Ch.

5 Taxable
Taxable Person
Person

Ch 5 Taxable Person

Provisions contained in this chapter

List of Sections: -
Section 22- Registration required after threshold limit,
- Voluntary Registration,
- Registration in case of PAN change
Section 23- No Registration is required.
Section 24- Mandatory Registration without seeing the limit of ``10lakh / 20Lakh / 40Lakh.

Background:
Where supply of Goods/Service made by a Taxable person whether Intra or Inter Shall be leviable
to GST i.e. where supply made by “Non-Taxable Person” then no GST will be levied.

Now the question is this who is Taxable Person. Taxable Person has been defined U/s = 2 as the
person
Ÿ “Who is Registered (i.e. who has taken voluntarily Registration) or
Ÿ Required to be registered as per Law.
Now question is this when a person required to get registered himself. The solution is given under
section 22,23,24 as to when a person Require Registration & when he does not need to get Register
himself.

Goods / Services Supply Intra-State/ By Taxable Person

Inter-State
Services

Taxable Person Means: -

The person who is registered (Voluntarily Registered u/s 22)
(OR)
The person who is required to be registered (u/s 22 & 24)

i.e. The person liable to pay tax may be –

Supplier (NCM) (Or) Recipient (RCM)

Note: - Registration is granted state wise. For Example, if any person has a business as follows

5.1
6.1
5.1
CA
CA Rajkumar
Rajkumar
 Taxable Person Ch.5

Mr. X
Minimum registrations
required = 3 @ State wise
UP MP Haryana
*B/P = 1 *B/P = 1 *B/P = 1 Minimum registrations
*B/P = 2 *B/P = 2 allowed = 6 @ Business place wise
*B/P = 3
#(B/P= Business place)

Year 1 year 2 year 3 year 4 year 5 year 6 year

Turnover 16 Lakh 18 Lakh 19 Lakh 21 Lakh 22 Lakh 2 Lakh
Registration No No No
O
FIL
Yes No No
GST Payment No No No Yes (on 1 lakh) Yes (on 22 lakh) Yes (on 2 lakh)

[*Suppose Applicable limit is 20 Lakhs.]

riata
Whether Registration is required or not?

Step- 1 If you fall under the provisions of Section 23, then No registration is required.

(a) A person (in the form of Individual/HUF) exclusively engaged in agriculture user
F activities. a Ilan
IND
(b) A person exclusively engaged in Exempted Services
I 100% Exemption notification
Nil Rated Supply
i Non-Taxable supply
i
(c ) Other Notified Services eg. Notified Service- A person exclusively engaged in RCM
supplies.

Step- 2 T
If you fall under the provisions of Section 24, then Mandatory registration is required

Particulars Explanation

DO
(I) Inter-state Taxable
Supply of Goods
I
Pre GST- UP------------------------------------>Haryana
O
[Except Handicraft]
(If Supply of Goods = CST = Mandatory registration required to UP)
(If Supply of Services = No Mandatory Registration, only required
after limit) S Tax

Post GST- UP------------------------------------>Haryana

(If Supply of Goods = IGST = Mandatory registration required to UP)
(If Supply of SErvices = Mandatory Registration required, But E/N
applies in case of services) GTA Service
Tati
5.2
CA Rajkumar
Ch.5 Taxable Person

(ii) CTP making taxable Mandatory registration @ 5days in advance, because Government
supply [Except wants to collect GST in all situations.
Handicraft]

(iii) Person required to

pay tax under RCM
GTA Service

Em
Transportation of Goods

ran
Buyer I
GSTV
(Registration not (RCM applies, Need to take
Required u/s 23) Mandatory registration u/s 24)
Step X
(iv) Person required to Section 9(5) notifies 4 types of persons-
pay Section 9(5)

*H= Hotel Accommodation ice

Such persons shall be treated
*M=Miscellaneous Utilities as Deemed Supplier
*T=Transportation of Passengers
*R = Restaurants

(v) NRTP making Mandatory registration @ 5 days in advance, because Government

taxable Supply wants to collect GST in all situations
Iter Handy
(vii) Responsible Principal Invoice Agent Buyer
Agent
ie Real Agent
HE
in Real
Responsible Agent
NO ITransaction
Need Mandatory Registration
Relive
SIGHT
(x) ECO

(xi) Person who

supplies through an (Saree)
ECO (Covered u/s 52), (Invoice=10,000 +1800 =11,800)
Mrs. B
other than supplies (Saree business)
covered u/s 9(5) Customer
(Started with
1lakh)

Mrs. B- *Mandatory registration required.

