List of Exempted Services under GST

List of Exempted Services under GST

List of Exempted Services under GST: On May 19th, 2017, the GST council meeting decided the list of exempted services under GST. The GST rates were also agreed upon. Five GST rate categories for goods and services at 0%, 5%, 12%, 18%, and 28% were approved by the council.

List of Services Exempted Under GST

  1. Services provided by the local authority or the Government excludes the following services—
    • Services are provided by the Department of Posts through express parcel post, speed post, life insurance, and agency services provided to any person other than the Government.
    • Services concerning an aircraft or a vessel, inside or outside the precincts of a port or an airport.
    • Transportation of passengers or transportation of goods
    • Services other than the services which are covered under clauses (i) to (iii) above are provided to business entities.
  2. Services which the RBI provides
  3. Services provided by a foreign diplomatic mission located in India
  4. Services related to the growth of plants and breeding of every life form of animals, except the breeding of horses, for food, fiber, fuel, raw material, or other similar products or agricultural produced using —
    • Agricultural operations are directly related to the production of any agricultural produce, including cultivation, harvesting, threshing, plant protection or testing or
    • Supply of labour for farms
    • Processes that are carried out at an agricultural farm includes tending, cutting, harvesting, drying, pruning, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging, and such like operations that do not change the essential characteristics of the agricultural production but make it sellable for the primary market;
    • Leasing or renting agro machinery or vacuous land with or without a structure incidental for its utilisation;
    • Packing, unloading, loading, warehousing, and storage of agricultural production;
    • Services for agricultural extension;
    • Services by any Agricultural Production Marketing Committee or the services provided by a commission agent to purchase or sell agricultural production;
  5. Service using access to a bridge or a road on the clearance of the custom prices.
  6. By an electricity distribution utility, the distribution of electricity.
  7. Services using renting of residential dwelling for use as an abode.
  8. Services using:
    • Extending of deposits, advances, or loans in so far as the consideration is represented by way of discount or interest (other than interest involved in credit card services)
    • Inter sale or inter purchase of foreign currency amongst banks or authorised dealers of foreign exchange.
  9. Services using transportation of goods:
    • Services by road except:
      • An agency for transportation of goods or,
      • A courier agency.
    • Services by the inland canal.
  10. Services that are provided to the United Nations or a stated international organisation.
    The exemption may be notified by issuing notification under section 55 of the Act of SGST/CGST.
  11. Services which are provided by the workers of the Common Bio-medical Waste Treatment Facility or CBWTF to a clinical establishment by way of treatment or disposal of bio-medical waste or the processes incidental to that;
  12. Services by a veterinary clinic about the health care of birds or animals.
  13. Services provided by an organisation registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) by charitable activities.
  14. Services provided by a stated organisation regarding a religious pilgrimage aided by the Ministry of External Affairs (India), under the respective preparations;
  15. Services that are provided by-
    • An arbitration council to–
      • Any individual other than a business organisation; or
      • A business organisation with a turnover up to rupees twenty lakh (ten lakh rupees in a particular category state) in the preceding financial year;
    • An individual advocate or partnership firms of advocates apart from a senior advocate, using legal services to-
      • An individual advocate or a firm of advocates providing legal services;
      • Any person other than a business organisation; or
      • A business organisation with a turnover up to rupees twenty lakh (ten lakh rupees in a particular categorised state) in the prior fiscal year; or
    • A senior advocate using legal services to-
      • Any person other than a business e; or
      • A business organisation with a turnover up to rupees twenty lakh (ten lakh rupees in a unique category state) in the prior fiscal year.
  16. Services provided-
    • By an educational institution to its staff members, faculty members, and students;
    • To an educational institution, using-
      • Transportation of students, staff, and faculty;
      • Catering, comprising any system of mid-day meals, is Government-sponsored;
      • Security or house-keeping services performed in such educational institution;
      • Services relating to admission to or examination by such institution;

Provided that nothing included in clause (b) of this entry shall be implemented to an educational institution other than an organisation providing services using pre-school education and education up to higher secondary school.

