Exemptions from GST – CA Inter Tax Question Bank

Exemptions from GST – CA Inter Tax Question Bank is designed strictly as per the latest syllabus and exam pattern.

Exemptions from GST – CA Inter Tax Question Bank

Question 1.
Decide with reason whether the following independent services are exempt under CGST Act, 2017 :
(i) M/s Fast Trans, a goods transport agency, transported relief materials meant for victims of Kerala floods being a natural disaster, by road from Delhi to Ernakulam, for a Limited Co.
(ii) Keyan Enterprises, an event organizer, provided services to Breathing Wall Ltd. by way of organizing business exhibition at Pragati Maidan in New Delhi as part of Make in India initiative. (Nov 2018, 3 marks)
Answer:
(i) Services provided by a goods transport agency, by way of transport in a goods carriage of, inter alia, relief materials meant for victims of inter alia natural or man- made disasters are exempt from GST. Therefore, services provided by M/s Fast Trans will be exempt from GST.

(ii) Services provided by an organiser to any person in respect of a business exhibition held outside India is exempt from GST. Since in the given case, the exhibition is organized in India, the services of organization of event by Keyan Enterprises will not be exempt from GST.

Question 2.
Examine whether GST is exempted on the following independent supply of services:
(i) Teja & Co. a tour operator, provides services to a foreign tourist for tour conducted to Jammu Kashmir and receives a sum of ₹ 3,00,000.
(ii) Ms. Poorva acts as a Team Manager for Indian Sports League (ISL), a recognised sports body, for a Tennis tournament organised by Multi brand retail company and received a remuneration of ₹ 2,00,000. (May 2018, 3 marks)
Answer:
(i) Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India is exempted. In the given case since it is conducted in Jammu and Kashmir (as GST applicable to whole of India including J&K) hence ₹ 3,00,000 taxable.

(ii) Services provided to a recognised sports body by an individual as a team manager for participation in a sporting event organised by a recognised sports body is exempt from GST. In the given case since the tournament is organised by Multi Brand Retail company not a recognized sports body, hence it is not exempt and chargeable to tax. So remuneration of ₹ 2,00,000 is taxable.

Question 3.
Decide with reason whether the following independent services are exempt under CGST Act, 2017:
(i) Gokul Residents’ Welfare Association received ₹ 9,000 per month as contribution from each member for sourcing of goods and services from third persons for common use of its members.
(ii) Mr. Vikalp, a performing artist, has received ₹ 1,58,000 from
performance of Classical Dance and ₹ 90,000 from acting in TV Serial during the month of June 2020. (May 2019, 4 marks)
Answer:
(i) Service by an unincorporated body or a registered non-profit entity, to its own members by way of share of contribution up to an amount of ₹ 7,500 per month per member for sourcing of goods/services from a third person for the common use of its members in a housing society or residential complex, is exempt. In the given case, monthly contribution per month per member received by Gokul Residents’ Welfare Association exceeds ₹ 7,500. Therefore, exemption will be available up to ₹ 7,500 and GST would be payable on the amount in excess of ₹ 7,500 (viz. ₹ 1,500 in this case).

(ii) Services by an artist by way of a performance in folk or classical art forms of music, dance, or theatre, if the consideration charged for such performance is not more than ₹ 1,50,000 are exempt from GST.
In the given case, since the consideration received by the performing artist – Mr. Vikalp for performance of classical dance is more than ₹ 1,50,000, said services are not exempt. Further, consideration received for acting in TV serial is also not exempt since said performance is not in folk/classical art forms of theatre.

Multiple Choice Question

Question 1.
Which one of the following is true?
(a) Entire income of any trust is exempted from GST
(b) Entire income of a registered trust is exempted from GST
(c) Incomes from specified/defined charitable activities of a trust are exempted from GST
(d) Incomes from specified/defined charitable activities of a registered trust (u/s 12AA of Income Tax Act)are exempted from GST
Answer:
(d) Incomes from specified/defined charitable activities of a registered trust (u/s 12AA of Income Tax Act)are exempted from GST

Question 2.
Select the correct statement?
(a) Transfer of a going concern wholly is not exempt from GST
(b) Transfer of a going concern is partly exempt from GST
(c) Transfer partly as going concern is exempted from GST
(d) Transfer of a going concern is exempt from GST
Answer:
(d) Transfer of a going concern is exempt from GST

Question 3.
Service by whom, by way of any activity in relation to any function entrusted to a municipality under Article 243 W of the Constitution, is exempted?
(a) Central Government or State Government or Union territory or Local authority
(b) Governmental authority
(c) Municipality under Article 243 W of the Constitution
(d) All of above
Answer:
(d) All of above

Question 4.
Which is a wrong statement?
(a) All services of Department of Post are exempted
(b) All services by State/Central Governments/local authorities in relation to an aircraft or a vessel in a Port or an Airport are exempted
(c) All services by State/Central Governments/local authorities in relation to transport of passengers are exempted
(d) All the above mentioned
Answer:
(d) All the above mentioned

Question 5.
Services to a single residential unit is, exempted if:
(a) It is pure labour service only
(b) It is works contract only
(c) It is a part of residential complex only
(d) It is on ground floor without further super structure
Answer:
(a) It is pure labour service only

Question 6.
Which exemption option is right from the following?
(a) For letting out any immovable property
(b) For letting out any residential dwelling for use as residence
(c) For letting out any residential property irrespective of its use
(d) For none of the above
Answer:
(b) For letting out any residential dwelling for use as residence

Question 7.
Services by a hotel, inn, guest house, club or campsite are exempted for residential / lodging purposes –
(a) If the actual tariff for a unit of accommodation is below ₹ 10,000
(b) If the actual tariff for a unit of accommodation is below ₹ 1,000
(c) If the actual tariff for a unit of accommodation is less than or equal to ₹ 1,000
(d) If the actual tariff for a unit of accommodation is above ₹ 1,000
Answer:
(c) If the actual tariff for a unit of accommodation is less than or equal to ₹ 1,000