FLIPCART- *Mandatory registration required

(xiii) Other notified Mandatory registration required for notified persons.

Persons

CA Rajkumar 5.3
 Taxable Person Ch.5

Step- 3 If you don't fall under above both steps, then check here-

< Applicable Limit

(a) Aggregate Turnover = Registration not required
(10L/20L/40L)
1 No means no

Cia
(b) Aggregate Turnover > Applicable Limit = Registration required in all
(All outward supplies) (10L/20L/40L) those States/UTs, from where
you are making TAXABLE supply
DATA AllINDIA limit
gaping beats AIM
*Taxable Nil Rated supply
*Exempted 100% E/N Supply
*Zero Rated Non-Taxable supply

a
If you are making1taxable
O
If you are making taxable
O
If you are making taxable supplies

00000
supplies from any of the 4
specified states
supplies from any of the 6
specified states-
from any other States/UTs &
deals in-

Bustin
* Manipur, * Arunachal Pradesh,
Only Only Goods&
* Mizoram,
* Nagaland,
It
* Uttarakhand,
* Meghalaya,
Goods Services Services

* Tripura
of
* Sikkim,
* Telangana,
Limit= Limit= Limit=
* Puducherry 40 lakh 20 lakh 20 lakh
3 (Note 1) (Note 2) (Note 3)
Applicable Limit = 10 L
o
Applicable Limit = 20 L

Note-1=For tobacco / Ice cream /Pan

mani Armm t
Masala, Bricks/Blocks and earthen
tiles = Limit= 20Lakhs.
p
Note-2= For all services,
j Limit=20lakhs.

HR Note-3= If service is Interest on

loans/deposits/advances, then
Limit = 40lakhs.

5.4
CA Rajkumar
 Ch.5 Taxable Person

Note-1- BATA
IIV (Responsible
IReal
Agent)
Transfer (Sale) of Shoes of Rs 5 lakh

Goods

Supply (free of cost)

BATA GST Supply of Supply of

(Principal) Bata Shoes Own Local Shoes
Rs 5lakhs Rs 3lakhs

8 Lakhs

Q-1 Turnover of `5 Lakhs will be counted in the aggregate turnover of…..? = Agent
Q-2 Registration of Agent is……..? = Mandatory Registration

Note-2- Transfer of Business / PAN change :-

I
Sale of Business to
Mr. X Mr. Y
Business Takeover
Mr. X Mr. X (Son)

Mr. X High Court / Supreme Court Mr. Z

(Turnover)

Registration of New Owner need

Mr. X to be cancelled a fresh registration
Registration is
E PAN Based
a

CA Rajkumar 5.5
 Taxable Person Ch.5

Step TH BE Noreyin
Practice
STELE AnyShale
Q.1 STATE DL HR
INTRA State taxable supplies of goods 5 Lakh 6 Lakh
INTER State taxable supplies of services 0 7 Lakh

Ans: Aggregate Turnover: `` 18 lakh and applicable limit `` 20 lakh so the person not liable
for registration in any the state.

Q.2 STATE
Taxable Supply (Intra)
TIq AP
9 Lakh
g
UK
10 Lakh
Exempted Supply (INTRA) 19 Lakh 10 Lakh

Ans: Aggregate Turnover: `` 48 lakh and applicable limit `` 20 lakh and the person liable
for registration in all the states.
15L LOL
KAI
Q.3 STATE UK NAGALAND
Taxable Supply (Intra) O
AP
6 Lakh 1 Lakh 8 Lakh

Ans: Aggregate Turnover: `` 15 lakh and applicable limit `` 10 lakh as the person making
taxable supply from NAGALAND and the person liable for registration in all the states.

Q.4 STATE
Supply (Intra)
OAP
6 Lakh: Taxable
O
UK
1 Lakh
NAGALAND
8 Lakh
Taxable Non Taxable

WE RE NORI
Ans: Aggregate Turnover: ` 15 lakh and applicable limit `20 lakh as the person making non
taxable supply from NAGALAND and the person liable not liable registration in any
of the state.