  1. Services provided by the IIM or Indian Institutes of Management, according to the guidelines of the Central Government, to their students, using the following educational programs, except Executive Development Programme, –
    • Full-time residential Post Graduate Programmes in Management for the Post Graduate Diploma in Management for two years, to which admissions are made based on (CAT) Common Admission Test, conducted by Indian Institute of Management;
    • Fellow Program in Management;
    • In Management, a five-year integrated program
  1. Services provided to an acknowledged sports organisation by-
    • An individual as a player, umpire, team manager, coach, or referee for participation in a sporting event organised by a recognised sports organization;
    • Another recognised sports organisation;
  1. Services provided by an artist using performance in the art forms of classical or folk
    • music, or
    • theatre, or
    • dance, if the percentage charged for such performance is not above rupees one lakh and fifty thousand:

Given that, an exemption will not be applied to the services that are provided by artists who are the brand ambassadors;

  1. Services by way of collecting news or providing news by the United News of India or Press Trust of India or an independent journalist;
  2. Services using giving on rent–
    • To a state road transport undertaking, a motor vehicle which is meant to carry above twelve tourists; or
    • To a goods transportation agency, a method of goods transportation
  3. Transportation of tourists, with or without attended belongings, by:
    • Air, boarding from or stopping in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or at Bagdogra or Tripura;
    • Non-airconditioned carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, a charter; or
    • Stage carriage rather than an air-conditioned stage carriage.
  1. Services of life insurance business provided using annuity under the National Pension Scheme regulated by PFRDA also known as Pension Fund Regulatory and Development Authority of India under the Act of Pension Fund Regulatory And Development Authority, 2013
  2. Services of life insurance business provided by the Naval, Air Force Group Insurance Funds and Army, to the Navy, Air Force, and Army, respectively, under the Central Governments Scheme of Group Insurance.
  3. Services that are provided by an incubatee up to an overall turnover of rupees fifty lakh in a fiscal year subject to the following conditions, namely:-
    • The overall turnover had not surpassed fifty lakh rupees during the prior fiscal year; and
    • three years has not been passed from the date of agreeing on an incubate
  4. Service by an unincorporated organisation or a non-profit entity registered under any law for the time being in force, to its members by way of recompensation or share of benefaction–
    • As a union of trade;
    • For the provision of carrying out of any activity which is exempted from the duty of GST; or
    • Up to the amount of five thousand rupees per month each member for collecting of goods or services for everyday use from a third person
  5. Services that an organiser provides to an individual in respect of a business exhibit held outside India;
  6. Services using animal slaughtering;
  7. Services received from a service provider located in non-taxable territory by –
    • Government, a local authority, governmental authority or an individual about any purpose other than industry, commerce or any other profession or business;
    • An organisation registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) to provide generous actions; or
    • An individual located in a non-taxable region; Given that the exemption will not be applied to the–
      • Database access or retrieval services and online information received by people specified in clause (a) or (b); or
      • Services using transport of goods using a vessel from a place outside of India till customs duty of consent in India received by people designated in the (c) clause;
  8. Services of public libraries using publications, lending of books, magazines, or any other knowledge-enhancing material or content or item;
  9. Services provided by the Employees’ State Insurance Corporation to people governed under the Act of Employees’ Insurance, 1948;
  10. Services using transfer of a going concern, as an independent part of a whole part;
  11. Services using public conveniences such as the provision of facilities of bathroom, washrooms, lavatories, urinal or toilets;
  12. Services by Government, local authority, or a governmental authority using any activity about any gathering entrusted to a municipality under the 243 W Article of the Constitution of India.
  13. Services that the Reserve Bank of India receives from outside India about foreign exchange reserves management;
  14. Services provided to a foreign tourist by a tour operator about a wholly outside India tour.
  15. Services using pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of vegetables and fruits which do not alter the necessary characteristics of the said vegetables or fruits;
  16. Services using admission to a museum, national park, wildlife sanctuary, tiger reserve, or zoo;
  17. Services provided by the Government or a local authority to a business organisation with an overall turnover up to rupees twenty lakh (ten lakh rupees in a particular category state) in the prior fiscal year.

