GST Exclusion List – 7 New Services Included

On the proposals of the 37th GST Council Meet, Goa, few services have been added to the GST Exclusion List

What is Exempt Supply under GST?

Under GST, certain products and services, as finalized by the govt, are excluded from goods and services tax on their supply for example ‘NIL’ GST rate is applied to such transaction. Section 2(47) of the CGST Act 2017 characterizes an excluded supply of goods and additionally benefits as a supply that either

  • Pulls in Nil/0% of GST, or
  • Completely absolved from tax under section 11 of the CGST Act, or
  • Entirely absolved from tax under section 6 of IGST act, or
  • Incorporates non-taxable supply(as characterized in section 2(78) of the CGST Act, 2017).

Besides, these absolved supplies of goods/services can be categorized into 3 classes as given:

  • Absolute Exemption: The exclusion of goods as well as services tax with no conditions pertinent.
  • Conditional Exemptions: The exclusion of goods and services, anyway subject to specific conditions.
  • Partial Exemption: Intra-State supplies of goods or services got from an unregistered individual by a registered individual is excluded from payment of tax under reverse charge provided the total estimation of such supplies got by an enlisted individual from all or any of the providers doesn’t surpass ‘ 5000/ – in a day.

So as to expedite the suggestions on excluded services, as made by the GST board in their 37th GST Council Meeting, enthusiastically, the CBIC has released notice No 21/2019 – (CT Rate) dated September 30, 2019 in alteration to Notification No. 12/2017 (CT Rate) dated June 28, 2017 (“Services exclusion warning”).

Services Rationalized Or Added In The GST Exemption List, As Recommended By The GST Council

Rationalized Services In GST Exclusion List

  1. Services given by the Central Government, State Government, Union territory or local authority to a business element with a total turnover of up to “such sum in the previous financial year as makes it qualified for exclusion from enrollment under the Central Goods and Services Tax Act, 2017 (12 of 2017)” is excluded. Prior the turnover was determined as “twenty lakh rupees (ten lakh rupees if there should be an occurrence of a unique category state) in the previous financial year” which has now been rationalized.

2. Services provided by:–

  • an arbitral council,
  • an organization of advocates or a person as an advocate other than a senior advocate, by method for lawful services,
  • a senior advocate by method for lawful services,

to inter-alia a business element with a total turnover of up to “such sum in the former financial year as makes it qualified for exception from enrollment under the Central Goods and Services Tax Act, 2017 (12 of 2017)” is excluded. Prior the turnover was indicated as “twenty lakh rupees (ten lakh rupees if there should arise an occurrence of a unique category) in the previous financial year” which has now been rationalized.

New Services Added In The GST Excluded List

S. No. 9AA has been embedded in Services exclusion notice to exclude “Services provided by and to FIFA and its backups directly or indirectly identified with any of the occasions under FIFA U-17 Women’s World Cup 2020 to be hosted in India”.

Correction has been brought under S. No. 14 of Services exclusion notice to explain that services by method of residential or lodging purposes, having an estimation of supply of a unit of convenience underneath or up to one thousand rupees for every day is excluded.

Condition to S. No. 19A/19B of Services exclusion warning has been corrected to broaden the exemption of services by method for transportation of goods by an airplane/vessel from customs station of clearance in India to a spot outside India till September 2020. Prior it was excluded only up to September 2019.

S. No. 24B has been embedded in Services exclusion notification to exclude “services by method for storage or warehousing of grains, beats, fruits, nuts and vegetables, spices, copra, sugarcane, jaggery, crude vegetable strands, for example, cotton, flax, jute and so forth., indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee and tea”.

S. No. 29B has been embedded in Services exclusion warning to exclude”services of life insurance provided or consented to be given by the Central Armed Police Forces (under Ministry of Home Affairs) Group Insurance Funds to their individuals under the Group Insurance Schemes of the concerned Central Armed Police Force”.

S. No. 35 of Services exclusion notice has been corrected to exclude services of general insurance business provider under “Bangla Shasya Bima” scheme.

S. No. 82A has been embedded in Services exclusion notification to exclude”Services by method for right to admission to the occasions organized under FIFA U-17 Women’s World Cup 2020″.

Point To Be Noted

  • The Notification has been brought into impact from October 01, 2019.
  • Comparative Notifications have been given for UTGST and IGST Law.
  • Moreover, “Services given by a delegate when the area of both provider and beneficiary of goods is outside the taxable region”, subject to specific conditions, have been excluded by method for extra amendment in IGST notification.

Enquire with Certicom Consulting in case of any queries.

 

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Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.

Certicom Consulting

Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.