Q.5 Restaurant: in UP
Food : 11 lakh
EM
Alcoholic liquor for
pre Human Consumption food
: 10 lakh
------------
21 lakh
S 2olaly
Ans: Registration required as aggregate turnover exceeds `20 lakh and supply of food is
taxable supply

Rey

5.6
CA Rajkumar
Ch.5 Taxable Person

Q.6 Exclusive Exempted Supply: Delhi state

@ INTRA STATE: 11 Lakh NOReg

@ Inter State: 10 Lakh

Ans: NO registration required as supplies are exclusively exempted

Q.7 - Taxable Supply of service (INTRA) = 10 lakh

- Exempted Supply (Intra) = 10 lakh

2060 2am
Tsung
- Transfer to Job Worker = 10 lakh

Ans: Aggregate Turnover: `20 lakh and applicable limit `20 lakh and the person NOT liable
for registration.

LEGAL CONTENT
7. SECTION 23: NO REGISTRATION
Following persons are not required to get Registration i.e. such person will be called as Non-Taxable
persons.

(1) AN agriculturist exclusively engaged in agriculture (only Individual /Hindu Undivided Family)

(2) Person Engaged only in Exempted supplies (Exempted supply = NIL Rated, 100% Exempted,
Non-Taxable).

(3) Other Notified person (e.g. where a supplier supplies only RCM supplies then such supplier need not
to get any Registration Under GST).

SECTION 24: MANDATORY REGISTRATION

The following person requires mandatory registration u/s: 24 i.e. Registration Required without
applying any threshold limit of `10 Lakhs/20 Lakhs/40 Lakhs.

(1) Person engaged in Inter- state Taxable supplies of goods.

[However suppliers of handicraft goods and inter - state supplier of services are not required
Mandatory Registration i.e. they need registration only after applicable threshold limit.]

(2) Casual Taxable Person making Taxable supplies

[However the casual taxable person making taxable supplies of handicraft goods not required
mandatory registration i.e. need registration only after applicable threshold limit.]

(3) The Person who is liable to pay Tax under RCM as Recipient.

CA Rajkumar 5.7
 Taxable Person Ch.5

ECO
(4) Person who is required to pay tax under section 9(5). [Hotel Accommodation, Misc. Utilities,
Transportation of passengers]

(5) Non Resident Taxable person making taxable supplies. [NR]

(6) The VEND

NO
supplies of goods who supplied goods through E-Commerce operator.

(7) Agent making taxable supplies on behalf of other taxable person.

(8) Other notified persons.

SECTION: 22 Registration After thresholds Limit and Voluntarily Registration

(1) Where the person having aggregate turnover only upto threshold limit or below the limit then the
Person not required to get registration.

a
But when the person crosses the threshold limit of 10 Lakh/20 Lakh/40 Lakh then he is required to
get registration “In All Those States” From where he is making “Taxable Supplies”.
a a
WHAT IS AGGREGATE TURNOVER: “Aggregate Turnover” means:

the aggregate value of all taxable supplies

(excluding the value of inward supplies on which tax is payable by a person on reverse
charge basis),

Iexempt supplies,
exports of goods or services or both and
inter-State supplies of persons having the same Permanent Account Number,
to be computed on all India basis
but excludes central tax, State tax, Union territory tax, integrated tax and cess.

WHAT WILL BE THE APPLICABLE LIMIT:

O
(1) Where the person making “Taxable Supplies” from “ANY” of the 4 Specified states then
the applicable limit of the person will be `10 LAKH for all states.
[4 specified States = MANIPUR, MIZORAM, NAGALAND, TRIPURA]

(2) Where the person making supplies from any of the 6 specified states then the applicable
limit will be `20 Lakh for all the states.
[6 specified States = Arunachal Pradesh, Uttarakhand, Meghalaya, Sikkim, Telangana,
Puducherry].

(3) Where the person making supplies from other states/union territories and

Ü Exclusively Engaged in supply of goods then the limit will be `` 40 Lakh for all the states.
Ü However limit of `` 40 lakh will not be applicable—

5.8
CA Rajkumar
Ch.5 Taxable Person

Ÿ Where the supplier is making supplies of TIP (Tobacco, Ice-Cream, Pan masala) then the
limit will be ` 20 Lakh. Bndh Bdes Tiles
Ÿ Where the Person exclusively engaged in Supplies of Service then the applicable limit
will be
`20 Lakhs.
Ÿ Where the person engaged in Supplies Goods as well as services then the applicable
limit will be ` 20 Lakhs.

