Schedule III of the Central / State Goods and Services Tax
Act, 2016.
Activities or transactions which shall be treated neither as a Supply of
goods nor a supply of services
1. Services by an employee to the
employer in the course of or in relation to his
employment.
2. Services by any Court or
Tribunal established under any law for the time being in
force.
3. (a) The functions performed by
the Members of Parliament, Members of State
Legislature, Members of
Panchayats, Members of Municipalities and Members of other
local authorities;
(b) The duties performed by any
person who holds any post in pursuance of the
provisions of the Constitution in
that capacity; or
(c) The duties performed by any
person as a Chairperson or a Member or a
Director in a body established by
the Central Government or a State Government or
local authority and who is not
deemed as an employee before the commencement of this
clause.
4. Services by a foreign
diplomatic mission located in India.
5. Services of funeral, burial,
crematorium or mortuary including transportation of the
deceased.
Service Tax Exemptions to be continued in GST as decided by
GST Council
Sl. No.
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Services
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1.
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Services by Government or a local authority excluding the
following services— (i) services by the Department of Posts by way of speed
post, express parcel post, life insurance, and agency services provided to a
person other than Government; (ii) services in relation to an aircraft or a
vessel, inside or outside the precincts of a port or an airport; (iii)
transport of goods or passengers; or (iv) any service, other than services
covered under clauses (i) to (iii) above, provided to business entities.
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2.
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Services by the Reserve Bank
of India
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3.
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Services by a foreign diplomatic mission located in India
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4.
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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— (i) agricultural operations
directly related to production of any agricultural produce including
cultivation, harvesting, threshing, plant protection or testing or (ii)
supply of farm labour; (iii) processes carried out at an agricultural farm
including tending, pruning, cutting, harvesting, drying, cleaning, trimming,
sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging
and such like operations which do not alter the essential characteristics of
agricultural produce but make it only marketable for the primary market; (iv)
renting or leasing of agro machinery or vacant land with or without a
structure incidental to its use; (v) loading, unloading, packing, storage or
warehousing of agricultural produce; (vi) agricultural extension services;
(vii) services by any Agricultural Produce Marketing Committee or Board or
services provided by a commission agent for sale or purchase of agricultural
produce.
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5.
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Service by way of access to a
road or a bridge on payment of toll charges
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6.
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Transmission or distribution
of electricity by an electricity transmission or distribution utility
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7.
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Services by way of renting of
residential dwelling for use as residence
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8.
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Services by way of— (i)
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); (ii) inter se sale or purchase of foreign currency
amongst banks or authorised dealers of foreign exchange or amongst banks and
such dealers;
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9.
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Services by way of transportation of goods (i) by road except the
services of— (A) a goods transportation agency; or (B) a courier agency; (ii)
by inland waterways;
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10.
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Services provided to the
United Nations or a specified international organization. Exemption may be
notified by way of issuing notification under section 55 of CGST/SGST Act.
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11.
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Services provided by operators
of the Common Bio-medical Waste Treatment Facility to a clinical establishment
by way of treatment or disposal of bio-medical waste or the processes
incidental thereto;
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12.
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Services by a veterinary
clinic in relation to health care of animals or birds;
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13.
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Services by an entity registered under
section 12AA of the Income tax Act, 1961 (43 of 1961) by way of
charitable activities;[Charitable activities may be defined as presently in
notification No 25/2012-ST.
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14.
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Services by a specified organisation in respect of a religious
pilgrimage facilitated by the Ministry of External Affairs of the Government
of India, under bilateral arrangement;
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15.
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Services provided by- (a) an arbitral tribunal to - (i) any person
other than a business entity; or (ii) a business entity with a turnover up to
rupees twenty lakh (ten lakh rupees in a special category state) in the
preceding financial year; (b) a partnership firm of advocates or an
individual as an advocate other than a senior advocate, by way of legal
services to- (i) an advocate or partnership firm of advocates providing legal
services; (ii) any person other than a business entity; or (iii) a business
entity with a turnover up to rupees twenty lakh (ten lakh rupees in a special
category state) in the preceding financial year; or (c) a senior advocate by
way of legal services to- (i) any person other than a business entity; or
(ii) a business entity up to rupees twenty lakh (ten lakh rupees in a special
category state) in the preceding financial year;
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16.
