This trade circular provides clarifications regarding the ...

GST clarifications: Railways exemptions, reinsurance regularization, real estate authority fees exempt, bank incentives non-taxable, long-term accommodation exempted.

Circulars     GST - States

September 19, 2024

This trade circular provides clarifications regarding the applicability of GST on certain services based on the recommendations of the 53rd GST Council meeting. The key points are: GST exemption for services provided by the Ministry of Railways to the general public and between its zones/divisions, regularizing past GST liability. Exemption for services between Special Purpose Vehicles and the Ministry of Railways, regularizing past liability. Statutory collections by Real Estate Regulatory Authority are exempt under an existing notification. Incentives shared by acquiring banks with stakeholders under a digital payment promotion scheme are treated as subsidies and non-taxable up to the proportion decided by NPCI. Reinsurance of specified general and life insurance schemes exempt from GST is regularized for past periods. Reinsurance of government-sponsored insurance schemes with premium paid by the government is regularized for past periods. 'Reinsurance' includes 'retrocession' services. Accommodation services with value up to Rs. 20,000 per person per month for a minimum 90-day period are exempt prospectively and regularized for past periods meeting the criteria.

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