List of Services Exempted in GST Updated till August 22nd, 2017 (22-08-2017). Service Tax Exemptions in GST 2017: Service Tax Exemptions to be continued in GST as decided by GST Council. The Goods and Service Tax (GST) Council on Friday (19th May 2017) is decided GST Rates on Services. Recently we provide GST Rates for Services 2017: List of all services Taxable in GST Regime. In this article we provide list of all services exempted from tax in GST Regime. Here you may check and download full list of Services Exempted in GST in PDF Format.
In GST Council Meeting held on 19th May 2017 in Srinagar GST Council Exempted Healthcare and education services in GST Regime. Most service structures will remain as is, said sources. This implies services will become cheaper in some segments. Finance minister Arun Jaitley, at a presser in Srinagar, listed out the details, which were:
Changes in GST Rates on 10th November 2017
(A) Exemptions / Changes in GST Rates / ITC Eligibility Criteria
- All stand-alone restaurants irrespective of air conditioned or otherwise, will attract 5% without ITC. Food parcels (or takeaways) will also attract 5% GST without ITC.
- Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC.
- Restaurants in hotel premises having room tariff of Rs 7500 and above per unit per day (even for a single room) will attract GST of 18% with full ITC.
- Outdoor catering will continue to be at 18% with full ITC.
- GST on services by way of admission to “protected monuments” to be exempted.
- GST rate on job work services in relation to manufacture of those handicraft goods in respect of which the casual taxable person has been exempted from obtaining registration, to be reduced to 5% with full input tax credit.
B) Rationalization of certain exemption entries
- The existing exemption entries with respect to services provided by Fair Price Shops to the Central Government, State Governments or Union Territories by way of sale of food grains, kerosene, sugar, edible oil, etc. under Public Distribution System (PDS) against consideration in the form of commission or margin, is being rationalized so as to remove ambiguity regarding list of items and the category of recipients to whom the exemption is available.
- In order to maintain consistency, entry at item (vi) of Sr. No.3 of notification No. 11/2017-CT(R) will be aligned with the entries at items (ii), (iii), (iv) and (v) of SI.No.3. [The word “services” in entry (vi) will be replaced with “Composite supply of Works contract as defined in clause 119 of Section 2 of CGST Act, 2017”].
- In order to obviate dispute and litigation, it is proposed that irrespective of whether permanent transfer of Intellectual Property is a supply of goods or service.-
- (i) permanent transfer of Intellectual Property other than Information Technology software attracts GST at the rate of 12%; and
- (ii) permanent transfer of Intellectual Property in respect of Information Technology software attracts GST at the rate of 18%.
- It is being clarified that credit of GST paid on aircraft engines, parts & accessories will be available for discharging GST on inter–state supply of such aircraft engines, parts & accessories by way of inter-state stock transfers between distinct persons as specified in section 25 of the CGST Act.A Circular will be issued clarifying that processed products such as tea (i.e. black tea, white tea etc.), processed coffee beans or powder, pulses (de-husked or split), jaggery, processed spices, processed dry fruits & cashew nuts etc. fall outside the definition of agricultural produce given in notification No. 11/2017-CT(R) and 12/2017-CT(R) and therefore the exemption from GST is not available to their loading, packing, warehousing etc.
- A suitable clarification will be issued that (i) services provided to the Central Government, State Government, Union territory under any insurance scheme for which total premium is paid by the Central Government, State Government, Union territory are exempt from GST under Sl. No. 40 of notification No. 12/2017-Central Tax (Rate); (ii) services provided by State Government by way of general insurance (managed by government) to employees of the State government/ Police personnel, employees of Electricity Department or students are exempt vide entry 6 of notification No. 12/2017-CT(R) which exempts Services by Central Government, State Government, Union territory or local authority to individuals.
3. It is proposed to issue notifications [giving effect to these recommendations of the Council] on 14th/15th November, 2017, to be effective from 00hrs on 15th of November, 2017.
