notes:
 * Non-Specified Persons Specified Persons are the following:
(i) Unregistered Person including Unregistered (ii) The following persons who have taken ONLY TDS registration (u/s 51) and
Casual Taxable Person. have NOT taken registration for making taxable supply of goods / services:
a. Department or Establishment of the CG or SG or UT; or
b. Local Authority; or
c. Governmental Agencies,
 ** Specified Persons are the following:
(i) Factory registered under Factories Act, 1948 (iv) Co-operative Society established by or under any law
(ii) Society registered under Societies Registration (v) Partnership Firm / LLP, including Association of Person, whether registered or
Act, 1860 not
(iii) Body Corporate established by or under any law (vi) Registered Casual Taxable Person
 *** 6 Specified Goods are as follows:
(i) Agriculture Produce (iv) Newspaper or Magazines registered with the Registrar of Newspapers
(ii) Milk, Salt, Food Grains including Flours, Pulses (v) Relief Materials meant for victims of Natural or Man-Made Disasters,
and Rice Calamities, Accidents or Mishap
(iii) Organic Manure (vi) Defence or Military Equipments
Example 1: A GTA (Registered / Unregistered), who has NOT opted to pay GST under FCM, is transporting goods from its customers
Particulars GST
(i) Transportation of Plywood from Mr. A (Unregistered)
(ii) Transportation of Plywood from Government Department (Registered ONLY for TDS)
(iii) Transportation of Agricultural Produce from B Ltd. (Registered / Unregistered)
(iv) Transportation of Plywood from E Ltd. (Registered) (RCM)
(v) Transportation of Plywood from F & Co., a partnership firm (Unregistered) (Refer Note) (RCM)
Note: F & Co., a partnership firm, has to apply for compulsory registration under Section 24 for paying GST under RCM. Also, it is important
to know that GTA will not be required to take registration irrespective of its turnover as per Section 23.

Example 2: What if in Example 1, the said GTA is Registered and has opted to pay GST under FCM (whether @ 5% without ITC or @ 12% with
ITC)?
Particulars GST
(i) to (iii)
(iv) Transportation of Plywood from E Ltd. (Registered) (FCM)
(v) Transportation of Plywood from F & Co., a partnership firm (Unregistered) (Refer Note) (FCM)
Note: F & Co., a partnership firm, need NOT apply for compulsory registration under Section 24 as RCM is not applicable.

(II) WATERWAYS
International Transportation of Goods by Vessel Domestic Transportation of Goods by Vessel
Transportation of Goods by Transportation of Goods by

Vessel at the time of Import Vessel at the time of Export
from a place outside India from Customs Station of BY Inland Waterways BY Coastal Waterways
upto Customs Station of clearance in India to a place
clearance in India outside India
Indian Foreign Taxable Exempt 6 Specified Any Other

Vessel Vessel (w.e.f. 01-10-2022) Goods ** Goods
Taxable Exempt Taxable

(FCM)
Importer is
Govt. / LA /
Govt. Auth. /
Other
Individual
Cases
AND
Non-Business
Purpose
Exempt Taxable
(RCM –
Importer)

(III) RAILWAYS
International Transportation of Goods by Railways Domestic Transportation of Goods by Railways
Transportation of Goods by Railways

from India to Outside India
6 Specified Goods ** Any Other Case
OR
from Outside India to India
Taxable Exempt Taxable
(IV) AIRWAYS
International Transportation of Goods by Aircraft Domestic Transportation of Goods by Aircraft
Transportation of Goods by Transportation of Goods by

Aircraft at the time of Import Aircraft at the time of Export
Transportation of Goods by Aircraft within India
from a place outside India from Customs Station of
(including Transportation of 6 Specified Goods **)
upto Customs Station of clearance in India to a place
clearance in India outside India
Exempt Taxable Taxable

(w.e.f. 01-10-2022)

(27) GOVERNMENT SERVICES
(I) SERVICES BY GOVERNMENT / LOCAL AUTHORITY
 Services by the Department of Posts by way of

By way of any activity in By way of any activity in
Post Card, Inland Letter, Book Post and
relation to any function relation to any function
Ordinary Post (envelopes weighing less than Other
entrusted to a Panchayat entrusted to a Municipality
10 grams). Cases
under Article 243G of the under Article 243W of the
Constitution Constitution
 Residuary Services TO Non-Business Entity
Not Supply Not Supply Exempt
(B) Services in relation to