Question 8.
Transportation of passengers exempted if –
(a) It is by air-conditioned stage carriage
(b) It is by air-conditioned contract carriage
(c) It is by non-air-conditioned stage carriage for tourism, charter or hire
(d) None of the above
Answer:
(d) None of the above

Question 9.
Transportation of passengers is exempted –
(a) In an air-conditioned railway coach
(b) In a vessel for public tourism purpose between places in India
(c) In a metered cab/auto rickshaw / e rickshaw
(d) In all the above mentioned
Answer:
(c) In a metered cab/auto rickshaw / e rickshaw

Question 10.
Transportation of goods is not exempted if it is –
(a) By a goods transport agency / courier agency
(b) By inland waterways
(c) By an aircraft from a place outside India upto the customs station of clearance in India
(d) By all the above mentioned
Answer
(a) By a goods transport agency / courier agency

Exemptions from GST Notes

Power to Grant Exemption from Tax [Section 11 of the CGST Act/ Section 6 of IGST Act]

Section 11	Power to grant exemption from tax
Sub-section	Particulars
(1)	Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification
(2)	Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by special order in each case, under circumstances of an exceptional nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax is leviable.
(3)	The Government may, if it considers necessary or expedient so to do for the purpose of clarifying the scope of applicability of any notification issued under sub-section (1) or order issued under sub-section (2), insert an explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification under sub section (1) or order under subsection (2), and every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be.
Explanation	For the purposes of this section, where an exemption in respect of any goods or services or both from the whole or part of the tax leviable thereon has been granted absolutely, the registered person supplying such goods or services or both shall not collect the tax, in excess of the effective rate, on such supply of goods or services or both

It is hereby clarified that the explanation so inserted for a particular entry in the notification, is effective from the inception of the entry in notification and not from the date from which the notification (that inserted said explanation) becomes effective.

List of Services Exempt from Tax

1. Specific Services Exempt from CGST/IGST
Notification No. 12/2017 CT (R) dated 28.06.2017 (hereafter referred to as “the Notification”) unless otherwise specified, has exempted the various services wholly from CGST/IGST respectively. Each of the entries of the exemption notification have been discussed below:

1. Charitable and religious activity related services

Entry No. 1 :
Description of services
Services by an entity registered under Section 12AA of the Income-tax Act, 1961 by way of charitable activities.

Entry No. 13 :
Description of services
Services by a person by way of-
(a) conduct of any religious ceremony;
(b) 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 of the Income-tax Act, 1961 or a trust or an institution registered under section 10(23C)(v) of the Income-tax Act or a body or an authority covered under section 10(23BBA) of the said Income-tax Act.

However, nothing contained in entry (b) of this exemption shall apply to-

renting of rooms where charges are more than ₹ 1,000 per day;
renting of premises, community halls, kalyanmandapam or open area, and the like where charges are ₹ 10,000 or more per day;
renting of shops or other spaces for business or commerce where charges are ₹ 10,000 or more per month.

Entry No. 60 :
Description of services
Services by a specified organisation in respect of a religious pilgrimage facilitated by the Government of India, under bilateral arrangement.

Entry No. 80 :
Description of services
Services by way of training or coaching in recreational activities relating to-
(a) arts or culture, or
(b) sports by charitable entities registered under section 12AA of the Income-tax Act.

2. Agricultural related services

Entry No. 24
Description of services
Services by way of loading, unloading packing, storage or warehousing of rice.

Entry No. 24A
Description of services
Services by way of warehousing of minor forest produce.

Entry No. 24B
Description of services
Services by way of storage/warehousing 0f cereals, pulses, fruits, nuts and vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee and tea.

Entry No. 53A
Description of services
Services by way of fumigation in a warehouse of agricultural produce.

Entry No. 54
Description of services
Services relating to 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 or agricultural produce by way of—

(a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing:
(b) supply of farm labour;
(c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning. trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
(d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;
(e) loading, unloading, packing, storage or warehousing of agricultural produce,
(f) agricultural extension services;
(g) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce.
(h) services by way of fumigation in a warehouse of agricultural produce.

Entry No. 55
Description of services
Carrying out an intermediate production process as job work in relation to 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 or agricultural produce.

Entry No. 55A
Description of services
Services by way of artificial insemination of livestock (other than horses).

Warehousing of agriculture produce
Item (e): Services provided by way of storage or warehousing of cereals, pulses, fruits, nut and vegetables, spices, copra, sugarcane, jaggery, raw vegetables fibers such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee and tea, are exempt from tax.

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.

Energy
Similarly, processing of sugarcane into jaggery changes its essential characteristics. Thus, jaggery is also not an agricultural produce.

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 inferred 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. [Circular No. 16/16/2017 GST dated 15.11.2017].

Custom milling of paddy into rice
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 under Entry 55 [Circular No. 19/19/2017 GST dated 20.11.2017],

3. Education services

Entry No. 66 :
Description of services
Services provided –

(a) by an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee;
(b) to an educational institution, by way of,

transportation of students, faculty and staff;
catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory;
security or cleaning or house-keeping services performed in such educational institution;
services relating to admission to, or conduct of examination by, such institution;
supply of online educational journals or periodicals. However, nothing contained in sub-items (i), (ii) and (iii)
of item (b) shall apply to an educational Institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.

Further, nothing contained in sub-item (v) of itém (b) shall apply to an institution providing services by way of,

pre-school education and education up to higher secondary school or equivalent; or
education as a part of an approved vocational education course.

