Levy of GST & Exemption of GST

• Intra State Supply

• Inter state Supply
• Rates for CGST are rates as may be notified by
the Government on the recommendations of
the GST Council
• Maximum rate of CGST can be 20%.
 CGST/IGST on supply of the following
items has not yet been levied
• Alcoholic liquor for human consumption:
It is outside the scope of GST.
The manufacture/production of alcoholic
liquor continues to be subjected to Centre
excise duty, State excise duty and
Inter-State/intra-State sale of the same is
subject to CST/VAT respectively.
• Petroleum crude, diesel, petrol, Aviation
Turbine Fuel (ATF) and natural gas:
GST will be levied on these products from a
date to be notified on the recommendations
of the GST Council
Till such date, central excise duty continues to
be levied on their manufacture/production
Inter-State/intra-State sale of the same is
subject to CST/ VAT respectively.
• Tobacco:
Tobacco is within the purview of GST, i.e. GST
is leviable on tobacco.
However, Union Government has also retained
the power to levy excise duties on tobacco
and tobacco products manufactured in India.
 Resultantly, tobacco is subject to GST as well
as central excise duty
GST compensation cess is also charged on
Tobacco
• Real estate sector
• It has been kept out of ambit of GST, i.e. GST
will not be levied on sale/purchase of
immovable property.
 Rates of GST
• 5%
• 12%
• 18%
• 28%
• However 0.25%, 3% and 0% is also there
• 0% GST – Nil rated supply
EXEMPTIONS FROM GST
• GST law empowers the Central Government or
State Government, as the case may be, to
grant exemption from tax. The exemption is
granted on recommendation of the GST
Council.
• Sec 11 of CGST & Sec 6 of IGST
• It should be granted in public interest
• Exemption can be from whole of the tax or
part of the tax
• Unconditional (mandatory) or conditional
• By issue of notification or special order
 GOODS EXEMPT FROM TAX
• A list of items has been notified under section
11(1) of the CGST Act, 2017/ section 6(1) of
the IGST Act, 2017.
 LIST OF SERVICES EXEMPT FROM TAX
• Services related to charitable and religious
activities
The entity should be registered under section
12AA of the Income-tax Act, 1961, and
The entity must carry out one or more of the
specified charitable activities
• The term ‘charitable activities’ mean activities
relating to-
Public Health
Advancement of Religion, spirituality or yoga;
 Advancement of education programmes /skill
development programmes to abandoned, orphaned
or homeless children; physically or mentally abused
and traumatized persons; prisoners; or persons over
the age of 65 years residing in a rural area;
 Preservation of environment
• Grant of advertising rights to a person on the
premises of the charitable/religious trust or
on publications of the trust, or granting
admission to events, functions, celebrations,
shows against admission tickets or fee etc.

Exemption under GST Act??

• Shiksha Academy, an educational institute run
by Sarvsewa Trust, a charitable trust
registered under section 12AA of the Income-
tax Act, 1961, has organized a Skill
Development Programme for the old age
people over the age of 65 years residing in
Bangalore city.

Exemption under GST Act??