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Services provided,- (a) by an
educational institution to its students, faculty and staff; (b) to an
educational institution, by way of,- (i) transportation of students, faculty
and staff; (ii) catering, including any mid-day meals scheme sponsored by the
Government; (iii) security or cleaning or house-keeping services performed in
such educational institution; (iv)services relating to admission to, or
conduct of examination by, such institution; upto higher secondary. Provided
that nothing contained in clause (b) of this entry 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
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17.
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Services provided by the
Indian Institutes of Management, as per the guidelines of the Central
Government, to their students, by way of the following educational
programmes, except Executive Development Programme, - (a) two year full time
residential Post Graduate Programmes in Management for the Post Graduate Diploma
in Management, to which admissions are made on the basis of Common Admission
Test (CAT), conducted by Indian Institute of Management; (b) fellow programme
in Management; (c) five year integrated programme in Management.
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18.
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Services provided to a recognized sports body by- (a) an individual
as a player, referee, umpire, coach or team manager for participation in a
sporting event organized by a recognized sports body; (b) another recognised
sports body;
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19.
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Services by an artist by way
of a performance in folk or classical art forms of (i) music, or (ii)dance,
or (iii)theatre, 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;
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20.
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Services by way of collecting or providing news by an independent
journalist, Press Trust of India or United News of India;
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21.
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Services by way of giving on hire - (a) to a state transport
undertaking, a motor vehicle meant to carry more than twelve passengers; or
(b) to a goods transport agency, a means of transportation of goods;
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22.
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Transport of passengers, with
or without accompanied belongings, by - (a) air, embarking from or
terminating in an airport located in the state of Arunachal Pradesh, Assam,
Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra
located in West Bengal; (b) non-airconditioned contract carriage other than
radio taxi, for transportation of passengers, excluding tourism, conducted
tour, charter or hire; or (c) stage carriage other than air-conditioned stage
carriage
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23.
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Services of life insurance business provided by way of annuity under
the National Pension System regulated by Pension Fund Regulatory and
Development Authority of India (PFRDA) under the Pension Fund Regulatory And
Development Authority Act, 2013 (23 of 2013)
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24.
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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
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25.
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Services provided by an incubatee up to a total turnover of fifty
lakh rupees in a financial year subject to the following conditions, namely:-
(a) the total turnover had not exceeded fifty lakh rupees during the
preceding financial year; and (b) a period of three years has not been
elapsed from the date of entering into an agreement as an incubatee;
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26.
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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 - (a) as a trade union; (b)
for the provision of carrying out any activity which is exempt from the levy
of GST; or (c) up to an amount of five thousand rupees per month per member
for sourcing of goods or services from a third person for the common use of
its members in a housing society or a residential complex;
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27.
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Services by an organiser to any person in respect of a business
exhibition held outside India;
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28.
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Services by way of
slaughtering of animals;
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29.
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Services received from a
provider of service located in a non- taxable territory by - (a) Government,
a local authority, a governmental authority or an individual in relation to
any purpose other than commerce, industry or any other business or
profession; (b) an entity registered under section 12AA of the Income tax
Act, 1961 (43 of 1961) for the purposes of providing charitable activities;
or (c) a person located in a non-taxable territory; Provided that the
exemption shall not apply to – (i) online information and database access or
retrieval services received by persons specified in clause (a)or clause (b);
or (ii) services by way of
transportation of goods by a vessel from a place outside India up to the
customs station of clearance in India received by persons specified in clause
(c);
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30.
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Services of public libraries by way of lending of books, publications
or any other knowledge-enhancing content or material;
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31.
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Services by Employees’ State
Insurance Corporation to persons governed under the Employees’ Insurance Act,
1948 (34 of 1948);
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32.
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Services by way of transfer of
a going concern, as a whole or an independent part thereof;
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33.
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Services by way of public
conveniences such as provision of facilities of bathroom, washrooms,
lavatories, urinal or toilets;
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34.
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Services by government, 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.