Entry No. 67 :
Description of services
With effect from 31.01.2018. Indian Institutes of Management Act. 2018 came into force. This Act has empowered IIMs to:

grant degrees, diplomas and other academic distinctions or titles
specify the criteria and process for admission to courses or programmes of study, and
specify the academic content of programmes. Resultantly, all the IIMs are now “educational institutions” as they provide education as a part of a curriculum for obtaining a qualification recognised by law for the time being in force.

IIMs provide various long duration programs (1 year more) for which they award diploma/degree certificate duly recommended by Board of Governors as per the power vested in them under the IIM Act, 2017. Therefore, it is clarified that services provided by Indian Institutes of Managements to their students in all such long duration programs (one year or more) are exempt from levy of GST.

IIMs also provide various short duration/ short terms programs (less than 1 year) for which they award participation certificate to the executives/ professionals as they are considered as “participants” of the said programmes. These participation certificates are not any qualification recognised 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. Such short duration executive programs attract standard rate of GST@ 18% (CGST 9% + SGST 9%) [Circular No. 82101/2019 GST dated 01.01.2019]

Private ITIs qualify as an educational institution if the education provided by these ITIs is approved as vocational educational course as defined above.

It implies that services provided by a private ITI only in respect of designated trades notified under Apprenticeship Act, 1961 are exempt** from GST under Entry 66.

“Services in other than designated trades are liable to GST
In case of designated trades, services provided by a private ITI by way of conduct of entrance examination against consideration in the form of entrance fee is exempt from GST under Entry 66(aa).

Further, in respect of such designated trades, services provided to an educational institution, by way of, services relating to admission to or conduct of examination by a private ITI will also be exempt under Entry 66(b)(iv). However, in case of other than designated trades in private ITIs, GST shall be payable on provision of said services.

As far Government ITIs are concerned, services provided by a to Government ITI to individual trainees/students, is exempt under Entry 6 as these are in the nature of services provided by the Central or State Government to individuals [Entry 6 is discussed in detail subsequently]. Such exemption in relation to services provided by Government ITI would cover both – vocational training and examinations conducted by these Government ITIs [Circular No. 55/29/2018 GST dated 09.08.2018].

It is important to note that the Central and State. Educational Boards shall be treated as ‘Educational Institution’ for the limited purpose of providing services by way of conduct of examination to the students.

Maritime courses approved by DG Shipping
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, Maritime Training Institutes are educational institutions and the courses conducted by them are exempt subject to fulfilment of other conditions specified herein [Circular No. 117/36/2019 GST dated 11.10.2019],

College Hostel Mess services
Educational institutions generally have mess facility for providing food to their students and staff. Such facility is (i) either run by the institution/ students themselves or
(ii) is outsourced to a third person.

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, [covered under item (a) of entry 66 of the Notification].

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, i.e. the institution outsources the activity to an outside contractor, then it is a supply of service to the concerned educational institution and attracts GST “[Circular No. 28/02/2018 GST dated 08.01.2018].

**Note: It may be noted that said services when provided to an educational institution providing pre-school education or education up to higher secondary school or equivalent are exempt from tax.

4. Health care services

Entry No. 46 :
Description of services
Services by a veterinary clinic in relation to health care of animals or birds.

Entry No. 74 :
Description of services
Services by way of-
(a) health care services by a clinical establishment, an authorised medical practitioner or para-medics;
(b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above. Services provided by the cord blood banks by way of preservation of stem cells or any other service in relation to such preservation.

Rent of rooms provided to in-patients
Rent of rooms provided to in-patients in hospitals is exempt [Circular No. 27/01/2018 GST dated 04.01.2018],

Services provided by senior doctors/ consultants/ technicians
Hospitals hire senior doctors/consultants/technicians independently. Such persons do not have any contract with the patient. Hospitals pay them consultancy charges and there is no employer-employee relationship between them.

It is clarified by CBIC that services provided by such senior doctors/ consultants/technicians, whether employees or not, are healthcare services which are exempt from GST [Circular No. 32/06/2018 GST dated 12.02.2018].

Amount charged by hospitals from the patients
Hospitals charge the patients, say, ₹ 10,000/- and pay to the consultants/technicians only ₹ 7,500/- 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. Going through the definition of health care services [given above], it can be inferred that 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 [Circular No. 32/06/2018 GST dated 12.02.2018].

Food supplied to the patients
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.

When outsourced, there is no ambiguity that the 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 the 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 [Circular No. 32/06/2018 GST dated 12.02.2018],

Services other than health care services in clinical establishment’s premises
Supply of services other than healthcare services such as renting of shops, auditoriums in the premises of the clinical establishment, display of advertisements etc. Will be subject to GST

5. Services provided by Government

Entry No. 4:
Description of services
Services by governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution are exempt.

Entry No. 5:
Description of services
Services by a governmental authority by way of any activity in relation to any function entrusted tc a Panchayat under article 243G of the Constitution.

Entry No. 6:
Description of services
Services by the Central Government, State Government, Union territory or local authority excluding the following services—
(a) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than the Central Government, State Government, Union territory;
(b) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
(c) transport of goods or passengers; or
(d) any service, other than services covered under entries (a) to (c) above, provided to business entities.

Entry No. 7:
Description of services
Services provided by the Central Government, State Government, Union territory or local authority to a business entity with an aggregate turnover of up to such amount in the preceding financial year as makes it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017.
Explanation – For the purposes of this entry, it is hereby clarified that the provisions of this entry shall not be applicable to following services:-
(i) item (a), (b) and (c) of Entry 6 above.
(ii) services by way of renting of immovable property.

Entry No. 8:
Description of services
Services provided by the Central Government, State Government, Union territory or local authority to another Central Government, State Government, Union territory or local authority.
However, nothing contained in this entry shall apply to services referred in item (a), (b) and (c) of Entry 6 above.