Aircraft / Vessel inside or (C) Transportation of
(A) Postal Services (other than exempted (D) Residuary Services
outside precincts of Port / Goods or Passengers
postal service) BY Government /
Airport BY Government / Local
BY Department of Post Local Authority
BY Government / Local Authority
TO Any Person TO Business Entities
Authority TO Any Person
TO Any Person
Taxable Taxable Refer Transportation of Refer Next Page

(Forward Charge) (Forward Charge) Goods and Transportation
of Passengers
(Forward Charge)

ANY SERVICES BY GOVERNMENT / LOCAL AUTHORITY TO BUSINESS ENTITIES
Exemption based on Govt. to Govt. Renting of Immovable Taxable

 Any Services BY Government / Local Authority TO Another Government / Property to Unregistered (Forward
Local Authority Exempt Person Charge)
(Exemption is ONLY for services covered under D & NOT for services
covered under A, B & C) Renting of Immovable Taxable
Property to Registered (Reverse
Exemption based on Amount Person Charge)
 Services provided BY Government or a Local Authority TO a Business
Entity with an Aggregate Turnover in the Preceding FY upto such amount Any Other Services
as makes it eligible for exemption from registration under the CGST Act other Renting of Taxable
(Exemption is ONLY for services covered under D other than Renting of Immovable Property (Forward
Immovable Property and NOT for services covered under A, B, C and TO Business Entity in Charge)
Exempt Non-Taxable Territory
Renting of Immovable Property)
 Services provided BY Government or a Local Authority where the Gross Any Other Services
Amount Charged does not exceed Rs.5,000/- per Contract for a Normal other Renting of Taxable
Service OR Rs.5,000/- per FY for Continuous Supply of Service Immovable Property (Reverse
(Exemption is ONLY for services covered under D and NOT for services TO Business Entity in Charge)
covered under A, B & C) Taxable Territory
Exemption based on Nature of Services
 Services by way of issuance of Passport, Visa, Driving Licence, Birth
Certificate or Death Certificate
 Services by way of tolerating Non-Performance of a Contract for which Exempt
Consideration in the form of Fines / Liquidated Damages is payable to
Government or Local Authority under such contract
 Services by way of granting National Permit TO a Goods Carriage to

operate through-out India / contiguous States.
 Services by way of Registration required under any law
 Services by way of Testing, Calibration, Safety Check or Certification
relating to Protection or Safety of Workers, Consumers or Public at large,
including fire license, required under any law
 Services by way of deputing officers after office hours or on holidays for
Inspection or Container Stuffing or such other duties in relation to Import
Export Cargo on payment of Merchant Overtime Charges (MOT)
 Services by an Old Age Home run BY CG or SG or Section 12AA / Section
12AB Entity to its residents (aged 60 years or more) against consideration
upto Rs.25,000 / Month / Member, provided that the consideration charged
is inclusive of charges for Boarding, Lodging and Maintenance
 Services provided BY Rehabilitation Professionals recognised under
Rehabilitation Council of India Act, 1992 by way of rehabilitation, therapy,
counselling & such other activity at Medical Establishments, Educational
Institutions, Rehabilitation Centers established BY CG, SG, UT or Section
12AA / Section 12AB Entity
 Services supplied BY CG or SG or UT TO their Undertakings or Public
Sector Undertakings (PSUs) by way of guaranteeing the loans taken by
them from the Banking Companies and Financial Institutions
 Services BY CG by way of grant of License / Lease to explore or mine
Petroleum Crude / Natural Gas or both where the consideration paid to CG
in the form of CG’s share of profit petroleum as defined in contract entered
into by CG (Refer Note)
 Services supplied BY a SG TO Excess Royalty Collection Contractor
(ERCC) by way of assigning the right to collect royalty on behalf of the
State Government on the mineral dispatched by the mining lease holders.
Provided that at the end of the contract period, ERCC shall submit an
account to the SG and certify that the amount of GST deposited by mining
lease holders on royalty is more than the GST exempted on the service