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35.
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Services received by the
Reserve Bank of India, from outside India in relation to management of
foreign exchange reserves;
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36.
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Services provided by a tour
operator to a foreign tourist in relation to a tour conducted wholly outside
India.
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37.
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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;
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38.
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Services by way of admission
to a museum, national park, wildlife sanctuary, tiger reserve or zoo;
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39.
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Services provided by
Government or a local authority to a business entity with a turnover up to
rupees twenty lakh (ten lakh rupees in 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 (a) services at S. No. 1 (i), (ii)and (iii); and (b) services
by way of renting of immovable property;
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40.
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Services provided by Employees
Provident Fund Organisation (EPFO) to persons governed under the Employees
Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952);
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41.
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Services provided by Insurance
Regulatory and Development Authority of India (IRDA) to insurers under the
Insurance Regulatory and Development Authority of India Act, 1999 (41 of
1999);
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42.
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Services provided by
Securities and Exchange Board of India (SEBI) set up under the Securities and
Exchange Board of India Act, 1992 (15 of 1992) by way of protecting the
interests of investors in securities and to promote the development of, and
to regulate, the securities market;
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43.
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Services provided by National
Centre for Cold Chain Development under Ministry of Agriculture, Cooperation
and Farmer’s Welfare by way of cold chain knowledge dissemination;
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44.
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Services by way of transportation of goods by an aircraft from a
place outside India upto the customs station of clearance in India.
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45.
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Services provided by Government or a local authority to another
Government or local authority: Provided that nothing contained in this entry
shall apply to services at S. No. 1 (i), (ii)and (iii) above
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46.
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Services provided by
Government or a local authority by way of issuance of passport, visa, driving
licence, birth certificate or death certificate.
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47.
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Services provided by Government or a 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 Government or the local
authority under such contract;
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48.
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Services provided by
Government or a local authority by way of- (a) registration required under
any law for the time being in force; (b) testing, calibration, safety check
or certification relating to protection or safety of workers, consumers or
public at large, including fire license, required under any law for the time
being in force;
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49.
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Services provided by
Government 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, fibre,
fuel, raw material or other similar products;
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50.
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Services by Government, a
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: this shall be continued by way of notification undersection
7(2)(b) of CGST/SGST Acts.
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51.
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Services provided by Government or a local authority by way of
assignment of right to use any natural resource where such right to use was
assigned by the Government or the local authority before the 1st April, 2016:
Provided that the exemption shall apply only to service tax payable on one
time charge payable, in full upfront or in installments, for assignment of
right to use such natural resource;
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52.
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Services provided by
Government or a local authority by way of allowing a business entity to
operate as a telecom service provider or use radiofrequency spectrum during
the period prior to 1st April, 2016, on payment of licence fee or spectrum
user charges, as the case may be;
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53.
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Services provided by
Government 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 (MOT).
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54.
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Services by an acquiring bank,
to any person in relation to settlement of an amount upto two thousand 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, financial institution
including non-banking financial company or any other person, who makes the
payment to any person who accepts such card
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55.
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Services of leasing of assets
(rolling stock assets including wagons, coaches, locos) by Indian Railways
Finance Corporation to Indian Railways
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56.
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Services provided by any
person for official use of 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. This exemption is available
on reciprocal basis based on a certificate issued by MEA (Protocol Division):
this shall be continued by way of notification under section 55 of CGST/SGST
Acts.
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57.
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Taxable services, provided or
to be provided, by a Technology Business Incubator (TBI) or a Science and
Technology Entrepreneurship Park (STEP) recognized by the National Science
and Technology Entrepreneurship Development Board (NSTEDB) of the Department
of Science and Technology, Government of India or bio-incubators recognized
by the Biotechnology Industry Research Assistance Council, under Department
of Biotechnology, Government of India;
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58.
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Taxable service provided by
State Government Industrial Development Corporations/ Undertakings to
industrial units by way of granting long term (thirty years, or more) lease
of industrial plots from so much of tax leviable thereon, as is leviable on
the one time upfront amount (called as premium, salami, cost, price,
development charges or by any other name) payable for such lease.
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59.