Entry No. 9:
Description of services
Services provided by Central Government, State Government, Union territory or a local authority where the consideration for such services does not exceed ₹ 5,000. However, nothing contained in this entry shall apply to services referred in item (a), (b) and (c) of Entry 6 above. Further, in case where continuous supply of service is provided by the Central Government, State Government, Union territory or a local authority, the exemption shall apply only where the consideration charged for such service does not exceed ₹ 5,000 in a F.Y.

Entry No. 9C:
Description of services
Supply of service by a Government Entity to Central Government, State Government, Union territory, local authority or any person specified by Central Government, State Government, Union territory or local authority against consideration received from Central Government, State Government, Union territory or local authority, in the form of grants.

Entry No. 9D:
Description of services
Services by:
an old age home run by:
Central Government, State Government or an entity registered under section 12AA of the Income-tax Act, 1961
to its residents (aged 60 years or more)
against consideration upto ₹ 25,000 per month per memoer, provided that the consideration charged is inclusive of charges for boarding, lodging and maintenance.

Entry No. 34A:
Description of services
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.

Entry No. 47:
Description of services
Services provided by the Central Government, State
Government, Union territory or local authority by way of-
(a) registration required under any law for the time being in force;
(b) 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 for the time being in force.

Entry No. 61:
Description of services
Services provided by the Central Government, State Government, Union territory or local authority by way of issuance of passport, visa, driving license, birth certificate or death certificate.

Entry No. 62:
Description of services
Services provided by the Central Government, State Government, Union territory or local authority by way of tolerating non- performance of a contract for which consideration in the form of fines or liquidated damages is payable to the Central Government, State Government, Union territory or local authority under such contract.

Entry No. 63:
Description of services
Services provided by the Central Government, State Government, Union territory or local authority by way of assignment of right to use natural resources to an individual farmer for 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.

Entry No. 65:
Description of services
Services provided by the Central Government, State Government, Union territory 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.

Entry No. 65B:
Description of services
Services supplied by a State Government 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.

However, at the end of the contract period, ERCC shall submit an account to the State Government 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 State Government to the ERCC of assignment of right to collect royalty and 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 State Government to the ERCC of assignment of right to collect royalty and GST paid by the mining lease holders on royalty.

Explanation- Mining lease holder means a person who has been granted mining lease, quarry lease or license or other mineral concession under the Mines and Minerals (Development and Regulation) Act, 1957, the rules made thereunder or the rules made by a State Government under section 15(1) of the Act.

Entry No. 74A:
Description of services
Services provided by rehabilitation professionals recognised under the Rehabilitation Council of India Act, 1992 by way of rehabilitation therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA of the Income Tax Act, 1961.

6. Construction services

Entry No. 10
Description of services
Services provided by way of pure labour contracts of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the beneficiary-led individual house construction or enhancement under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana.

Entry No. 10A
Description of services
Services supplied by Electricity Distribution Utilities by way of construction, erection, commissioning, or installation of infrastructure for extending electricity distribution network upto the tube well of the farmer or agriculturalist for agricultural use.

Entry No. 11
Description of services
Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a siñgle residential unit otherwise than as a part of a residential complex.

Entry No. 41A and 41B
Description of services
Supply of TDR, FSI, long term lease (premium) of land by a and landowner to a developer are exempted subject to the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them.

Exemption of TDR, FSI, long term lease (premium) shall be withdrawn in case of flats sòld 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.

7. Passenger transformation service

Entry No. 15 :
Description of services
Transport of passengers, with or without accompanied belongings, by –

(a) air, embarking from or terminating in an airport located in the State of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal;
(b) non-air conditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire; or
(c) stage carriage other than air- conditioned stage carriage.

Entry No. 16 :
Description of services
Services provided to the Central Government, by way of transport of passengers with or without accompanied belongings, by air, embarking from or terminating at a RCS (Regional Connectivity Scheme) airport, against consideration in the form of viability gap funding.
However, nothing contained in this entry shall apply on or after the expiry of a period of 3 years from the date of commencement of operations of the RCS airport as notified by the Ministry of Civil Aviation.

Entry No. 17 :
Description of services
Service of transportation of passengers, with or without accompanied belongings, by—

(a) railways in a class other than—

first class; or
an air-conditioned coach;

(b) metro, monorail or tramway;
(c) inland waterways;
(d) public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and
(e) metered cabs or auto rickshaws (including e-rickshaws).

E- Rickshaw
means a special purpose battery powered vehicle power not exceeding 4000 watts, having three wheels for carrying goods or passengers, as the case may be, for hire or reward, manufactured, constructed or adapted, equipped and maintained in accordance with such specifications, as may be prescribed in this behalf.

8. Goods Transportation services

Entry No. 18:
Description of services
Services by way of transportation of goods-

(a) by road except the services of—

a goods transportation agency;
a courier agency;

(b) by inland waterways.

Entry No. 20 :
Description of services
Services by way of transportation by rail or a vessel from one place in India to another of the following goods –

(a) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;
(b) defence or military equipments;
(c) newspaper or magazines registered with the Registrar of Newspapers;
(d) railway equipments or materials;
(e) agricultural produce;
(f) milk, salt and food grain including flours, pulses and rice; and organic manure.

Goods Transport Agency (GTA) Service

Entry No. 21 :
Description of services
Services provided by a goods transport agency, by way of transport in a goods carriage of —

(a) agricultural produce;
(b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed ₹ 1,500;
(c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed ₹ 750;
(d) milk, salt and food grain including flour, pulses and rice;
(e) organic manure;
(f) newspaper or magazines registered with the Registrar of Newspapers;
(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or defence or military equipments.