Explanation – For this entry, at this moment, it is clarified that the provisions of this entry should not apply to

  • Services at S. No. 1 (i), (ii)and (iii); and
  • Services using renting or leasing of immovable or fixed property;
  1. Services provided by the Employees Provident Fund Organisation (EPFO) to people governed under the Act of Employees Provident Funds and Miscellaneous Provisions Act, 1952;
  2. Services provided by the Insurance Regulatory and Development Authority of India (IRDA) to insurers under the Act of Insurance Regulatory and Development Authority of India, 1999;
  3. Services provided by SEBI or Securities and Exchange Board of India set up under the Act of Securities and Exchange Board of India, 1992 by way of protecting the interests of investors in securities and encouraging the growth and development of security market;
  4. Services provided by NCCD or National Centre for Cold Chain Development under the Ministry of Agriculture (India), Cooperation and Farmer’s Welfare using cold chain knowledge dissipation;
  5. Services using transportation of goods by an aircraft from a place outside India up to the customs station of clearance in India.
  6. Services provided by a local authority or the Government to another local authority or Government:

Given that nothing contained in this entry shall apply to services at S. No. 1 (i), (ii)and (iii) above

  1. Services are provided by the Government or a local authority by issuing a driving license, death certificate, birth certificate, visa, passport.
  2. Services provided by a local authority or the Government using enduring b non-performance of a contract for which b compensation in the form of penalties or liquidated damages is payable to the local authority or the Government following such agreement;
  3. Services provided by the local authority or the Government using-
    • registration needed under any law for the moment in force;
    • testing, safety check, calibration, or certification correlating to the safety of consumers, workers, or the public at large, including fire license, required under any law for the time being in force;
  4. Services provided by the Government or a local authority using responsibility of the right to use natural resources provided to a farmer for the growth of plants and breeding of every life form of animals, except the breeding of horses, for food, fuel, fiber, raw material or other related items;
  5. Services by a local authority, or the Government or a governmental authority using any activity about any gathering entrusted to a Panchayat under article 243G of the Constitution:

it will be continued by way of notification under section 7(2) (b) of CGST/SGST Acts.

  1. Services provided by the Government or a local authority by way of assignment of the right to use any natural resource where the Government or the local authority assigned such right to use before April 1st, 2016:

Given that the exemption will be applied only to service tax payable on one time charge payable, in total upfront or installments, for assignment of the right to use such natural resource;

  1. Services provided by a local authority or the Government using allowing a business organisation to work as a telecom service provider or use radio frequency spectrum during the period before April 1st, 2016, on payment of license fee or spectrum user charges, as the case may be;
  2. Services provided by the Government by way of deputing officers after office hours or on holidays for inspection or container stuffing or other duties to import export cargo on MOT, also known as Merchant Overtime charges.
  3. Services by a procuring bank to any person about the settlement of rupees two thousand in a one-time transaction transacted through credit card, debit card, charge card, or other payment card service.

Explanation — For this entry, “procuring bank” means any financial institution, banking company, including a non-banking commercial company or any other individual, who makes the payment to another individual who accepts such cards.

  1. Services of leasing or renting assets (rolling stock assets including locos, wagons, coaches) by Indian Railways Finance Corporation (IRFC) to the Indian Railways.
  2. Services provided by any individual for official use of a foreign diplomatic mission or consular post in India or personal use or for the members of the family of diplomatic agents or career consular officers posted there. This exemption is available on a reciprocal based on a certificate which is issued by MEA (Protocol Division): this will be continued using notification under section 55 of the Act of CGST/SGST.
  3. Taxable services, which are provided or will be provided, by TBI or Technology Business Incubator or STEP or Science and Technology Entrepreneurship Park, which is recognised by the NSTEDB of the Department of Technology and Science, India or bio-incubators which are recognised by the BIRAC, under the Department of Biotechnology, India;
  4. Taxable service provided by the State Government Industrial Development Corporations to the industrial unit. Using granting extended duration lease (thirty years, or more) the industrial plots from so much of tax leviable, as is leviable on the single upfront amount known as premium, price, cost, salami, or any other name due before-mentioned lease.
  5. Services provided to the Government using transportation of passengers with or without attended belongings, by air, boarding from or terminating at a provincial connectivity system airport, against contemplation in the form of VGF or viability gap funding.