 Religious yatras or pilgrimage
• Religious yatras/pilgrimage organised by any
charitable or religious trust are not exempt, if
not under the bilateral arrangement with GOI.
• For example, the services provided by the Haj
Committee and Kumaon Mandal Vikas Nigam
Limited (KMVN) in relation to pilgrimage to
Mecca and Kailash - Mansarovar respectively
are not liable to GST.
Arranging yoga and meditation camp
by charitable trusts
• Services provided by entity registered under
section 12AA of the Income-tax Act, 1961 by
way of advancement of religion, spirituality or
yoga are exempt as such activities are covered
in definition of charitable activities
• Exempt from GST
• Hospitals managed by charitable trusts
Exemption available to health care services
also applicable to the services provided by a
clinical establishment, an authorised medical
practitioner or paramedics of a religious or
charitable trust
 Training or coaching in recreational
activities
• Services by way of training or coaching in
recreational activities relating to-
arts or culture, or
sports by charitable entities registered under
section 12AA of the Income-tax Act are
exempt from GST.
• Services provided by an educational
institution to its students, faculty and staff and
by way of conduct of entrance examination
against consideration in the form of entrance
fee are exempt from GST.
• Renting of religious place meant for general
public and manage by Charitable trust
registered under Income tax Act -exempt
• Renting of rooms in a religious place where
charges are ₹1,000 or more: Not exempt
• Renting of premises community hall, open
area where charges are ₹10,000 or more per
day: Not exempt
• Renting of shops or other space for business
or commerce where charges are ₹10,000 or
more per month: Not exempt
 Agricultural Services
• Services by way of loading, unloading,
packing, storage of agricultural goods
• Services by way warehousing of minor forest
produce like curry leave, tendu leaves
• Services by way of fumigation in a warehouse
of agricultural products (Not exempt from
Juy17, 2022 onwards)
• Services related to cultivation of plant, rearing
of life form
• Harvesting, threshing, plant protection,
testing
• Supply of farm labour
• Agricultural extension services
• Services by Agricultural Produce Marketing
Committee
• Intermediate production process
 Educational Services
• Services provided by Educational Institutions
to its students, staff and faculties
• Conduct of entrance exam against
consideration
Services to Educational Institutions by way of
transportation of students, faculty and staff
Catering, security services, house keeping
services, [ Pre-school to Class XII]
• Services related to entrance exam, admission
• Short term courses by IIMs: not exempt
• Fee charged by IITs, IIMs from prospective
employers for campus recruitment: Not exempt
• Private coaching centers or other unrecognized
institutions, though self- styled as educational
institutions, would not be treated as educational
institutions under GST and thus cannot avail
exemptions available to an educational
institution.
• Health care services by a clinical
establishment, an authorised medical
practitioner or para-medics are exempt
• Supply of services other than healthcare
services such as renting of shops, auditoriums
in the premises of the clinical establishment,
display of advertisements etc. will be subject
to GST
• Ambulance services
• Services of veterinary clinic
• Hospital Room rent if room rent is above
₹5,000 for non-ICU room is not exempted
under GST
• Food supplied to patients: if outsourced GST
will be charged but Hospital can’t claim ITC
• If canteen run by hospital, GST exempt if food
supply to in- patients as per advice of Doctor
• Services provided by Govt.
• Services provided by Govt.: any function
entrusted to a municipality; panchayat
• Speed post, express parcel, life insurance not
exempt (if not provided to central govt; state
govt)
• Services by an old age home run by
Government or entity registered under 12AA
of Income Tax Act to its residents aged 60
years or more against consideration upto
₹25,000 per month per member: exempt
• Service by Govt: issue of passport; visa; DL;
birth certificate; death certificate: Exempt
• Construction Services
• Services of Pure Labour contractor for Housing
for All (Urban) Mission, PMAY: Exempt
• Services of Pure Labour contractor to a person
who is getting his residential unit constructed:
exempt
• Passenger Transport Services
• Transport of passenger services by
 Air, in economy class, embarking or terminating
in an airport located in the state of AP; Assam;
Meghalaya; Mizoram; Nagaland; Sikkim; or
Tripura or at Bagdogra located in WB: Exempt
 Non-air condition contract carriage other than
radio taxi excluding tourism: exempt
 Stage Carriage other than AC stage Carriage:
Exempt
• Railway: First class or AC coach: Not exempt
• Metro, monorail, tramway: exempt
• Inland water ways: exempt
• Public transport: Exempt
• Transportation of goods by road
• GTA services provided to:
 person registered under GST law & registered casual
taxable person, and
 a factory registered under Factories Act, society
registered under Societies Act, Co-operative society,
body corporate and partnership firm including AOP –
whether or not registered under GST law, are liable to
tax. Further, it is important to note that in such cases, if
tax is charged @ 5%, the tax liability falls on said
recipients under the reverse charge mechanism.
• In other words, the GTA services provided to only
an unregistered individual end consumer are
exempt from GST
• The services of transportation of goods by road
are exempt from GST except services of GTA and
courier services are an exception to this