provided by SG to the ERCC of assignment of right to collect royalty.
Where such amount of GST paid by mining lease holders is less than the
amount of GST exempted, the exemption shall be restricted to such amount
as is equal to the amount of GST paid by the mining lease holders and the
ERCC shall pay the difference between GST exempted on the service
provided by SG to the ERCC of assignment of right to collect royalty and
GST paid by the mining lease holders on royalty.
 Services by way of Assignment of Right to Use Natural Resources TO an
Individual Farmer for the purposes of Agriculture
 Services by way of Assignment of Right to Use any Natural Resource
where such Right to Use was assigned by the Government or the Local
Authority before the 1st April, 2016.
 Services by way of allowing a Business Entity to operate as a Telecom
Service Provider or use Radiofrequency Spectrum during the period before
1st April 2016 on payment of Licence Fee or Spectrum User Charges
Explanation: The provisions of RCM notification, in so far as they apply to the Central Government and State Governments, shall also apply to
the Parliament, State Legislatures, Court and Tribunal.
Notes:
Clarification in respect of Exemption to Guaranteeing of Loans by Government to their Undertaking or PSU – CBIC Circular 154/10/2021 –
CGST
Clarification  Serial No. 34A of EN 12/2017-CT (Rate) exempts “Services supplied by Central Government, State Government, Union
territory to their undertakings or Public Sector Undertakings (PSUs) by way of guaranteeing the loans taken by such
undertakings or PSUs from the banking companies and financial institutions.”
 Accordingly, as recommended by the Council, it is re-iterated that guaranteeing of loans by Central or State Government
for their undertaking or PSU is specifically exempt under said Serial No. 34A.
Clarifications regarding applicability of GST on Certain Services – CBIC Circular 190/02/2023 – CGST
Issue Whether GST is payable on accommodation services supplied by Air Force Mess to its personnel.
Clarification  All services supplied BY Central Government, State Government, Union Territory or Local Authority to any person other

than business entities (barring a few specified services such as services of postal department, transportation of goods and
passengers etc.) are exempt from GST vide EN 12/2017–CT(Rate) read with EN 9/2017–IT(Rate).
 Therefore, as recommended by the GST Council, it is hereby clarified that accommodation services provided by Air Force
Mess and other similar messes, such as, Army mess, Navy mess, Paramilitary and Police forces mess to their personnel or
any person other than a business entity are covered by GST vide EN 12/2017–CT(Rate) read with EN 9/2017–IT(Rate).
provided the services supplied by such messes qualify to be considered as services supplied by Central Government, State
Government, Union Territory or Local Authority.
Clarification on taxability of Cost Petroleum – CBIC Circular 32/06/2018 – CGST

Clarification As per the Production Sharing Contract (PSC) between the Government and the oil exploration & production contractors, in
case of a commercial discovery of petroleum, the contractors are entitled to recover from the sale proceeds all expenses
incurred in exploration, development, production and payment of royalty. Portion of the value of petroleum which the
contractor is entitled to take in a year for recovery of these contract costs, is called “Cost Petroleum”.
The relationship of the oil exploration and production contractors with the Government is not that of partners but that of
licensor/lessor and licensee/lessee in terms of the Petroleum and Natural Gas Rules, 1959. Having acquired the right to
explore, exploit and sell petroleum in lieu of royalty and a share in profit petroleum, contractors carry out the exploration
and production of petroleum for themselves and not as a service to the Government. Para 8.1 of the Model Production Sharing
Contract (MPSC) states that subject to the provisions of the PSC, the Contractor shall have exclusive right to carry out
Petroleum Operations to recover costs and expenses as provided in this Contract. The oil exploration and production
contractors conduct all petroleum operations at their sole risk, cost and expense. Hence, cost petroleum is not a consideration
for service to GOI and thus not taxable per se.
However, cost petroleum may be an indication of the value of mining or exploration services provided by operating member
to the joint venture, in a situation where the operating member is found to be supplying service to the oil exploration and
production joint venture.

