Notified withdrawal of various exemptions from Services Exemption Notification

By:

Background:  

Earlier, the CBIC issued Notification No. 12/2017-Central Tax dated June 28, 2017 (“the Services Exemption Notification”).

Further, the GST Council’s 47th meeting was held in Chandigarh on June 28-29, 2022 under the chairmanship of the Union Finance Minister Smt. Nirmala Sitharaman, wherein, recommendations were made for withdrawal of various exemptions for rate rationalization.

Accordingly, the recommendations have been notified vide following notification:

Notification

Now, the CBIC vide Notification No. 04/2022- Central Tax (Rate) dated July 13, 2022 has issued amendment in the Services Exemption Notification in the following manner:

SI. No. Chapter/ Heading Description of Service Rate Condition

6

Chapter 99 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

Nil Nil
7 Chapter 99 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 (12 of 2017).

Explanation.- For the purposes of this entry, it is hereby clarified that the provisions of this entry shall not be applicable to-

(a) services,-

(i) 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;

Nil

Nil

8

Chapter 99 Services provided by the Central Government, State Government, Union territory or local authority to another Central Government, State Government, Union territory or local authority:

Provided that nothing contained in this entry shall apply to services-

(i) 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;

Nil Nil
9 Chapter 99

Services provided by Central Government, State Government, Union territory or a local authority where the consideration for such services does not exceed five thousand rupees:

Provided that nothing contained in this entry shall apply to-

(i) 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;

Nil Nil

12

Heading 9963 or

Heading 9972

Services by way of renting of residential dwelling for use as residence except where the residential dwelling is rented to a registered person Nil Nil
14 Heading 9963 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 one thousand rupees per day or equivalent. Nil

Nil

15

Heading 9964  Transport of passengers, with or without accompanied belongings, by –

(a) air in economy class, 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;

Nil Nil
20 Heading 9965
Services by way of transportation by rail or a vessel from one place in India to another of the following goods –

(d) railway equipments or materials;

Nil

Nil

21

Heading 9965 or Heading 9967 Services provided by a goods transport agency, by way of transport in a goods carriage of

(b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

(c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty.

Nil Nil
24B Heading 9967 or Heading 9985 Services by way of storage or warehousing of cereals, pulses, fruits and vegetables.; Nil

Nil

24C Chapter 9968 Services by the Department of Posts by way of post card, inland letter, book post and ordinary post (envelopes weighing less than 10 grams). Nil

Nil

26

Heading 9971 Services by the Reserve Bank of India. Nil Nil
32 Heading 9971 Services provided by the Insurance Regulatory and Development Authority of India to insurers under the Insurance Regulatory and Development Authority of India Act, 1999 (41 of 1999). Nil

Nil

33

Heading 9971 Services provided by the Securities and Exchange Board of India set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors in securities and to promote the development of, and to regulate, the securities market Nil Nil
47A Heading 9983 or Heading 9991 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. Nil

Nil

51

Heading 9984 Services provided by the Goods and Services Tax Network to the Central Government or State Governments or Union territories for implementation of Goods and Services Tax Nil Nil
52A Heading 9985 Tour operator service, which is performed partly in India and partly outside India, supplied by a tour operator to a foreign tourist, to the extent of the value of the tour operator service which is performed outside India:

Provided that value of the tour operator service performed outside India shall be such proportion of the total consideration charged for the entire tour which is equal to the proportion which the number of days for which the tour is performed outside India has to the total number of days comprising the tour, or 50% of the total consideration charged for the entire tour, whichever is less:

Provided further that in making the above calculations, any duration of time equal to or exceeding 12 hours shall be considered as one full day and any duration of time less than 12 hours shall be taken as half a day.

Explanation. – “foreign tourist” means a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non- immigrant purposes.

Nil

Nil

53A

Heading 9985 Services by way of fumigation in a warehouse of agricultural produce. Nil Nil
54 Heading 9986 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-

(h) services by way of fumigation in a warehouse of agricultural produce.

Nil

Nil

56

Heading 9988 Services by way of slaughtering of animals. Nil Nil
73 Heading 9992 Services provided by the cord blood banks by way of preservation of stem cells or any other service in relation to such preservation. Nil

Nil

74 Heading 9993 Services by way of-

(a) health care services by a clinical establishment, an authorised medical practitioner or para-medics;

Provided that nothing in this entry shall apply to the services provided by a clinical establishment by way of providing room [other than Intensive Care Unit (ICU)/Critical Care Unit (CCU)/Intensive Cardiac Care Unit (ICCU)/Neo natal Intensive Care Unit (NICU)] having room charges exceeding Rs. 5000 per day to a person receiving health care services.;

Nil Nil
75 Heading 9994 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. Nil

Nil

80

Heading 9996 Services by way of training or coaching in-

(a) recreational activities relating to arts or culture, by an individual, or

(b) sports by charitable entities registered under Section 12AA or 12AB of the Income Tax Act.

Nil Nil
82 Heading

9996

 

Services by way of right to admission to the events organised under FIFA U-17 Women’s World Cup 2020 [whenever rescheduled] Nil

Nil

Similar notifications have been passed under the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”) and the Union Territory Goods and Services Tax Act, 2017 (“the UTGST Act”).

CGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009434/ENG/Notifications

IGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009454/ENG/Notifications

UTGST (Rate) Notification: https://taxinformation.cbic.gov.in/view-pdf/1009451/ENG/Notifications

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