exemption.
• Individual truck/tempo operators who do not
issue any consignment note are not covered
within the meaning of the term GTA
• Banking and Financial Services
• Services by RBI [Selected services are exempt]
• Extending deposits, loans or advances by
Banks
• Sale and purchase of foreign currency by a
bank/authorized dealer only
• Transaction upto ₹2,000 through debit or
credit card
• Life insurance services exempted only on
selected schemes.
• For Example Services of life insurance business
provided by way of annuity under the National
Pension System
• Insurance provided by Armed Forces
Insurance fund
• Services provided by specified bodies
Services of EPFO,ESI, NPS, NPS
Services by IRDA, SEBI not exempt
• Services of Health Insurance
Exemption available on selected schemes
• Services by business facilitator or a business
correspondent to a banking company with
respect to accounts in its rural area branch
• Services by an artist by way of a performance
in folk or classical art forms of music, or
dance, or theatre, if the consideration
charged for such performance is not
more than ₹1,50,000 are exempt from GST
• Further, all other activities by an artist in other
art forms e.g. western music or dance,
modern theatres, performance of actors in
films or television serials would be taxable.
Similarly, activities of artists in still art forms
e.g. painting, sculpture making etc. are
taxable.
• Services by way of admission to a museum,
national park, wildlife sanctuary, tiger reserve
or zoo- Exempt
• Services by way of admission to a protected
monument – Exempt
• Services by way of right to admission to-
 circus, dance, or theatrical performance including
drama ;
 award function, concert, pageant, musical
performance
 recognised sporting event;
 planetarium,
 where the consideration for right to admission is
not more than ₹ 500 per person.
• Service by way of access to a road or a bridge
on payment of toll charges: Exempt
• Services of public libraries by way of lending of
books, publications or any other knowledge-
enhancing content or material- Exempt
• Services by way of providing information
under the RTI Act (Right to Information Act,
2005)- Exempt
 Test yourself
• Question 1
• An individual acts as a referee in a football
match organized by Sports Authority of India.
He has also acted as a referee in another
charity football match organized by a local
sports club, in lieu of a lump sum payment.
Discuss whether any GST is payable on the
activities undertaken by him.
• Question 2
• Food supplied by the canteen run by a
hospital to the in-patients as advised by the
doctor. Is this service exempt from GST?
Examine
• Question 3
• RXL Pvt. Ltd. manufactures a beauty soap with
the brand name ‘Forever Young’. RXL Pvt. Ltd.
has organized a concert to promote its
brand. Ms. Ahana Kapoor, its brand ambassador,
who is a leading film actress, has given a classical
dance performance in the said concert. The
proceeds of the concert worth ₹1,20,000 will be
donated to a charitable organization. Examine
whether Ms. Ahana Kapoor will be required to
pay any GST.
• Question 4
Examine the following regarding exemption from GST
(i) Fees charged for yoga camp conducted by a charitable
trust registered under section 12AA of the Income-tax
Act, 1961
(ii) Amount charged by business correspondent from
banking company for the services provided to the rural
branch of a bank with respect to Savings Bank Accounts
(iii) Amount charged by cord blood bank for preservation
of stem cell [Not exempt from July 2022 onwards]
(iv)Amount charged for service provided by selectors to a
recognized sports body
• Question 5
• Indiana Engineering College, a recognised
educational institution, has conducted an
entrance test examination for various courses
run by it and charged entrance fees from the
applicants. Determine whether Indiana
Engineering College is liable to pay GST on the
same.
• Question 6
• Ram, an agriculturist, has stored sugarcane in
a warehouse. He has taken fumigation
services in the said warehouse from Gupta
Pest Control Co. for which he paid the
consideration of ₹ 6,000. He seeks your advise
on the taxability or otherwise of the service so
availed by him.
• Question 7
• Poorva acts as a team manager for Indian
Sports Authority (ISA), a recognised sports
body, for a tennis tournament organised by a
multinational company and received a
remuneration of ₹2,00,000. Determine
whether GST is payable on the remuneration
received by Poorva.
 Question 8
• Discuss whether following services are
chargeable to GST. [Write appropriate
provisions in support of your answer]
Transport of passenger by air (in economy
class) services provided by Indigo Airlines from
Sikkim to Mumbai (Value of supply is
₹15,000).
Mr. X supplies farm labour to A Ltd. A Ltd. is in
the business of cultivation of roses in Kerala.
 Whether chargeable to GST….
• Tirumala Tirupati Devasthanams (TTD) owns
residential complexes in Tirumala. These are
given on rent to pilgrims, who visit Tirumala
for Darshan. Daily rent of these units is as
follows: Category A: ₹800 per day; Category B:
₹1,500 per day; Category C: ₹3,500 per day. .
Is it chargeable to GST? . [Write appropriate
provisions in support of your answer]
Life insurance service provided under PMJDY.
Hyderabad university pays ₹40,000 to B Ltd. B
Ltd. is a printer and university question papers
are printed by it.
Passenger transport service by radio taxi
A charitable trust (registered under section
12AA of Income Tax Act) provides services
pertaining to preservation of wildlife
• IIM Ahmedabad charges ₹3,50,000 per
company for participating in campus
recruitment to select students for providing
job
• Business facilitator service to a bank in rural
area