Supplier = CG / SG / UT / LA
Services = Panchayat / Municipal Functions + Post, Port / Airport & Transport Services
Services Exempt / Taxable
(I) Panchayat Functions (Article 243G) OR Municipality Functions (Article 243 W) OR Not Supply
License Fees for grant of Alcoholic Liquor License
(II) Any Other Functions Supply
(1) Postal Services
(a) Services by the Department of Posts by way of Post Card, Inland Letter, Book Exempt
Post and Ordinary Post (envelopes weighing less than 10 grams)
(b) Other Postal Services TO Any Person Taxable (Forward Charge)
(2) Port / Airport Services – Services in relation to Aircraft / Vessel inside or outside Taxable (Forward Charge)
precincts of Port / Airport TO Any Person (Government / Business Entity / Non-
Business Entity)
(3) Transport Services – Transportation of Good and Transportation of Passengers TO
Any Person (Government / Business Entity / Non-Business Entity)
(a) Exempt Category Exempt
(b) Taxable Category Taxable (Forward Charge)
(4) Residuary Services – Any Other Services other than above 3 Services
(a) TO Non-Business Entity Exempt
(b) TO Business Entity Refer Next Chart
Supplier = CG / SG / UT / LA
Residuary Services = Any Services – Panchayat / Municipal Functions – Post, Port / Airport & Transport Services
Recipient Exempt / Taxable
(I) Service supplied TO Non-Business Entity Exempt
(II) Service supplied TO Business Entity
(1) BE = CG / SG / UT / LA Exempt (Even Renting of Imm. Pro. is exempt)
(2) Any Other BE
(a) BE having Previous Year’s TO upto eligible limit of registration under CGST Act Exempt (However, Renting of Imm. Pro. is
NOT exempt)

(b) BE having Previous Year’s TO > eligible limit of registration under CGST Act
a. Consideration is upto Rs.5,000 / Contract Exempt
(In case of continuous supply of services, Rs.5,000 / Year shall be considered)
b. Consideration is more than Rs.5,000
 Passport, Visa, Driving License, Birth Certificate or Death Certificate Exempt
 Tolerating Non-Performance of a Contract (Fines / Liquidated Damages) Exempt
 Granting National Permit TO a Goods Carriage to operate through-out Exempt
India / contiguous States
 Statutory Functions of Registration and Testing, Calibration, Safety Check Exempt
or Certification
 Deputation of officers after office hours or on holidays (for inspection or Exempt
container stuffing, etc.) on payment of Merchant Overtime Charges (MOT)
 Old Age Home BY CG or SG to >= 60 years residents upto consideration of Exempt
Rs.25,000 / Month / Member (including Boarding, Lodging & Maintenance)
 Services provided BY Rehabilitation Professionals recognised under the Exempt
RCI Act, 1992 by way of rehabilitation, therapy, counselling etc. at Medical
Establishments, Educational Institutions, Rehabilitation Centers
established BY CG, SG or UT.
 Services supplied BY CG, SG or UT TO their Undertakings or PSUs by way Exempt
of guaranteeing loans taken by PSUs from Banking Co. & Fin. Institutions.
 Services supplied BY a SG TO Excess Royalty Collection Contractor by Exempt
way of assigning the right to collect royalty on behalf of the SG on the
mineral dispatched by the mining lease holders
 Services BY CG by way of grant of License / Lease to explore or mine Exempt
Petroleum Crude / Natural Gas (CG’s share of profit petroleum)
 Right to Use Natural Resources TO an Individual Farmer for Agriculture Exempt
 Any Other Service Taxable
 Renting of Immovable Property to Unregistered Recipient  Forward Charge
 Renting of Immovable Property to Registered Recipient  Reverse Charge
 Any Other Services to Recipient in Non-Taxable Territory  Forward Charge
 Any Other Services to Recipient in Taxable Territory  Reverse Charge

Example 1: Govt. Services (Panchayat, Municipality, Liquor License Example 2: Govt. Services (Port, Airport and Transport)
and Postal) Particulars GST
Particulars GST Port Fees / Airport Fees / Demurrage Charges /
Panchayat Services and Municipality Services Repair & Maintenance Charges from Aircraft and (FCM)
License Fees for grant of Alcoholic Liquor License Vessels (even if upto Rs.5,000)
Services by the Department of Posts by way of Post Transportation Services of Goods or Passenger
Card, Inland Letter, Book Post and Ordinary Post (Exempted Category)
(envelopes weighing less than 10 grams) Transportation Services of Goods or Passenger
(FCM)
Any Other Postal Services (other than above) (FCM) (Taxable Category) (even if upto Rs.5,000)
Example 3: Govt. Services TO Non-Business Entity Example 4: Govt. Services TO Govt.

