Exemption in relation to services by the government Entry 9 - GST Ready Reckoner - GST

Exemption Entry 9 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 is exempt Exception to Entry (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 [ 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of Railways (Indian Railways) [ inserted by Notification no. 13/2023 w.e.f. 20.10.2023 such notification has been withdrawn by Circular No. 228 /2 2/2024-GST Dated 15/07/2024 ] (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (iii) transport of goods or passengers. 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 five thousand rupees in a financial year Clarification 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Forward Charge Mechanism and consequently exemptions that were available to Ministry of Railways (Indian Railways) were withdrawn vide notification No. 13/2023-CT(R) dated 19.10.2023 w.e.f. 20.10.2023.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 Housing Board of Haryana Government has taken sanitary fee of Rs 3000 from companies. Such fees shall be exempt. Exemption Entry 9B Supply of services associated with transit cargo to Nepal and Bhutan (landlocked countries) is exempt Example M/s Fast transit provides services of loading, unloading and transporting cargo which is imported by M/s Kathman Enterprises of Kathmandu to be shipped to Nepal. This is exempt. Few Clarifications Circular No. 177/09/2022-TRU Clarifies that : Issues Held that Whether exemption under Sl. No. 9B of notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 covers services associated with transit cargo both to and from Nepal and Bhutan Accordingly, as recommended by the GST Council, it is clarified that exemption under Sl. No. 9B of Notification 12/2017- Central Tax (Rate) covers services associated with transit cargo both to and from Nepal and Bhutan. It is also clarified that movement of empty containers from Nepal and Bhutan, after delivery of goods there, is a service associated with the transit cargo to Nepal and Bhutan and is therefore covered by the exemption Exemption Entry 9C 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 is exempt Example : M/s Training Ltd. provides training for improvement of procedures in government companies and government bodies for which it receives grants for its functioning. It is entitled to exemption. Exemption Entry 9D Services by an old age home run by Central Government, State Government or by an entity registered under section 12AA / 12AB to its residents ( aged 60 years or more ) against consideration upto twenty-five thousand rupees per month per member , With the consideration charged is inclusive of charges for boarding, lodging and maintenance is exempt . Exemption Entry 6E [ Inserted by Notification No. 04/2024- Central Tax (Rate) Dated 12th July 2024 (w.e.f. 15th July 2024)] Services provided by Ministry of Railways (Indian Railways) to individuals by way of (a) sale of platform tickets; (b) facility of retiring rooms/waiting rooms; (c) cloak room services; (d) battery operated car services. Exemption Entry 6F [ Inserted by Notification No. 04/2024- Central Tax (Rate) Dated 12th July 2024 (w.e.f. 15th July 2024)] Services provided by one zone/division under Ministry of Railways (Indian Railways) to another zone(s)/division(s) under Ministry of Railways (Indian Railways). Exemption Entry 6G [ Inserted by Notification No. 04/2024- Central Tax (Rate) Dated 12th July 2024 (w.e.f. 15th July 2024)] Services provided by Special Purpose Vehicles (SPVs) to Ministry of Railways (Indian Railways) by way of allowing Ministry of Railways (Indian Railways) to use the infrastructure built and owned by them during the concession period against consideration and services of maintenance supplied by Ministry of Railways (Indian Railways) to SPVs in relation to the said infrastructure built and owned by the SPVs during the concession period against consideration. Clarification 3. GST exemption on the transactions between Special Purpose Vehicles (SPVs) and Ministry of Railways (Indian Railways). [ Circular No. 228 /2 2/2024-GST Dated 15/07/2024 ] 3.1 Based on the recommendations of the 48th GST Council meeting held on 17.12.2022 , it was clarified to Ministry of Railways (Indian Railways) that supply of services by SPVs to Ministry of Railways (Indian Railways) by way of allowing Indian Railways to use infrastructure built and owned by them during the concession period against consideration and maintenance services supplied by Ministry of Railways (Indian Railways) to SPVs are taxable.