Moreover if the person supplies goods and earned Interest (Exempted supply of Service) then
such Exempted supply of service shall be ignored and the applicable limit will be `` 40 Lakhs.

(2) Persons registered under old taxation system (Central Excise Law/VAT Laws Etc.) then the
person shall be liable to get registration with effect from 01.07.2017.
(3) Where a going concern transferred or succeeded then such transferee or successor shall
be liable to be registered with effect from the date of such transfer/Succession.
[PAN CHANGE]

(4) Where there is transfer of business due to amalgamation or demerger of 2 or more

persons then the transferee shall be liable to be registered
I with effect from the date of
Incorporation of New Entity. [PAN CHANGE]
(5) ÉIn case of Agents – Supply made by agent on his own account or made on behalf of all
his principals then all such supplies shall be taken in computing “Aggregate Turnover”
In case of Job work - After completion of job-work goods are supplied by principal in
open market then such supply shall be taken in computing aggregate turnover of
principal.

(6) Any person may obtain Voluntarily Registration.

CA Rajkumar 5.9
 Taxable Person Ch.5

Registration in CASEof Eco

Estep Ego
hid isaf
SE other
L'd services
1M is It so
LEI
ÉÉÉÉÉ
IECOI

GstPaidByVENDOR
EMI LIFE
HemDRKA Mandy
9StRaidByYEm
Eco.gg
Regestahut
gyyyq
ÉI
Enright
CRUX ECO AWAY mandy
Goods VENDOR Mandy
Souci Vendor Altered

roti
Need Gstx BASIS of Exemption
l Need Basic need Y KAPPA
desire Gst Allowed Issue
MA Kaan
2
ITC NOT
Shiksha
3 International practice Swasthya
4 OLD Age persons
5 common man APL BPL
6 Government Involment
7 Gst Collection Issue Bite
8 Jay JAWAN JAY KISSAM
9 AGRICULTURE PRODUCE
Promotion of Anything

5.10
CA Rajkumar
Ch.6 Exemption
Exemption

Ch 6 Exemption

Section: 11 Power to grant exemption from tax

Basis Explanation Notification Special Order

Type
Conditional Unconditional Conditional Unconditional

Wholly Exempt Wholly Exempt Wholly Exempt Wholly Exempt

Partly Exempt Partly Exempt Partly Exempt Partly Exempt

Examples Ÿ Supply of Salt / Water: Floods and landslides etc has caused
Ÿ Health Care SERVICES: extensive damage to public and
Ÿ Supply of Agriculture implements: private property
Ÿ Rate of IGST will be 1% on
Aluminums INGOTS. , if it is used
in household products
Ÿ Solar cells If use in specified final
product:
Effective (I) Specific Date (or) (I) Specific Date (or)
Date of Main (ii) Date of Issue (ii) Date of Issue
Notification

Effective date Example:

of 1-1-18 Confusion Clarification Conclusion
Supplementary
Notification Govt Issued What about Govt. Issue Effective
a Notification “Pipe fittings” second Notification Date of Second
on 1-1-18 - whether exempt issued on 1-7-18 Notification will
Stating that or NOT? the word PIPE shall be:
“Pipes” are include “Pipe Fittings”
Exempted from Also.
GST

Q.: What about the assesses who have paid taxes during confusion period: Get
refund with interest.
Q.: What if such Notification (Second) issued after the expire of one year from the
date of original Notification: shall apply prospectively.