Services to Mr. A (a Student) Services to Maharashtra Government
Example 5: Govt. Services TO Business Entities – Other than Renting Example 6: Govt. Services TO Business Entities – Renting of
of Immovable Property Immovable Property
(i) TO A Ltd., unregistered company - Rs.8,000 (i) TO A Ltd., unregistered company - Rs.8,000
(FCM)
(Previous Yr. Turnover is Rs.9 lakhs) (Previous Yr. Turnover is Rs.9 lakhs)
(ii) TO BCD & Co., registered partnership firm - (ii) TO BCD & Co., registered partnership firm -
Rs.4,000 (Previous Yr. Turnover is Rs.50 lakhs) Rs.4,000 (Previous Yr. Turnover is Rs.50 lakhs)
(iii) TO E & Co., registered proprietorship concern - (iii) TO E & Co., registered proprietorship concern -
(RCM) (RCM)
Rs.10,000 (Previous Yr. Turnover is Rs.1.5 crores) Rs.10,000 (Previous Yr. Turnover is Rs.1.5 crores)
Note: It is assumed that above rental amount is per annum.
Example 7: Services supplied BY a SG TO Excess Royalty Collection Example 8: Services supplied BY a SG TO Excess Royalty Collection
Contractor by way of assigning the right to collect royalty on behalf of Contractor by way of assigning the right to collect royalty on behalf of
the SG on the mineral dispatched by the mining lease holders the SG on the mineral dispatched by the mining lease holders
Particulars Value GST Particulars Value GST

Service of assigning right to collect Service of assigning right to collect 1 Cr
1.25 Cr
royalty BY SG TO ERCC – Rs.1.25 Crore royalty BY SG TO ERCC – Rs.1.25 Crore 0.25 Cr (RCM)
Royalty collected BY ERCC from 3rd Royalty collected BY ERCC from 3 rd
1.5 Cr (FCM) 1 Cr (FCM)
Party – Rs.1.5 Crore Party – Rs.1 Crore

(II) SERVICES BY GOVERNMENTAL AUTHORITY
By way of any activity in

relation to any function
By way of any activity in
entrusted to a Municipality Any services other than specified cases
relation to any function
under Article 243W of the
entrusted to a Panchayat
Constitution (i.e. change of
under Article 243G of the
land use, commercial
Constitution
building approval, utility Taxable
services)
Exempt Exempt
(III) SERVICES BY GOVERNMENT ENTITY
Supply of service BY a Government Entity TO Central Government, State Government, Union Territory, Local Authority or
Any Other
any person specified by Central Government, State Government, Union Territory or Local Authority against consideration
Service
received from Central Government, State Government, Union territory or local authority, in the form of grants
Exempt Taxable

(IV) SERVICES TO GOVERNMENT / LOCAL AUTHORITY / GOVERNMENTAL AUTHORITY / GOVERNMENT ENTITY
 Pure Services (excluding Works Contract Service or other Composite Supplies Any services other than
involving supply of any goods) provided TO Government or Local Authority or specified cases
Governmental Authority or Government Entity by way of any activity in relation to Exempt
any function entrusted to a Panchayat under Article 243G or in relation to any Taxable
function entrusted to a Municipality under Article 243W of Constitution
 Composite Supply of goods and services in which the value of supply of goods
constitutes not more than 25% of the value of the said composite supply provided
TO Government or Local Authority or Governmental Authority or Government
Exempt
Entity by way of any activity in relation to any function entrusted to a Panchayat
under Article 243G or in relation to any function entrusted to a Municipality under
Article 243W of Constitution
 Services provided BY an Arbitral Tribunal TO Government or Local Authority or
Governmental Authority or Government Entity
 Services provided BY a Partnership Firm of Advocates or BY an Individual
Advocate other than a Senior Advocate by way of legal services TO Government or Exempt
Local Authority or Governmental Authority or Government Entity
 Services provided BY a Senior Advocate by way of legal services TO Government
or Local Authority or Governmental Authority or Government Entity
 Services BY service provider located in Non-Taxable Territory TO Government or
Local Authority or Governmental Authority or an Individual in relation to any
purpose other than commerce, industry or any other business or profession
Exempt
(However, this exemption is NOT applicable to Online Information or Database
Access or Retrieval Services)