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Services provided to the
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
(VGF). Provided that nothing contained in this entry shall apply on or after
the expiry of a period of 1 year from the date of commencement of operations
of the regional connectivity scheme airport as notified by the Ministry of
Civil Aviation
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60.
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Services provided by cord
blood banks by way of preservation of stem cells or any other service in
relation to such preservation;
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61.
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Services by way of training or
coaching in recreational activities relating to,- (i) arts or culture. or
(ii) sports by charitable entities registered under section 12AA of Income
tax Act, 1961;
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62.
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Any services provided by, _ (i) the National Skill Development
Corporation set up by the Government of India; (ii) a Sector Skill Council
approved by the National Skill Development Corporation; (iii) an assessment
agency approved by the Sector Skill Council or the National Skill Development
Corporation; (iv) a training partner approved by the National Skill
Development Corporation or the Sector Skill Council in relation to (a) the
National Skill Development Programme implemented by the National Skill
Development Corporation; or (b) a vocational skill development course under
the National Skill Certification and Monetary Reward Scheme; or (c) any other
Scheme implemented by the National Skill Development Corporation.
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63.
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Services of assessing bodies
empanelled centrally by Directorate General of Training, Ministry of Skill
Development and Entrepreneurship by way of assessments under Skill
Development Initiative (SDI) Scheme
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64.
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Services provided by training
providers (Project implementation agencies) under Deen Dayal Upadhyaya
Grameen Kaushalya Yojana under the Ministry of Rural Development by way of
offering skill or vocational training courses certified by National Council
For Vocational Training.
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65.
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Services by way of sponsorship
of sporting events organised,- (a) by a national sports federation, or its
affiliated federations, where the participating teams or individuals
represent any district, State, zone or Country; (b) by Association of Indian
Universities, Inter-University Sports Board, School Games Federation of
India, All India Sports Council for the Deaf, Paralympic Committee of India
or Special Olympics Bharat; (c) by Central Civil Services Cultural and Sports
Board; (d) as part of national games, by Indian Olympic Association; or (e)
under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme;
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66.
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Services provided by way of
pure labour contracts of construction, erection, commissioning, installation,
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 / enhancement under the Housing for All (Urban)
Mission/Pradhan Mantri Awas Yojana (PMAY);
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67.
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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;
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68.
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Services of general insurance
business provided under following schemes - (a) Hut Insurance Scheme; (b)
Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna (earlier known as Integrated
Rural Development Programme); (c) Scheme for Insurance of Tribals; (d) Janata
Personal Accident Policy and Gramin Accident Policy; (e) Group Personal
Accident Policy for Self-Employed Women; (f) Agricultural Pumpset and Failed
Well Insurance; (g) Premia collected on export credit insurance; (h) Weather
Based Crop Insurance Scheme or the Modified National Agricultural Insurance
Scheme, approved by the Government of India and implemented by the Ministry
of Agriculture; (i) Jan Arogya Bima Policy; (j) National Agricultural
Insurance Scheme (Rashtriya Krishi Bima Yojana); (k) Pilot Scheme on Seed
Crop Insurance; (l) Central Sector Scheme on Cattle Insurance; (m) Universal
Health Insurance Scheme; (n) Rashtriya Swasthya Bima Yojana; or (o) Coconut
Palm Insurance Scheme; (p) Pradhan Mantri Suraksha BimaYojna; (q) Niramaya
Health Insurance Scheme implemented by Trust constituted under the provisions
of the National Trust for the Welfare of Persons with Autism, Cerebral Palsy,
Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); or (r)
Any other insurance scheme of the State Government as may be notified by
Government of India on the recommendation of GSTC.
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69.
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Services of life insurance
business provided under following schemes - (a) Janashree Bima Yojana (JBY);
or (b) Aam Aadmi Bima Yojana (AABY); (c) Life micro-insurance product as
approved by the Insurance Regulatory and Development Authority, having
maximum amount of cover of fifty thousand rupees; (d) Varishtha Pension
BimaYojana; (e) Pradhan Mantri Jeevan JyotiBimaYojana; (f) Pradhan Mantri Jan
DhanYogana; (g) Pradhan Mantri Vaya Vandan Yojana; and (h) Any other
insurance scheme of the State Government as may be notified by Government of
India on the recommendation of GSTC.