6.1
6.1
CA
CA Rajkumar
Rajkumar
 Exemption Ch.6

N/N: 12/2017 issued under section 11 of CGST Act, 2017

CHARITABLE & RELIGIOUS

1. Charitable Trust
Service By way of following charitable activities by a Recognised charitable trust will be Exempted.
(a) Activity by way of Public health- by way of care & counseling of terminally ill persons, HIV Infected
persons, and person addicted to Drugs or Alcohol and awareness regarding the same.
(b) Activity of advancement of Religion, spiritually or Yoga.
(c) Activity of advancement of Educational programs or skill development for Abandoned children,
person residing in rural AREAS having age over 65 years, Prisoner, Traumatized Person.
(d) Activities of preservation of Environment Including watershed, forest & wide life

Charitable Activities
Charitable & Religious GST= Exempted
- Care & Counselling of “Jo Gaye Kaam Se”
Trust Registered under
I. T. Act 1961
& Spread awareness “Taki Aur Na Jayain”
- Advancement of Religion / Spirituality / Yoga
- Advancement of Education & Skill Development for--
- “Bachaao—Bachaao”
Abandoned Children
+ 65 years Gramin Persons
Prisoners
Traumatized Person
2. Renting of Religious Place & Conduct of Religious Ceremony:
(a) Service of conduct of Religious ceremony will be exempted

2. (a)
Religious Ceremony Katha / Pravachan
Fees= 5,00,000 Fees= 10,00,000
GST= Exempted GST= Exempted

(b) Service of Renting of Religious place owned or managed by a Trust where Room Rent limited to `999
per day, Hall Rent limited to `9999 per day, shop rent limited to be 9999 per month will be exempted.
2. (b)
Room in Gurudwara Hall in Temple Shops in Krishna
Janam Bhumi

If Rent upto 9̀99 per day If Rent upto 9̀999 per day If Rent upto 9̀999 per day
GST= Exempted GST= Exempted GST= Exempted
If Rent 1̀,000 per day If Rent 1̀0,000 per day If Rent 1̀0,000 per day
GST= Taxable GST= Taxable GST= Taxable

Value = 1̀,000 Value = 1̀0,0+00 Value = 1̀0,0+00

6.2
CA Rajkumar
Ch.6 Exemption

3. Religious Journey:
Service By Kumaon Mandal Vikas Nigam Limited in Respect of “Kailash Mansarover Yatra (CHINA) and
service by HAJ Committee in Respect of Haj Yatra (Saudi Arab) will be exempted.

Kailash Mansarovara Fees= 5̀,00,000 Haj Yatra (S.Africa) Fees= 5̀,00,000

Yatra (China) GST=Exempted GST=Exempted

EDUCATION

1. NEWS:
Service of providing news by an “Independent Journalist”, Press Trust of India (PTI) or United News of
India (UNI) will be exempted. (However if Journalist is Employee then it will not be a supply.

(1) Journalist (Self Employed)

GST=Ex empted

News Paper

Journalist (Employee) (Not a Supply) Goods = YES

Times of India GST=Exempted

News Banks (PTI / UNI)

GST=Exempted

2. LIABRARY:
Service of “Lending of Books etc. “By Public Libraries will be Exempted (However such Service By Private
Libraries will be Exempted under SN:3)
(2) Public Library
School Library

GST= NO GST= NO

6.3
6.3
CA
CA Rajkumar
Rajkumar
 Exemption Ch.6

3. EDUCATIONAL INSTITUTE:
Service provided by Education Institute (School/College/Institution) to student, Faculty, staff & New
Entrants (entrance Examination fee) will be exempted.

Service provided to Educational Institute –

(a) Service of T.C.S. (Transportation facilities for student, faculties & Staff, catering Including Mid-day
meal, security & House – keeping Services) will be exempted ONLY for schools.
(b) Service Related to or conduct of Entrance/Final Examination will be exempted for all
(i.e. school / college / Institutes).
(c) Service of supply of “Online Educational Periodicals” to colleges will be Exempted.

(3). Taking Educational Institutions Giving

T. C. S.* Service
XYZ (Exempt only for schools)
School
Service to Student/Staff/
Faculty (i.e. Education/
transportation, Library etc.)
GST=Exempted
Online Education (Periodicals)
XYZ College
(Exempt only for Collages)

Institution

Entrance Exam Fees

Service related to Exams
GST=Exempted
XYZ (Entrance / Final Exams)
Training
(Exempt for all)

T.C.S. = Transportation Service

Transportation / Giving to Students by
Catering / Mid-day Meal/ College (GST=NO)
Security & House keeping Taking by College
(GST=Taxable)

6.4
CA Rajkumar
Ch.6 Exemption

Circular No. 149/05/2021-GST: Clarification regarding applicability of GST on supply of food in

Anganwadis and Schools

Question. Whether GST will be applicable on serving of food in schools under Mid-Day Meals Scheme
if such supplies are funded by government grants and/or corporate donations. And what about
Anganwadies.