Entry No. 21A:
Description of services
Services provided by a GTA to an unregistered person, including an unregistered casual taxable person, other than the following recipients, namely: –

(a) any factory registered under/governed by the Factories Act, 1948; or
(b) any Society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India; or
(c) any Co-operative Society established by or under any law for the time being n force; or
(d) any body corporate established, by or under any law for the time being in force; or
(e) any partnership firm whether registered or not under any law including association of persons;
(f) any casual taxable person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act.

Entry No. 21B:
Description of services
Services provided by a GTA by way of transport of goods in carriage, to:

(a) a Department or Establishment of the Central Government or State Government or Union territory; or
(b) local authority; or
(c) Governmental agencies, which has taken registration under the Central Goods and Services Tax Act, 2017 only for the purpose of deducting tax under section 51’ and not or making a taxable supply of goods or services

9. Banking and financial services

Entry No. 26:
Description of services
Services by the Reserve Bank of India.

Entry No. 26:
Description of services
Services by way of—
(a) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services);
(b) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers.

Entry No. 27A:
Description of services
Services provided by a banking company to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yogana (PMJDY).

Entry No. 34:
Description of services
Services by an acquiring bank, to any person in relation to settlement of an amount upto ₹ 2,000 in a single transaction transacted through credit card, debit card, charge card or other payment card service.

Explanation: For the purposes of this entry, ‘acquiring bank” means anÿ banking company, financial institution including non-banking financial company or any other person, who makes the payment to any person who accepts such card.

Entry No. 39A:
Description of services

Services by an intermediary of financial services located in a multi services SEZ with International Financial Services Centre (IFSC) status to a Customer located outside India for international financial services in currencies other than Indian rupees (INR).
Explanation. – For the purposes of this entry, the intermediary of financial services in IFSC is a person,

who is permitted or recognised as such by the Government of India or any Regulator appointed (or regúlation of IFSC; or
who is treated as a person resident outside India under the Foreign Exchange Management (International Financial Services Centre) Regulations, 2015; or
who is registered under the Insurance Regultory and Development Authority of India (International Financial Service Centre) Guidelines, 2015 as IFSC Insurance Office; or
who is permitted as such by Securities and Exchange Board of India (SEBI) under the Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015.

Additional/ penal interest on the overdue loan: In cases where the Equated Monthly Instalment (EMI)25 is not paid at the scheduled time, there is a levy of additional/ penal interest on account of delay in payment of EMI.

There may arise a doubt as to whether this additional / penal interest on the overdue loan is exempt under Entry 27 or such penal interest is to be treated as consideration for liquidated damages [amounting to a separate taxable supply of services under GST covered under entry 5(e) of Schedule II of the CGST Act. 2017 i.e. agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act.

Since this levy of additional penal interešt satisfies the definition of interest” as contained in Entry 27 above, the same cannot be treated as consideration for liquidated damages. Consequently, transaction of levy of additional penal interest does not fall within the ambit of Schedule II of the CGST Act, 2017 i.e agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act” [Circular No. 102121/2019-GST dated 28.06.2019)

10. Insurance business services

Entry No. 28:
Description of services
Services of life insurance business provided by way of annuity under the National Pension System regulated by the Pension Fund Regulatory and Development Authority of India under the Pension Fund Regulatory and Development Authority Act, 2013.

Entry No. 29:
Description of services
Services of life insurance business provided or agreed to be provided by the Army, Navel and Air Force Group Insurance Funds to members of the Army, Navy and Air Force, respectively, under the Group Insurance Schemes of the Central Government.

Entry No. 29A:
Description of services
Services of life insurance provided or agreed to be provided by the Naval Group Insurance Fund to the personnel of Coast Guard under the Group Insurance Schemes of the Central Government.

Entry No. 29B:
Description of services
Services of life insurance provided/agreed to be provided by the Central Armed Police Forces (under Ministry of Home Affairs) Group Insurance Funds to their members under the Group, Insurance Schemes of the concerned Central Armed Police Force.

Entry No. 36:
Description of services
Services of life insurance business provided under following schemes
(a) Janashree Sima Yojana;
(b) Aam Aadmi Bima Yojarta;
(c) Life micro-insurance product** as approved by the Insurance Regulatory and Development Authority, having maximum amount of cover of ₹ 2,00,000;
(d) Varishtha Pension BimaYojana;
(e) Pradhan Mantri Jeevan Jyoti BimaYojana;
(f) Pradhan Mantri Jan DhanYogana;
(g) Pradhan Mantri Vaya Vandan Yojana.
**Life micro-insurance product means any term insurance contract with/without return of premium, any endowment insurance contract or health insurance contract, with/without an accident benefit rider, either on individual/group basis, as per terms stated in Schedule-ll appended to the regulations [Regulation 2(e) of the Insurance Regulatory and Development Authority (Micro-insurance) Regulations, 2005].

11. Services provided by specified bodies

Entry No. 30:
Description of services
Services by the Employees’ State Insurance Corporation to persons governed under the Employees’ State Insurance Act, 1948.

Entry No. 31:
Description of services
Services provided by the Employees Provident Fund Organisation to the persons governed under the Employees Provident Funds and the Miscellaneous Provisions Act, 1952.

Entry No. 31A:
Description of services
Services by Coal Mines Provident Fund Organisation to persons governed by the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948.

Entry No. 31B:
Description of services
Services by National Pension System (NPS) Trust to its members against consideration in the form of administrative fee.

Entry No. 32:
Description of services
Services provided by the IRDAI (Insurance Regulatory and Development Authority of India) to insurers under IRDAI Act, 1999.

Entry No. 33:
Description of services
Services provided by the SEBI (Securities and Exchange Board of India) set up under the SEBI Act, 1992 by way of protecting the interests of investors in securities and to promote the development of, and to regulate, the securities market.