 Services provided TO Government under any Insurance Scheme for which Total
Exempt
Premium is paid by Government (Refer Note)
 Services provided TO Government administration under any Training Programme
for which 75% or more of the Total Expenditure is borne by Government Exempt
administration
 Services provided by way of Transportation of Goods BY Goods Transportation
Agency TO the following persons who have taken ONLY TDS registration (u/s 51)
and have NOT taken registration for making taxable supply of goods / services:
Exempt
a. Department or Establishment of the CG or SG or UT; or
b. Local Authority; or
c. Governmental Agencies,
 Services provided TO Central Government by way of Transportation of Passengers
BY Air embarking from or terminating at RCS Airports against consideration in
Exempt
form of Viability Gap Funding (This exemption is ONLY upto 3 Yrs. of
commencement of operations of RCS Airport)
 Service by way of giving on hire of a Motor Vehicle meant to carry more than 12
passengers TO a State Transport Undertaking
Exempt
 Services by way of giving on hire of an Electrically Operated Vehicle meant to carry
more than 12 passengers TO a Local Authority
 Service provided BY Fair Price Shops TO Central Government or State
Governments or Union Territories by way of sale of food grains, kerosene, sugar,
Exempt
edible oil, etc. under Public Distribution System (PDS) against consideration in the
form of commission or margin

Notes:
 Meaning of “Governmental Authority” and “Government Entity”
Governmental Authority Government Entity
Means An authority or a board or any other body, Means An authority or a board or any other body including
(i) set up by an Act of Parliament or a State a society, trust, corporation,
Legislature OR (i) set up by an Act of Parliament or a State
(ii) established by any Government, with 90% or Legislature OR
more participation by way of equity or control, (ii) established by any Government, with 90% or
to carry out any function entrusted to a more participation by way of equity or control,
Municipality under Article 243 W OR to a to carry out a function entrusted by Central Govt.,
Panchayat under Article 243 G of Constitution. State Govt., Union Territory or Local Authority.
 Meaning of “Local Authority”

Local Authority
Means (a) a “Panchayat” as defined in Article 243(d) of the Constitution;
(b) a “Municipality” as defined in Article 243P(e) of the Constitution;
(c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by
the Central Government or any State Government with the control or management of a municipal or local fund;
(d) a Cantonment Board as defined in Section 3 of the Cantonments Act, 2006;
(e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution;
(f) a Development Board constituted under Article 371 and Article 371J of the Constitution; or
(g) a Regional Council constituted under Article 371A of the Constitution;
Notes: Article 371 of the Constitution grants special status to Maharashtra and Gujarat. Under this article, the President is empowered to
establish a separate Board to ensure equitable distribution of funds in the State’s budget to meet the developmental needs of the region.
Article 371J of the Constitution grants special status to 6 backward districts of Karnataka-Hyderabad region. Under this article, the President
is empowered to establish a separate Board to ensure equitable distribution of funds in the State’s budget to meet the developmental needs of
the region.

Clarification in respect of GST on Milling of Wheat into Flour or Paddy into Rice for distribution by State Governments under PDS –
CBIC Circular 153/09/2021 – CGST
Issue Whether composite supply of service by way of milling of wheat into wheat flour, alongwith fortification, by any person to a
SG for distribution of such wheat flour under Public Distribution System is eligible for exemption under Serial No. 3A of EN
12/2017-CT (Rate).
Clarification  Serial No. 3A of EN 12/2017-CT (Rate) exempts “composite supply of goods and services in which the value of supply of
goods constitutes not more than 25% of the value of the said composite supply provided to the Central Government, State
Government or Union Territory or Local Authority or a Governmental Authority or a Government Entity 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”.
 Public Distribution specifically figures at Entry 28 of the 11th Schedule to the Constitution, which lists the activities that
may be entrusted to a Panchayat under Article 243G of the Constitution. Hence, said Serial No. 3A would apply to
composite supply of milling of wheat and fortification thereof by miller, or of paddy into rice, provided that value of
goods supplied in such composite supply goods used (for fortification, packing material etc) does not exceed 25% of the
value of composite supply. It is a matter of fact as to whether the value of goods in such composite supply is up to 25% and
requires ascertainment on case-to-case basis.
Clarification on General Insurance Policies provided by a State Government to employees of the State Government / Police Personnel,
Employees of Electricity Department or Students of Colleges / Private Schools etc. – CBIC Circular 16/16/2018 – CGST
Issue Whether GST is leviable on general insurance policies provided by a State Government to employees of the State Government/
Police personnel, employees of Electricity Department or students of colleges/private schools etc.:
(a) where premium is paid by State Government and
(b) where premium is paid by employees, students etc.
Clarification It is hereby clarified that 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 are exempt
from GST under Entry 40 of EN 12/2017-CT (Rate).
Further, services provided by State Government by way of general insurance (managed by Government) to employees of the
State Government / Police Personnel, Employees of Electricity Department or students are exempt vide Entry 6 of EN 12/2017-
CT (Rate) which exempts services by Central Government, State Government, Union Territory or Local Authority to
individuals.