Amendment to list of Exempted Services
Central Government vide Notification No.12/2017- Central Tax (Rate), dated the 28th June 2017 provided the list of services exempted under GST regime. In this regard to add further exemption to 3 more services therein, Central Government vide Notification No. 21/2017-Central Tax (Rate), dt. 22-08-2017 has amended the aforesaid notification to provided exemptions from GST to the following services:
|Description of Services||Rate (%)||Condition|
|Services provided by and to Fédération Internationale de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-17 World Cup 2017 to be hosted in India.||Nil||Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U- 17 World Cup 2017.|
|Service provided by Fair Price Shops to Central Government by way of sale of wheat, rice and coarse grains under Public Distribution System(PDS) against consideration in the form of commission or margin||Nil||Nil|
|Service provided by Fair Price Shops to State Governments or Union territories by way of sale of kerosene, sugar, edible oil, etc. under Public Distribution System (PDS) against consideration in the form of commission or margin.||Nil||Nil|
Further, amendment is made to change the scheme for which exemption from tax will be given. Earlier, service of general insurance under Weather Based Crop Insurance Scheme or the Modified National Agricultural Insurance Scheme was exempt. Now, by this notification it has been substituted by Restructured Weather Based Crop Insurance Scheme (RWCIS)
Similarly, service of general insurance under National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana) was exempt. Now, by this notification it has been substituted by Pradhan Mantri Fasal BimaYojana (PMFBY) [Notification No. 21/2017-Central Tax (Rate), dt. 22- 08-2017]
List of All Services Exempted in GST
Updated till 3rd July 2017 (03-07-2017)
|S.No.||Description of Services||Rate|
|1||Services by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) by way of charitable activities.||Nil|
|2||Services by way of transfer of a going concern, as a whole or an independent part thereof.||Nil|
|3||Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution.||Nil|
|4||Services by Central Government, State Government, Union territory, local authority or governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution.||Nil|
|5||Services by a governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution.||Nil|
|6||Services by the Central Government, State Government, Union territory or local authority excluding the following services—
|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.
Explanation.- For the purposes of this entry, it is hereby clarified that the provisions of this entry shall not be applicable to-
(b) services by way of renting of immovable property.
|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:
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 agen- cy services provided to a person other than the Central Government, State Government, Union territory;
(ii) in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
(iii) of transport of goods or passengers.
|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:
Provided that nothing contained in this entry shall apply to –
Provided further that in case where continuous supply of service, as defined in sub-section (33) of section 2 of the Central Goods and Services Tax Act, 2017, is provided by the Central Government, State Government, Union territory or a local authority, the exemption shall apply only where the con- sideration charged for such service does not exceed five thousand rupees in a financial year.
|10||Services received from a provider of service located in a non- taxable territory by –
Provided that the exemption shall not apply to –
(i) online information and database access or retrieval services received by persons specified in entry
(a) or entry (b); or
(ii) services by way of transportation of goods by a vessel from a place outside India up to the cus- toms station of clearance in India received by persons specified in the entry.
|11||Services provided by way of pure labour contracts of construction, erection, commissioning, instal- lation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the beneficiary-led individual house construction or enhancement under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana.||Nil|
|12||Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single residential unit otherwise than as a part of a residential complex.||Nil|
|13||Services by way of renting of residential dwelling for use as residence.||Nil|
|14||Services by a person by way of-
(a) conduct of any religious ceremony;
(b) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961 (here- inafter referred to as the Income-tax Act) or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act:
Provided that nothing contained in entry (b) of this exemption shall apply to,-
|15||Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent.||Nil|
|16||Transport of passengers, with or without accompanied belongings, by –
|17||Services provided to the Central Government, by way of transport of passengers with or without accompanied belongings, by air, embarking from or terminating at a regional connectivity scheme airport, against consideration in the form of viability gap funding:
Provided that nothing contained in this entry shall apply on or after the expiry of a period of one year from the date of commencement of operations of the regional connectivity scheme airport as notified by the Ministry of Civil Aviation.
|18||Service of transportation of passengers, with or without accompanied belongings, by—
(a)railways in a class other than—
(b) metro, monorail or tramway;
(c) inland waterways;
(d)public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and
(e) metered cabs or auto rickshaws (including e-rickshaws).
|19||Services by way of transportation of goods-
(a) by road except the services of—
(b) by inland waterways.