12. General insurance business services

Entry No. 35:
Description of services
Services of general insurance business provided under following schemes –
(a) Hut Insurance Scheme;
(b) Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna;
(c) Scheme for Insurance of Tribals;
(d) Janata Personal Accident Policy and Gramin Accident Policy;
(e) Group Personal Accident Policy for Self-Employed Women;
(f) Agricultural Pumpset and Failed Well Insurance;
(g) premia collected on export credit insurance;
(h) Restructured Weather Based Crop Insurance Scheme (RWCIS), approved by the Government of India and implemented by the Ministry of Agriculture;
(i) Jan Arogya Bima Policy;
(j) Pradhan Mantri Fasal Bima Yojana (PMFBY);
(k) Pilot Scheme on Seed Crop Insurance;
(l) Central Sector Scheme on Cattle Insurance;
(m) Universal Health Insurance Scheme;
(n) Rashtriya Swasthya Bima Yojana;
(o) Coconut Palm Insurance Scheme;
(p) Pradhan Mantri Suraksha BimaYojna;
(q) Niramaya Health Insurance Scheme implemented by the Trust constituted under the provisions of the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999.
(r) Bangla Shasya Bima

Entry No. 36A:
Description of services
Services by way of reinsurance of the Insurance schemes specified In serial number 35 or 36.

13. Pension schemes

Entry Nõ. 37 :
Description of services
Services by way of collection of contribution under the Atal Pension Yojana.

Entry Nõ. 38 :
Description of services
Services by way of collection of contribution under any pension scheme of the State Governments.

14. Business facilitator/correspondent
Entry 39: Services by the following persons ¡n respective capacities —

(a) business facilitator or a business correspondent to a banking company with respect to accounts in its rural area branch;
(b) any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in entry (a); or
(c) business facilitator or a business correspondent to an insurance company in a rural area.
Entry 39 exempts the services provided by BF/BC to a banking company with respect to accounts in Its rural area branch and services provided by any person as an intermediary to BF/BC with respect to said services are exempt from GST it is important to note that for the purpose of availing exemption from GST under this Entry, services provided by a BE/BC to a banking company in their respective individual capacities should be with respect to accounts in a branch located in the rural area of the banking company.

Wherever the services provided by BF/BC to banking company and services provided by intermediary of BF/BC to BF/BC do not fall within the scope of this entry. GST is payable on such services.

However, the banking company is the person liable to pay GST under reverse charge in respect of commission/fees charged for the taxable services provided by BF to a banking company. Similarly, GST on
taxable services provided by an agent of BC to BC is payable under reverse charge by the BC.

Further, as seen above, as per RBI’s guidelines, banks may pay reasonable commission/fee to the BC. 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 the bank is responsible to the customer for acts of omission and commission of the BF/BC.

Hence, banking company is the service provider to the ultimate customer in the BF model/BC model. 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/BC.
[Circular No. 86/05/2019 GST dated 01.01.2019]
Relevant definitions are as under

Business facilitator or business
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.

Insurance company
means a company carrying on life insurance business or general insurance business.

Intermediary
means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account [section 2 (3) of the IGST Act, 2017],

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.

15. Services provided to Government

Entry No. 3
Description of services
Pure services provided to Government:
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 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.

Entry No. 3A
Description of services
Composite supply of goods and services to Government:
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.

Entry No. 11A
Description of services
Service provided by Fair Price Shops to Central Government, State Government or Union territory by way of sale of food grains, kerosene, sugar, edible oil, etc. under Public Distribution System against consideration in the form of commission or margin.

Entry No. 40
Description of services
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.

Entry No. 72
Description of services

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.

Entry No. 51
Description of services
Services provided by the GSTN (Goods and Services Tax Network) to the Central Government or State Governments or Union territories for implementation of Goods and Services Tax.

16. Leasing services

Entry No.
Description of services
Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease of 30 years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 20% or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area.

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.

Aforesaid exemption is admissible irrespective of whether such upfront amount is payable/paid in one/more instalments provided amount is determined upfront.

Conditions:

1. 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.

2. State Government concerned shall monitor and enforce the above condition as per the order issued by the State Government in this regard.

3. 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/ buyer/ owner shall be jointly and severally liable to pay such amount of central tax, 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.

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/ 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 central tax 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.

Entry No. 43 :
Description of services
Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by the Indian Railways Finance Corporation to Indian Railways.

17. Legal services
Entry 45: Services provided by-

(a) an arbitral tribunal to –

any person other than a business entity; or
a business entity with an aggregate turnover up to such amount in the preceding FY as makes it eligible for exemption from registration under the CGST Act, 2017;
the Central Government, State Government, Union territory, local authority, Governmental Authority or Government Entity.

(b) a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services to-

an advocate or partnership firm of advocates providing legal services;
any person other than a business entity; or
a business entity with an aggregate turnover up to such amount in the preceding FY as makes it eligible for exemption from registration under the CGST Act, 2017;
the Central Government, State Government, Union territory, local authority, Governmental Authority or Government Entity.

any person other than a business entity; or
a business entity with an aggregate turnover up to such amount in the preceding FY as makes it eligible for exemption from registration under the CGST Act, 2017;
the Central Government, State Government, Union territory, local authority, Governmental Authority or Government Entity.

Relevant dedications are as under
Legal service
means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representation services before any court, tribunal or authority.

Advocate
means an advocate entered in any roll under the provisions of the Advocates

Arbitral advocate
means a sole arbitrator or a panel of arbitrators [section 2(d) of the Arbitration and Conciliation Act, 1996],

Senior advocate
An advocate may, with his consent, be designated as senior advocate if the Supreme Court or a High Court is of opinion that by virtue of his ability standing at the Bar or special knowledge or experience in law he is deserving of such distinction. Senior advocates shall, in the matter of their practice, be subject to such restrictions as the Bar Council of India may, in the interest of the legal profession, prescribes.