Answer: NO, Accordingly, as per said entry, any catering service including mid -day meal provided to an
educational institution [school and pre-school] is exempt from GST.

Further, it is clarified that the service will be exempted from levy of GST irrespective of its
funding from government grants or corporate donations.

Moreover An Anganwadi provides pre-school non-formal education.

Hence, serving of food to anganwadi shall also be covered by said exemption, whether
sponsored by government or through donation from corporates. [Circular No. 149/05/2021]

Q. Whether GST would be applicable on various services supplied by Centre and State Boards such as
National Board of Examination (NBE).

These services include

entrance examination (on charging a fee) for admission to educational institution,
Input services for conducting such entrance examination for students,
accreditation of educational institutions or professional so as to authorise them to provide their
respective services.

Ans. NO, “Central and State Educational Boards” are treated as Educational Institution for the limited
purpose of providing services by way of conduct of examination to the students including any entrance
examination, to the students. So it is clarified that-

Service of conduct GST is exempt on services provided by Central or State Boards (including
of examination for the boards such as NBE) by way of conduct of examination for the
the students, students, including conduct of entrance examination for admission to
educational institution.

Input services GST is also exempt on input services relating to admission to, or conduct
relating to admission of examination, such as online testing service, result publication, printing
to, or conduct of of notification for examination, admit card and questions papers etc,
examination when provided to such Boards.

In case of other GST at the rate of 18% applies to other services provided by such Boards,
services namely of providing accreditation to an institution or to a professional
(accreditation fee or registration fee such as fee for FMGE screening test)
so as to authorise them to provide their respective services

6.5
6.5
CA
CA Rajkumar
Rajkumar
 Exemption Ch.6

Explanation: For removal of doubts, it is clarified that

- Any authority, board or body set up by the Central Government or State
Government including National Testing Agency
- For conduct of entrance examination for admission to educational institutions
- Shall be treated as educational institution
- For the limited purpose of providing services
- By way of conduct of entrance examination for admission to educational institutions.

Q. Applicability of GST on application fee charged for entrance or the fee charged for issuance of
eligibility certificate for admission or for issuance of migration certificate by educational institutions.

Ans: It is clarified that the amount or fee charged from prospective students for entrance or admission, or
for issuance of eligibility certificate to them in the process of their entrance / admission as well as the fee
charged for issuance of migration certificates by educational institutions to the leaving or ex-students is
covered by exemption. [Circular No. 177/09/2022]

4. CORPORATE-CUM-INSTITUTE:
Any service provided by “NSDC” (National Skill Development Corporation), SSC (Sector Skill Council),
AA (Assessment Agency), training partner (e.g. Ambuja Cement Foundation,Hindustan Soft Education
etc.) will be Exempted.

(4) Corporate Cum Institute

Service
GST=Exempted

5. Service by way of “Assessments” under “SDI” (Skill development Initiative will be exempted.

6. Service By “Training Provider” under “DDUGKY” (Deen Dayal Upadhyaya Grameen Kaushalya Yojna”)
will be Exempted.

(5) & (6)

Service under
Various Institute:
e.g., KVR Info. / Skill Development Initiative Scheme
Drishtee / & DDUGKY
Dr. Reddy / Etc.
GST=Exempted

7. TRAINING:
Service provided “Under any training Programme” to CG/SG/UT i.e. where 75% or more Expenditure
total expenditure is born by Govt will be exempted

6.6
CA Rajkumar
Ch.6 Exemption

(7)
Supplier
(IRS classes of GST)
Service (Consideration = 1̀8,00,000) Recipient (Govt.)
For 75% or more
20 Days (Every Day 2 classes)
consideration

GST =Exempted

HEALTH

Service of Health Care (Diagnostic, Treatment+, Care) of Birds / Animal provided by Veterinary clinic will be
Exempted.

Animal's Health Care

Health Care Services

GST=Exempted

2. CORD BLOOD BANK:

Service of preservation of STEM Cells or any Related Service by Cord Blood Bank will be exempted.