|20||Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India.||Nil|
|21||Services by way of transportation by rail or a vessel from one place in India to another of the following goods:
|22||Services provided by a goods transport agency, by way of transport in a goods carriage of –
|23||Services by way of giving on hire –
|24||Service by way of access to a road or a bridge on payment of toll charges.||Nil|
|25||Services by way of loading, unloading, packing, storage or warehousing of rice.||Nil|
|26||Transmission or distribution of electricity by an electricity transmission or distribution utility.||Nil|
|27||Services by the Reserve Bank of India.||Nil|
|28||Services by way of:
(a) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services);
(b) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign ex- change or amongst banks and such dealers.
|29||Services of life insurance business provided by way of annuity under the National Pension System regulated by the Pension Fund Regulatory and Development Authority of India under the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013).||Nil|
|30||Services of life insurance business provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds to members of the Army, Navy and Air Force, respectively, under the Group Insurance Schemes of the Central Government.||Nil|
|31||Services by the Employees’ State Insurance Corporation to persons governed under the Employees’ State Insurance Act, 1948 (34 of 1948).||Nil|
|32||Services provided by the Employees Provident Fund Organisation to the persons governed under the Employees Provident Funds and the Miscellaneous Provisions Act, 1952 (19 of 1952).||Nil|
|33||Services provided by the Insurance Regulatory and the Development Authority of India to insurers under the Insurance Regulatory and the Development Authority of India Act, 1999 (41 of 1999).||Nil|
|34||Services provided by the Securities and Exchange Board of India set up under the Securities and Ex- change Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors in securi- ties and to promote the development of, and to regulate, the securities market.||Nil|
|35||Services by an acquiring bank, to any person in relation to settlement of an amount upto two thou- sand rupees in a single transaction transacted through credit card, debit card, charge card or other payment card service.
Explanation.— For the purposes of this entry, “acquiring bank” means any banking company, finan- cial institution including non-banking financial company or any other person, who makes the payment to any person who accepts such card.
|36||Services of general insurance business provided under following schemes –
|37||Services of life insurance business provided under following schemes-
|38||Services by way of collection of contribution under the Atal Pension Yojana.||Nil|
|39||Services by way of collection of contribution under any pension scheme of the State Governments.||Nil|
|40||Services by the following persons in respective capacities –
|41||Services provided to the Central Government, State Government, Union territory under any insurance scheme for which total premium is paid by the Central Government, State Government, Union territory.||Nil|
|42||Services received by the Reserve Bank of India, from outside India in relation to management of foreign exchange reserves.||Nil|
|43||One time upfront amount (called as premium, salami, cost, price, development charges or by any other name) leviable in respect of the service, by way of granting long term (thirty years, or more) lease of industrial plots, provided by the State Government Industrial Development Corporations or Undertakings to industrial units.||Nil|
|44||Services provided by the Central Government, State Government, Union territory or local authority by way of allowing a business entity to operate as a telecom service provider or use radio frequency spectrum during the period prior to the 1st April, 2016, on payment of licence fee or spectrum user charges, as the case may be.||Nil|
|45||Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by the Indian Railways Finance Corporation to Indian Railways.||Nil|
|46||Services provided by an incubatee up to a total turnover of fifty lakh rupees in a financial year subject to the following conditions, namely:-
|47||Services provided by-
(a) an arbitral tribunal to –
(b) a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services to-
(c) a senior advocate by way of legal services to-
|48||Services by a veterinary clinic in relation to health care of animals or birds.||Nil|
|49||Services provided by the Central Government, State Government, Union territory or local authority by way of- tt
|50||Taxable services, provided or to be provided, by a Technology Business Incubator or a Science and Technology Entrepreneurship Park recognised by the National Science and Technology Entrepre- neurship Development Board of the Department of Science and Technology, Government of India or bio-incubators recognised by the Biotechnology Industry Research Assistance Council, under the Department of Biotechnology, Government of India.||Nil|
|51||Services by way of collecting or providing news by an independent journalist, Press Trust of India or United News of India.||Nil|
|52||Services of public libraries by way of lending of books, publications or any other knowledge-enhanc- ing content or material.||Nil|
|53||Services provided by the Goods and Services Tax Network to the Central Government or State Gov- ernments or Union territories for implementation of Goods and Services Tax.||Nil|
|54||Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India.||Nil|