18. Sponsorship of sports events
Entry 53: 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 Council for the Deaf, Paralympic Committee of India or Special Olympics Bharat;
(c) by the Central Civil Services Cultural and Sports Board;
(d) as part of national games, by the Indian Olympic Association; or
(e) under the Panchayat Yuva Kreeda Aur Khel Abhiyaan Scheme

19. Skill Development services

Entry No. 69
Description of services
Any services provided by, –
(a) the National Skill Development Corporation set up by the the Government of India;
(b) a Sector Skill Council approved by the National Skill Development Corporation;
(c) an assessment agency approved by the sector Skill Council or the national Skill Development Corporation;
(d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council, in relation to-

the National Skill Development Programme implemented by the National Skill Development Corporation; or
a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or
any other Scheme implemented by the National Skill Development Corporation.

Entry No. 70 :
Description of services
Services of assessing bodies empanelled centrally by the Directorate General of Training, Ministry of Skill Development and Entrepreneurship by way of assessments under the skill Development Initiative Scheme.

Entry No. 71 :
Description of services
Services provided by training providers (Project implementation agencies) under Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY) implemented by the Ministry of Rural Development, Government of India by way of offering skill or vocational training courses certified by the National Council for Vocational Training.

20. Performance by an artist

Entry 78: Services by an artist by way of a performance in folk or classical art forms of-
(a) music, or
(b) dance, or
(c) theatre,
if the consideration charged for such performance is not more than ₹ 1,50,000 are exempt from GST.
The activities by a performing artist in folk or classical art forms of music, dance, or theatre are exempt if consideration does not exceed ₹ 1,50,000. However, if consideration from such activities exceeds ₹ 1,50,000, entire consideration is subject to GST.

Further, all other activities by an artist in other art forms e.g. western music or dance, modern theatres, performance of actors in films or television serials would be taxable. Similarly activities of artists in still art forms e.g. painting, sculpture making etc. are taxable.

However, the exemption shall not apply to service provided by such artist as a brand ambassador. ‘Brand ambassador’ means a person engaged for promotion or marketing of a brand of goods, sen/ice, property or actionable claim, event or endorsement of name, including a trade name, logo or house mark of any person.

21. Right to admission to various events

Entry No. 79 :
Description of services
Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo**.
**Zoo means an establishment, whether stationary or mobile, where captive animals are kept for exhibition to the public but does not include a circus and an establishment of a licensed dealer in captive animals [Section 2(39) of the Wild Life (Protection) Act, 1972],

Entry No. 79A :
Description of services
Services by way of admission to a protected monument so declared under the Ancient Monuments and Archaeological Sites & Remains Act 1958 or any of the State Acts, for the time being in force.

Entry No. 81 :
Description of services
Services by way of right to admission to-
(a) circus, dance, or theatrical performance including drama or ballet;
(b) award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event;
(c) recognised sporting event;
(d) planetarium,
where the consideration for right to admission to the events or places as referred to in items (a), (b), (c) or (d) above is not more than ₹ 500 per person.
Recognised sporting event means any sporting event,-
=

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

(A) by a national sports federation, or its affiliated federations, where the participating teams or individuals represent any district, State or zone;
(B) by Association of Indian Universities, Inter-University Sports Board, School Games Federation of India, All India Sports 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.
**Recognised sports body means

the Indian Olympic Association;
Sports Authority of India;
a national sports federation recognised by the Ministry of Sports and Youth Affairs of the Central Government, and its affiliate federations;
national sports promotion organisations recognised by the Ministry of Sports and Youth Affairs of the Central Government;
the International Olympic Association or a federation recognised by the International Olympic Association; or
a federation or a body which regulates a sport at international level and its affiliated federations or bodies regulating a sport in India.

22. Services by an unincorporated body or a non- profit entity

Entry No. 77 :
Description of services
Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution –

(a) as a trade union
(b) for the provision of carrying out any activity which is exempt from the levy of Goods and Services Tax; or
(c) up to an amount of ₹ 7,500 per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex.
Services provided by an unincorporated body or a non-profit entity registered under any Idw for the time being in force, engaged in,-

activities relating to the welfare of industrial or agricultural labour or farmers; or
promotion of trade, commerce, industry, agriculture, art, science, literature, culture, sports, education, social welfare, charitable activities and protection of environment, to its own members against consideration in the form of membership fee upto an amount of ₹ 1000/- per member per year.

23. Other exempt services
Description of services
Services by way of transfer of a going concern, as a whole or an independent part thereof.
Transfer of a going concern means transfer of a running business which is capable of being carried on by the purchaser as an independent business, but shall not cover mere or predominant transfer of an activity comprising a service.

Such sale of business as a whole will comprise comprehensive sale of immovable property, goods and transfer of unexecuted orders, employees, goodwill etc. Since the transfer in title is not merely a transfer in title of either the immovable property or goods or even both it may amount to service and has thus been exempted.

Royal Hotel Group is in the business of running a chain of restaurants. It intends to sell its business. It is not required to pay GST on such sale of its business.

Entry No. 9AA :
Description of services
Services provided by and to Federation Internationale de Football Association (FIFA) and its subsidiaries directly or indirectly, related to any of the events under FIFA U-17 Women’s World Cup 2020 to be hosted in India.
Condition to be fulfilled:
Director (Sports), Ministry of Youth Affairs and Sports have to certify that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020.

Entry No. 9B :
Description of services
Supply of services associated with transit cargo to Nepal and Bhutan (landlocked countries).

Entry No. 12 :
Description of services
Services by way of renting of residential dwelling for use as residence.

Entry No. 14 :
Description of services
Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having Value of Supply of a unit of accommodation below or equal to ₹ 1,000 per day or equivalent.
19C Satellite launch services supplied by Indian Space Research Organisation, Antrix Corporation Limited or New Space India Limited.