Clarifications regarding Exemption on Government Services – CBIC Circular 177/09/2022 – CGST

Issue Applicability of GST on sanitation and conservancy services supplied to Army and other Central and State Government
departments
Clarification  The exemption under EN 12/2017-CT (Rate) read with EN 9/2017-IT (Rate) has been given on pure services & composite
supplies procured by Central Government, State Government, Union Territories or local authorities for performing
functions listed in the 11th and 12th Schedule of the constitution.
 It is clarified that if such services are procured by Indian Army or any other Government Ministry / Department which
does not perform any functions listed in the 11th and 12th Schedule, in the manner as a local authority does for the general
public, the same are not eligible for exemption.

(28) TOUR OPERATOR SERVICES
TO Foreign Tourist TO Foreign Tourist TO Foreign Tourist

Wholly outside India Partly outside India and Partly in India Wholly in India
Services provided BY a Tour operator service, which is performed partly in India and partly outside Services provided BY a
Tour Operator TO a India, supplied BY a Tour Operator TO a Foreign Tourist, to the extent of the Tour Operator TO a
Foreign Tourist in value of the tour operator service which is performed outside India: Foreign Tourist in
relation to a Tour Provided that value of the tour operator service performed outside India shall relation to a Tour
conducted Wholly be such proportion of the total consideration charged for the entire tour which conducted Wholly in
Outside India is equal to the proportion which the number of days for which the tour is India
performed outside India has to the total number of days comprising the tour,
or 50% of the total consideration charged for the entire tour, whichever is less: Services provided BY a
Provided further that in making the above calculations, any duration of time Tour Operator TO a
equal to or exceeding 12 hours shall be considered as one full day and any Indian Tourist in relation
duration of time less than 12 hours shall be taken as half a day. to a Tour conducted in or
(Refer Explanation and Illustrations) outside India
Exempt Partly Exempt and Partly Taxable Taxable

Explanation: “Foreign Tourist” means a person not normally resident in India, who enters India for a stay of not more than 6 months for
legitimate non-immigrant purposes
Illustrations: A tour operator provides a tour operator service to a foreign tourist as follows: -
(a) 3 days in India, 2 days in Nepal; Consideration Charged for the entire tour: Rs.1, 00, 000/- Exemption: Rs.40,000/- (= Rs.1,00, 000/- x 2/5) or,
Rs.50,000/- (= 50% of Rs.1,00, 000/-) whichever is less, i.e., Rs.40,000/- (i.e., Taxable value: Rs.60,000/-);
(b) 2 days in India, 3 nights in Nepal; Consideration Charged for the entire tour: Rs.1,00, 000/- Exemption: Rs.60,000 (= Rs.1, 00, 000/- x 3/5) or,
Rs.50,000/- (= 50% of Rs.1,00,000/-) whichever is less, i.e., Rs.50,000/- (i.e., Taxable value: Rs.50,000/-);
(c) 2.5 days in India, 3 days in Nepal; Consideration charged for the entire tour: Rs.1,00,000/- Exemption: Rs.54,545 (= Rs.1,00,000/- x 3/5.5) or,
Rs.50,000/- (= 50% of Rs.1,00,000/-) whichever is less, i.e., Rs.50, 000/- (i.e., Taxable value: Rs.50,000/-).

