Exemption in relation to services by the government Entry 7 & 8 - GST Ready Reckoner - GST

Exemption in relation to services by the government Exemption entry 7 Services provided by the Central Government, State Government, Union territory or local authority to a business entity with an aggregate turnover of up to twenty lakh rupees (ten lakh rupees in case of a special category State) in the preceding financial year is exempt Explanation - For the purposes of this entry, it is hereby clarified that the provisions of this entry shall not be applicable to - 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; [ Notification No. 04/2022 -Central Tax (Rate) Dated 13 July 2022 ] and the Ministry of Railways (Indian Railways) [ inserted by Notification no. 13/2023 w.e.f. 20.10.2023, such notification has been withdrawn by Circular No. 228 /2 2/2024-GST Dated 15/07/2024 ] in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; of transport of goods or passengers; and services by way of renting of immovable property. Calrification 2. GST exemption on the outward supplies made by Ministry of Railways (Indian Railways) [ Circular No. 228 /2 2/2024-GST Dated 15/07/2024 ] 2.1 Based on the request of Ministry of Railways (Indian Railways) and recommendations of the 52nd GST Council meeting held on 07.10.2023 , all supplies of goods and services made by Ministry of Railways (Indian Railways) were brought under Forward Charge Mechanism and consequently exemptions that were available to Ministry of Railways (Indian Railways) were withdrawn vide notification No. 13/2023-CT(R) dated 19.10.2023 w.e.f. 20.10.2023. Example Ramesh Enterprise had turnover of 10 lakhs during FY 2022-2023.Ramesh enterprise has taken testing service from Central Government department. The supply of services by government are exempt and no GST is payable on such services by Ramesh Enterprise on reverse charge. Exemption entry 8 Services provided by the Central Government, State Government, Union territory or local authority to another Central Government, State Government , Union territory or local authority is exempt Exception to this entry shall apply to 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 ; [ Notification No. 04/2022 -Central Tax (Rate) Dated 13 July 2022 ] and the Ministry of Railways (Indian Railways) [ inserted by Notification no. 13/2023 w.e.f. 20.10.2023 such notification has been withdrawn by Circular No. 228 /2 2/2024-GST Dated 15/07/2024 ] in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; of transport of goods or passengers Calrification 2. GST exemption on the outward supplies made by Ministry of Railways (Indian Railways) [ Circular No. 228 /2 2/2024-GST Dated 15/07/2024 ] 2.1 Based on the request of Ministry of Railways (Indian Railways) and recommendations of the 52nd GST Council meeting held on 07.10.2023 , all supplies of goods and services made by Ministry of Railways (Indian Railways) were brought under Forward Charge Mechanism and consequently exemptions that were available to Ministry of Railways (Indian Railways) were withdrawn vide notification No. 13/2023-CT(R) dated 19.10.2023 w.e.f. 20.10.2023. Example : Water Resources Ministry of Central Government has provided data services to Water Resource Ministry of Karnataka State for ₹ 25 Lakhs . It is exempt.