Given that nothing contained in this entry will be applied on or after the expiry of a period of a year from the date of commencement of operations of the provincial connectivity system airport as notified by the Ministry of Civil Aviation

  1. Services that are provided by cord blood banks using preservation of stem cells or any other service about such conservation;
  2. Services using coaching or training in recreational activities relating to,-
    • Culture or arts; or
    • Sports by a charitable organisation registered under section 12AA by the Act of Income-tax, 1961;
  3. Any services that are provided by-
    • The National Skill Development Corporation, also known as NSDC, which n Government the Government of India sets up;
    • A Sector Skill Council is also known as SSC, which the NSDC approves;
    • An assessment agency which the SSC or NSDC approves;
    • A training partner who the NSDC or SSC approves;
      • The National Skill Development Corporation implemented the National Skill Development Programme; or
      • The National Skill Certification and Monetary Reward Scheme started a vocational skill development course; or
      • The National Skill Development Corporation implemented many other schemes.
    • Services provided by the assessing bodies empanelled centrally by the Directorate General of Training, Ministry of Skill Development and Entrepreneurship using assessments under SDI or Skill Development Initiative.
    • Services that are provided by the training providers under Deen Dayal Upadhyaya Grameen Kaushalya Yojana, under the Ministry of Rural Development, offer vocational or skill training courses certified by the National Council for Vocational Training.
    • Services using sponsorship of sporting events organised-
      • By a national sports organisation, or its affiliated federations, where the participating teams or individuals represent any state, district, country, or zone;
      • By Paralympic Committee of India or Special Olympics Bharat,
      • Association of Indian Universities, Games Federation of India, All India Sports Council for the Deaf, Inter-University Sports Board School.
      • By Sports Board and Central Civil Services Cultural;
      • Under the Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme; or
      • As part of national games, by Indian Olympic Association.
  1. Services provided using actual labour contracts of construction, commissioning, erection, installation, alteration, fitting out, repair, maintenance, renovation, or completion of a civil structure or any other original works about the beneficiary-led individual house enhancement or construction under the Pradhan Mantri Awas Yojana (PMAY);
  2. Services using pure labour contracts of construction, erection, commissioning, or installation of original works of a single residential unit otherwise a part of a residential complex;
  3. Services of general insurance business that are provided under the following schemes –
    • Scheme for Hut Insurance; and
    • Scheme for Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna; and
    • Scheme for the Tribal Insurance; and
    • Gramin Accident Policy and Janata Personal Accident Policy; and
    • For Self-Employed Women, Group Personal Accident Policy; and
    • Weather Based Crop Insurance Scheme or the Modified National Agricultural Insurance Scheme, implemented by the Ministry of Agriculture and approved by the Government of India; and
    • Premia collected on export credit insurance; and
    • Agricultural Pump set and Failed Well Insurance; and
    • Pilot Scheme on Seed Crop Insurance; and
    • Pradhan Mantri Suraksha Bima Yojna; and
    • Jan Arogya Bima Policy; and
    • Central Sector Scheme on Cattle Insurance; and
    • Niramaya Health Insurance Scheme constituted under the provisions of the National Trust for the Welfare of People with Mental Retardation, and, Cerebral Palsy, and, Trust implements autism, and, Multiple Disabilities Act, 1999; and
    • Rashtriya Swasthya Bima Yojana; and
    • Coconut Palm Insurance Scheme; and
    • National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana); and
    • Universal Health Insurance Scheme; or
    • Any other insurance scheme by the State Government may be notified by the Indian Government by the GSTC recommendation.
  4. Services by life insurance business provided under following schemes –
    • Varishtha Pension BimaYojana; and
    • Aam Aadmi Bima Yojana (AABY); and
    • Jayashree Bima Yojana (JBY); and
    • Life micro-insurance product as approved by the Insurance Regulatory and Development Authority, having the maximum amount of cover of fifty thousand rupees; or
    • Pradhan Mantri Vaya Vandan Yojana;
    • Pradhan Mantri Jeevan JyotiBimaYojana;
    • Pradhan Mantri Jan DhanYogana; and
    • Any other insurance scheme by the State Government may be notified by the Government of India on the recommendation of GSTC.
  5. Services using a collection of contributions under Atal Pension Yojana (APY).
  6. Services using a collection of contributions under any pension system of the State Governments.
  7. Service of transport of passengers, with or without accompanied belongings, by—
    • Railways in a class except for the—
      • An air-conditioned coach; or
    • First-class;
      • Inland waterways;
      • Metro, monorail or tramway;
      • Public transport, other than mainly used for tourism causes, in a vessel within places in India; and
      • Auto rickshaws or metered cabs (including E-rickshaws)
  8. Services by an individual using-
    • Carrying out any religious ceremony; and
    • Renting of areas of a religious place which is meant for the common public, managed or owned by an organisation which is registered as a sacred or religious or charitable trust under the section of 12AA of the Income-tax Act 1961, or a trust or an institution which is registered under sub-clause (v) of clause (23C) of section 10 of the Income-tax Act: Given that nothing contained in (b) of this exemption will be applied to –
      • Renting or letting of rooms where per day charges are Rs 1000/- or more; and
      • Renting or letting of premises, community halls, Kalyan mandapam or open area, etc. where per day charges are Rs 10,000/- or more; and
      • Renting or letting shops or other spaces for business or commerce where per month charges are Rs 10,000/-or more.
  9. Services by a guest house, hotel, inn, campsite or club, for lodging or residential or purposes, having declared duty of a unit of an accommodation per day is less than one thousand rupees
  10. Services using transportation via rail of a vessel from one place to another in India of the goods given below –
    • Relief materials for victims of natural or artificial disasters, calamities, accidents, or mishaps;
    • Military or defence equipment;
    • Magazines or newspapers registered with the Newspaper Registrar;
    • Railway materials or equipment;
    • Agricultural product;
    • Salt, milk, and food grain including rice, flours, and pulses; and
    • Organic compost
  11. Services provided by a goods transportation agency, using transportation in a carriage of goods-
    • Agricultural product;
    • Goods, where the gross amount charged for transport of all such goods for a single consignee is not more than rupees seven hundred fifty;
    • Goods, where the gross amount charged for the transportation of goods on a consignment transported in a single carriage is not more than one thousand five hundred rupees;
    • Salt, milk, and food grain including rice, flours, and pulses; and;
    • Organic compost;
    • Newspaper or magazines registered with the Newspaper Registrar;
    • Relief materials meant for victims of artificial or natural disasters, calamities, accidents, or mishap; or
    • Defense or military equipment
  12. Services by the following people in respective capacities –
    • A business correspondent or the business facilitator to a banking company concerning accounts in its rural region branch;
    • The business facilitator or a business correspondent to an insurance company in a rural region;
    • Any individual as an intermediary to a business facilitator or a business correspondent for services mentioned in the clause (g); or
  13. Carrying out an intermediary production method as job work about the growing of plants and breeding of all life forms of animals, except the breeding of horses, for food, fuel, fibre, raw material, or other similar agricultural products;
  14. Services using packing, storage, warehousing, loading, unloading or storage of rice;
  15. Services using right to admission to, –
    • Dance, circus, or theatrical performance including ballet or drama;
    • Concert, pageant, musical performance, award function or any sporting event other than a distinguished event of sporting;
    • Distinguished event of sporting;