(29) RESIDUARY SERVICES
Services by way of collecting or providing News BY an Independent Journalist / Press Trust of Any services other
Exempt
India or United News of India than specified cases
Services by way of Public Conveniences such as provision of facilities of
Exempt Taxable
Bathroom/Washrooms/Lavatories/Urinal/Toilets
Services BY an organiser TO any person in respect of a Business Exhibition held outside India Exempt
Services by way of Transfer of a Going Concern, as a Whole or an Independent Part thereof Exempt
Services by way of providing information under the Right to Information Act, 2005 Exempt
Service BY Specified Organizations given below:
 Employees’ Provident Fund Organisation (EPFO)
 Coal Mines Provident Fund Organisation (CMPFO)
 National Centre for Cold Chain Development (NCCCD)
Exempt
 National Pension System (NPS) Trust TO its members against consideration in the form of
Administrative Fee
 Satellite launch services supplied BY Indian Space Research Organisation, Antrix
Corporation Limited or New Space India Limited.
(30) OTHER EXEMPTIONS
SEZ Related Exemptions

Notification No. Exemption Remarks
EN 18/2017-IT (Rate) Exemption to Import of GOODS OR SERVICES BY SEZ Domestic procurement of Goods or Services BY SEZ
[Import of Services] Unit or SEZ Developer Unit or SEZ Developer is already zero-rated (i.e. tax
EN 64/2017-Customs free) by virtue of Section 16 of IGST Act, 2017
[Import of Goods]


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Chapter 5A “Vidhya Peeth” Exemptions & RCM

Conceptual Learning! Study! Revise!! Krack!!!

Exemption on Essential Goods Exemption on Essential Services

Unbranded Atta / Maida / Eggs, Exemption from CGST +

Vishal Jain Page 5A.1 Praveen Jain

Toll Charges Other Charges OR Toll Collection Charges

Collection Charges or Service Charges paid to any Toll Collecting

Vishal Jain Page 5A.2 Praveen Jain

Vishal Jain Page 5A.3 Praveen Jain

BY Government Authority or Transmission Licensee BY Shopping Mall

Transmission or Construction, Erection, (a) Application fee for releasing connection of

Exempt Exempt Taxable Taxable

Vishal Jain Page 5A.4 Praveen Jain

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BY Reserve Bank of India TO Reserve Bank of India

Services BY person outside India TO RBI Services BY person in India TO RBI

Taxable Taxable Taxable

Vishal Jain Page 5A.6 Praveen Jain

Extending Loans, Advances and Deposits Money Changing Services

Interest in Credit Card Bank 1 & Bank 2

Exempt Taxable Exempt Taxable

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Services BY an Acquiring Bank TO any

Exempt Exempt Taxable

Example 1: Banking Services Example 2: Money Changing Services

Vishal Jain Page 5A.8 Praveen Jain

Exempt Taxable Taxable Taxable Taxable

Reverse Forward Reverse Forward Reverse Forward

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Services Services BY an Services

Exempt Exempt Exempt Exempt Taxable Taxable

BY Agent BY Agent SLS BY

RCM FCM RCM FCM

Vishal Jain Page 5A.10 Praveen Jain

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(I) SERVICES BY INSURANCE COMPANIES

Exempt Exempt Exempt Taxable

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Services BY Business Facilitator / Business Correspondent TO a

Reverse Charge Forward Charge

Vishal Jain Page 5A.13 Praveen Jain

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Consideration is more Consideration is less than Exempt

Taxable Exempt Exempt Taxable

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(I) PRIMARY SPORTS SERVICES

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Sports Services BY Unincorporate Club / BY Section 12AA or

Mem. Fees Mem. Fees > BY Chari. Consideration is Consideration Taxable

Exempt Taxable Exempt Taxable Exempt Taxable

Vishal Jain Page 5A.17 Praveen Jain

(III) OTHER SPORTS SERVICES RELATED TO FOOTBALL EVENTS IN INDIA

Services provided BY and TO Services provided BY and TO Asian

Exempt Exempt Exempt Exempt

Vishal Jain Page 5A.18 Praveen Jain

Services by way of Sponsorship of sporting events organised,

BY Any Person BY Any Person