Services provided by government Exemption Entry 61 ,62 & 63 - GST Ready Reckoner - GST

Services provided by government Exemption Entry 61 ,62 63 Exemption Entry 61 Services provided by government for the issue of certificates , passport , license etc 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 is exempt Example Mr. Lalu applied for a passport and paid a fees of 1,500/- at the passport office. As the services were specifically exempt under entry 61 of the Notification No. 12/207-Central Tax (Rate), no GST would be leviable on this transaction. Exemption Entry 61A Service by way of granting national permit Services by way of granting National Permit to a goods carriage to operate through-out India / contiguous States. Exemption Entry 62 Services by government of tolerating an act or situation 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 is exempt Scope The scope of the exemption is subject to some restrictions which can be easily understood from the following table: Who is eligible What specifically is exempt Limits for exemption. Any Person who has received specified services from Central Government, State Government, Union Territory or local authority Services provided 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; The exemption is pertaining to the contracts entered into by the Central Government, State Government, Union territory or local authority, and is limited to the payments received by way of fines, penalty etc . for tolerating non-performance of contract. Example : Government of India recovers 10 Crores as damages for not completing construction of a flyover within the time specified in the contract from the M/s ABC Limited. In this case as the tolerating of a non-performance of an act is specifically covered under the exempt entry, no GST would be leviable on such damage recovered from the party. Exemption Entry 63 Service By Government by assignment of rights to farmers Service provided by Central Government, State Government, Union Territory or a 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, fiber, fuel, raw material or other similar products Scope The scope of the exemption is subject to some restrictions which can be easily understood from the following table: Who is eligible What specifically is exempt Limits for exemption Central or State Government or Union Territory or local authority Assignment of right to use natural resources. The said service should be used for cultivation of plants rearing of all life forms of animals. Exception- Rearing of horses. Exempt if the services are provided to individual Farmer. Example: INCLUSIONS WITH REASONS Exemption is available when natural resources are used by individual farmers for the purpose of agriculture. EXCLUSIONS WITH REASONS Exemption is not available when natural resources are used by farmers for rearing of horses. It is also not available when farmers use natural resources for non-agricultural purposes .