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70.
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Services by way of collection
of contribution under Atal Pension Yojana (APY).
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71.
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Services by way of collection
of contribution under any pension scheme of the State Governments.
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72.
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Service of transportation of passengers,
with or without accompanied belongings, by— (i) railways in a class other
than— (A) first class; or (B) an air-conditioned coach; (ii) metro, monorail
or tramway; (iii) inland waterways; (iv) public transport, other than
predominantly for tourism purpose, in a vessel between places located in
India; and (v) metered cabs or auto rickshaws (including E-rickshaws);
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73.
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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 (hereinafter 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 Income-tax Act: Provided that nothing
contained in (b) of this exemption shall apply to,- (i) renting of rooms
where charges are Rs 1000/- or more per day; (ii) renting of premises,
community halls, kalyanmandapam or open area, etc where charges are Rs
10,000/- or more per day; (iii) renting of shops or other spaces for business
or commerce where charges are Rs 10,000/-or more per month.
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74.
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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 less than
one thousand rupees per day or equivalent;
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75.
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Services by way of transportation by rail or
a vessel from one place in India to another of the following goods - (a)
relief materials meant for victims of natural or man-made disasters,
calamities, accidents or mishap; (b) defence or military equipments; (c)
newspaper or magazines registered with the Registrar of Newspapers; (d)
railway equipments or materials; (e) agricultural produce; (f) milk, salt and
food grain including flours, pulses and rice; and (g) organic manure
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76.
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Services provided by a goods transport
agency, by way of transport in a goods carriage of,- (a) agricultural
produce; (b) goods, where gross amount
charged for the transportation of goods on a consignment transported in a
single carriage does not exceed one thousand five hundred rupees; (c) goods,
where gross amount charged for transportation of all such goods for a single
consignee does not exceed rupees seven hundred fifty; (d) milk, salt and food grain including
flour, pulses and rice; (e) organic manure; (f) newspaper or magazines
registered with the Registrar of Newspapers; (g) relief materials meant for
victims of natural or man-made disasters, calamities, accidents or mishap; or
(h) defence or military equipment’s;
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77.
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Services by the following
persons in respective capacities - (a) business facilitator or a business
correspondent to a banking company with respect to accounts in its rural area
branch; (b) any person as an intermediary to a business facilitator or a
business correspondent with respect to services mentioned in clause (g); or
(c) business facilitator or a business correspondent to an insurance company
in a rural area;
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78.
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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;
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79.
|
Services by way of loading, unloading,
packing, storage or warehousing of rice;
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80.
|
Services by way of right to admission to, -
(i) circus, dance, or theatrical performance including drama or ballet; (ii) award
function, concert, pageant, musical performance or any sporting event other
than a recognized sporting event; (iii) recognised sporting event; where the
consideration for admission is not more than Rs 250 per person in (i), (ii)
and (iii) above.
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81.
|
Services provided by Government or a local authority where the gross
amount charged for such services does not exceed Rs.5000/. Provided that
nothing contained in this entry shall apply to services S. No. 1 (i), (ii)and
(iii) above: Provided further that in case where continuous supply of
service, as defined in sub-section (33) of section2 of the CGST Act, 2017, is
provided by the Government or a local authority, the exemption shall apply
only where the gross amount charged for such service does not exceed Rs.
5000/- in a financial year; [This may be continued by way of an omnibus
threshold exemption from payment of GST under section 9 (4) of CGST/SGST Act
in respect of supplies upto Rs 10,000/-].
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82.
|
(i) Health care services by a clinical
establishment, an authorised medical practitioner or para-medics; (ii)
Services provided by way of transportation of a patient in an ambulance,
other than those specified in (i) above;
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83.
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New Exemption: Services
provided by the Goods and Services Tax Network (GSTN) to the Central
Government or State Governments/Union Territories for implementation of Goods
and Services Tax (GST)
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The official notification issued specifying the list of services exempt under CGST and IGST has been covered in GST Yathra-15.