The consideration for admission of each person is not more than 250 rupees per person in (i), (ii), and (iii) above.

  1. Services provided by a local authority or the Government or a where the gross amount charged for such services is not more than 5000 rupees.

Given that nothing contained in this entry shall apply to services S. No. 1 (i), (ii)and (iii) above:

Given further that a constant supply of service, as defined in sub-section (33) of section 2 of the Act of CGST, 2017, which is provided by a local authority or the Government, the exemption will be applied only where the gross amount is charged for such service is not more than Rs. 5000/- in a fiscal year;

  1. (i) Services provided by health care systems by an authorised medical practitioner, para-medics, or a clinical establishment;
    (ii) Services provided using transportation of a patient in an ambulance, apart from those specified in (i) above;
  2. Services that are provided by the Goods and Services Tax Network (GSTN) to the State Governments or Union Territories for the implementation of GST
  3. Pure services (excluding the contract services or other composite supplies which involve the supply of goods) that are provided to the Government, a local authority, or a governmental authority by way of any activity about any function entrusted to a Panchayat under Article 243G of the Constitution or any role assigned to a Municipality under the 243W Article of the Constitution
  4. Services that are provided to the Government under any insurance scheme for which the Government pays the total premium
  5. Services that are provided to the Government under any training or education program, the Government bears the total expenditure of the provided service.

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