Entry No. 22 :
Description of services
Services by way of giving on hire –
(a) to a state transport undertaking (STU), a motor vehicle meant to carry more than 12 passengers**; or
(b) to a goods transport agency, a means of transportation of goods.
(c) motor vehicle for transport of students, faculty and staff, to a person providing services of transportation of students, faculty and staff to an educational institution providing services by way of pre-school education and education upto higher secondary school or equivalent.

**“Exemption under item (a) of the above entry is applicable to services provided to State Transport Undertaking and not to other departments of Government or local authority.

Generally, such State Transport Undertakings/Corporations are established by law with a view to providing public transport facility to the commuters. If transport undertakings hire the buses on lease basis from private persons on payment of consideration, the services byway of supply of motor vehicles to such STU are exempt from payment of tax. However, supplies of motor vehicles to Government Departments other than the STUs are taxable¹⁵.

(aa) to a local authority, an Electrically operated vehicle (EOV) meant to carry more than 12 passengers;
EOV 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/more electrical batteries fitted to such road vehicle.

Entry No. 23 :
Description of services
Service by way of abbess to a road or a bridge on payment of toll charges.

Entry No. 23A :
Description of services
Service by way of access to a road or a bridge on payment of annuity.

Entry No. 25 :
Description of services
Transmission/distribution of electricity by an electricity transmission/ distribution utility.
However, in this regard CBIC has clarified that the other services provided by DISCOMS (distribution companies) to consumer against charges are liable to GST such as,-

Application fee for releasing connection of electricity;
Rental Charges against metering equipment;
Testing fee for meters/transformers, capacitors etc.;
Labour charges from customers for shifting of meters or shifting of service lines;
charges for duplicate bill [Circular No. 34/8/2018 GST dated 01.03.2018].

Entry No. 44 :
Description of services
Services provided by an incubatee up to a total turnover of ₹ 50 lakh in a financial year subject to the following conditions, namely:-
(a) the total turnover had not exceeded ₹ 50 lakh during the preceding financial year; and
(b) a period of 3 years has not elapsed from the date of entering into an agreement as an incubatee.
Incubatee: means an entrepreneur located within the premises of a Technology Business Incubator (TBI)/ Science and Technology Entrepreneurship Park (STEP) recognised by the National Science and Technology. Entrepreneurship Development Board of the Department of Science and Technology, Government of India (NSTEDB) and who has entered into an agreement with the TBI/STEP to enable himself to develop and produce hi-tech and innovative products.

Entry No. 47A :
Description of services
Services by way of licensing, registration and analysis or testing of food samples supplied by the Food Safety and Standards Authority of India (FSSAI) to Food Business Operators.

Entry No. 48 :
Description of services
Taxable services, provided or to be provided, by a TBI/STEP recognised by NSTEDB or bio- incubators recognised by the Biotechnology Industry Research Assistance Council, under the Department of Biotechnology, Government of India (BIRAC).

Entry No. 49 :
Description of services
Services by way of collecting or providing news by an independent journalist, Press Trust of India or United News of India.

Entry No. 50 :
Description of services
Services of public libraries by way of lending of books, publications or any other knowledge-enhancing content or material.

Entry No. 52 :
Description of services
Services by an organiser to any person in respect of a business exhibition held outside India.

Entry No. 56 :
Description of services
Services by way of slaughtering of animals.

Entry No. 57 :
Description of services
Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables.

Entry No. 58 :
Description of services
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 knowledge dissemination.

Entry No. 59 :
Description of services
Services by a foreign diplomatic mission located in India.

Entry No. 65A :
Description of services
Services by way of providing information under the RTI Act (Right to Information Act, 2005).

Entry No. 68 :
Description of services
Services provided to a recognised sports body by-
(a) an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organised by a recognized sports body;
(b) another recognised sports body.
However, services by individuals such as selectors, commentators, curators, technical experts are taxable. The service of a player to a franchisee which is not a recognized sports body Is also taxable. The term ‘recognised sports body’ has been defined earlier in this chapter.

Entry No. 75 :
Description of services
Services provided by operators of the common bio-medical waste treatment facility to a clinical establishment by way of treatment or disposal of bio-medical waste or the processes incidental thereto.

Entry No. 76 :
Description of services
Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets.

Entry No. 82A :
Description of services
Services by way of right to admission to the events organised under FIFA U-17 Women’s World Cup 2020.

Note: For the purpose of this exemption notification, a “Limited Liability Partnership” formed and registered under the provisions of the Limited Liability Partnership Act, 2008 shall also be considered as a partnership firm or a firm.

II. OTHER EXEMPTIONS

Description of services

1. Intra-State supplies received by a registered person from any unregistered supplier exempt from CGST
Intra-State supplies of goods or services or both received by a registered person from any unregistered supplier, are exempt from the whole of the central tax leviable thereon under section 9(4) till 30.09.2019 [Notification No.8/2017 CT (R) dated 28.06.2017],

2. Central Government’s share of profit petroleum exempted from CGST
Intra-State supply of services by way of grant of license or lease to explore or mine petroleum crude or natural gas or both, has been exempted from so much of CGST as is leviable on the consideration paid to the Central Government in the form of Central Government’s share of profit petroleum as defined in the contract entered into by the Central Government in this behalf. [Notification No. 5/2018 CT (R) dated 25.01.2018]

Students may note that some of the entries granting exempting from GST are similar to the negative list entry/entry granting exemption under the erstwhile service tax law. Therefore, clarification pertaining to said negative list entry/exemption provided in the ‘service Tax Education Guide’, which may also hold good under the GST law, have been incorporated at relevant place.

Exemptions from GST – CA Inter Tax Question Bank

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