|55||Services by an organiser to any person in respect of a business exhibition held outside India.||Nil|
|56||Services by way of sponsorship of sporting events organised –
|57||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—
|58||Carrying out an intermediate production process as job work in relation 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.||Nil|
|59||Services by way of slaughtering of animals.||Nil|
|60||Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables.||Nil|
|61||Services provided by the National Centre for Cold Chain Development under the Ministry of Agriculture, Cooperation and Farmer’s Welfare by way of cold chain knowledge dissemination.||Nil|
|62||Services by a foreign diplomatic mission located in India.||Nil|
|63||Services by a specified organisation in respect of a religious pilgrimage facilitated by the Ministry of External Affairs, the Government of India, under bilateral arrangement.||Nil|
|64||Services provided by the Central Government, State Government, Union territory or local authority by way of issuance of passport, visa, driving licence, birth certificate or death certificate.||Nil|
|65||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 liquidat- ed damages is payable to the Central Government, State Government, Union territory or local author- ity under such contract.||Nil|
|66||Services provided by the Central Government, State Government, Union territory or 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, fibre, fuel, raw material or other similar products.||Nil|
|67||Services provided by the Central Government, State Government, Union territory or local authority by way of assignment of right to use any natural resource where such right to use was assigned by the Central Government, State Government, Union territory or local authority before the 1st April, 2016: Provided that the exemption shall apply only to tax payable on one time charge payable, in full upfront or in installments, for assignment of right to use such natural resource.||Nil|
|68||Services provided by the Central Government, State Government, Union territory by way of deputing officers after office hours or on holidays for inspection or container stuffing or such other duties in relation to import export cargo on payment of Merchant Overtime charges.||Nil|
|69||Services provided –
(a) by an educational institution to its students, faculty and staff;
(b) to an educational institution, by way of,-
Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.
|70||Services provided by the Indian Institutes of Management, as per the guidelines of the Central Gov- ernment, to their students, by way of the following educational programmes, except Executive Devel- opment Programme: –
|71||Services provided to a recognised sports body by-
|72||Any services provided by, _
(a) the National Skill Development Corporation set up by the Government of India;
(b) a Sector Skill Council approved by the National Skill Development Corporation;
(c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;
(d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council, in relation to-
|73||Services of assessing bodies empanelled centrally by the Directorate General of Training, Ministry of Skill Development and Entrepreneurship by way of assessments under the Skill Development Initia- tive Scheme.||Nil|
|74||Services provided by training providers (Project implementation agencies) under Deen Dayal Upad- hyaya Grameen Kaushalya Yojana implemented by the Ministry of Rural Development, Government of India by way of offering skill or vocational training courses certified by the National Council for Vocational Training.||Nil|
|75||Services provided to the Central Government, State Government, Union territory administration under any training programme for which total expenditure is borne by the Central Government, State Gov- ernment, Union territory administration.||Nil|
|76||Services provided by the cord blood banks by way of preservation of stem cells or any other service in relation to such preservation.||Nil|
|77||Services by way of-
|78||Services provided by operators of the common bio-medical waste treatment facility to a clinical estab- lishment by way of treatment or disposal of bio-medical waste or the processes incidental thereto.||Nil|
|79||Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lava- tories, urinal or toilets.||Nil|
|80||Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution –
|81||Services by an artist by way of a performance in folk or classical art forms of-
if the consideration charged for such performance is not more than one lakh and fifty thousand rupees:
Provided that the exemption shall not apply to service provided by such artist as a brand ambassador.
|82||Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo.||Nil|
|83||Services by way of training or coaching in recreational activities relating to:
|84||Services by way of right to admission to-
|85||Services provided to the United Nations or a specified international organization is exempt by way of refund.||Nil|
|86||Services provided to a foreign diplomatic mission or consular post in India or for personal use or for the use of the family members of diplomatic agents or career consular officers posed therein, is exempt by way of refund.||Nil|
|87||Services by the Central Government or State Government or any local authority by way of any activity in relation to a function entrusted to a Panchayat under article 243G of the Constitution is neither a supply of goods nor a supply of service||Nil|
Note: The above list includes services excempt from CGST/IGST.
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