(2) Cord Blood Bank

Blood Bank Service GST=Exempted

Collection Charges GST=Exempted

3. HEALTH CARE OF HUMAN BEINGS:

- Health care service (Diagnostic, treatment, care including food for patient, Hair Transplant, Cosmetic &
Plastic Surgery for CURE , Ambulance service etc.)
- Provided by (Hospital, Nursing Home, Sanatorium, clinic, pathology Lab (Indoor & outdoor)
Physiotherapist, Dietitians etc.

However following will be taxable -

- the services provided by a clinical establishment
- by way of providing room
- [other than Intensive Care Unit (ICU)/Critical Care Unit (CCU)/Intensive Cardiac Care Unit
(ICCU)/Neo natal Intensive Care Unit (NICU)]
- having room charges exceeding `5000 per day to a person receiving health care services.

6.7
6.7
CA
CA Rajkumar
Rajkumar
 Exemption Ch.6

- Moreover ambulance service given by any other will also be Exempted.

Hospital/Nursing Health Care Service

Home/ Dr. Clinic/ Path Lab (Including Ambulance Service)
GST =Exempted

Note: If Ambulance Service given by others

GST =Exempted

Q. Whether GST is applicable on services by way of Assisted Reproductive Technology (ART) procedures
such as In vitro fertilization (IVF).

Ans. Health care services provided by a clinical establishment, an authorized medical practitioner or
para-medics are exempt.

The abnormality/disease/ailment of infertility is treated using ART procedure such as IVF. It is clarified
that services by way of IVF are also covered under the definition of health care services for the purpose
of above exemption notification. [Circular No. 177/09/2022]

4. REHABILITATION CENTRE:
Service By : Recognised Rehabilitation professionals.

By way of : Rehabilitation Therapy or counseling etc.

AT : Medical Establishment, Educational Institutes, Rehabilitation

Centre established by CG/SG/UT or Registered TRUST.

(4) Nasha Mukti Kendra Recipient

GST=Exempted

5. BIO-MEDICAL WASTE:
- Service of “Treatment or disposal” of Biomedical waste or Related process.
- By operator of “biomedical waste”
- to clinical Establishment.

6.8
CA Rajkumar
Ch.6 Exemption

(5)
GST=Exempted
Synergy Waste Hospital Waste
Management (Recipient)
(Supplier)

6. PUBLIC CONVINIENCE:
Service By way of public convenience such as provision of facilities of bathroom, washroom, urinal,
toilets will be exempted

(6) (Supplier) You

(Recipient)
GST=Exempted

SPORTS

1. FIFA:
Service provided to or By FIFA and its subsidiaries Related to any Event under FIFA : U-17 World-Cup,
2017. (Hosted in India) will be Exempted.

FIFA
(1) Service TO FIFA Service BY FIFA

2. FIFA (Woman’s):
Service provided to or BY FIFA and its subsidiaries Related to any event under FIFA U-17 women’s
World-Cup 2020 (to be hosted in INDIA) will be Exempted.

3. SPONSORSHIP:
- Service by way of sponsorship of sporting events.
- Organised by Recognised body.
- will be Exempted.

6.9
6.9
CA
CA Rajkumar
Rajkumar
 Exemption Ch.6

Fund= Sponsorship Fees

(3)
(Supplier) TATA

Sponsorship of Sporting Events

Sponsorship Service
GST= Exempted

4. INDIVIDUAL’s SERVICE:
- Service of Individuals as a Player, referee, umpire, coach or team manager for participation in a sporting
event.
- Organised By a Recognised Sport Body (eg. BCCI)
- Moreover service By one Recognised Sports Body to another Recognised Sports Body will Also be
Exempted.

(4) Player / Umpire / Recognised Sports Recognised Sports

Coach / Referee Body Body
GST= Exempted

GST= Exempted IPL Franchisee

(Not a Recognised Sports Body)

GST= Taxable

GOVERNMENT

1. Article 243G/W
- Service as specified under Article 243 G/W (e.g. Land Consolidation, Urban Town Planning, Public
Health etc.) provided By “Governmental Authority” will be Exempted.

- Service as specified under Article 243 G/W as Pure Service/Composite Service (having service portion
atleast 75%) provided By any person to CG/SG/LA/Government ENTITY will be Exempted.

6.10
CA Rajkumar
Ch.6 Exemption

(1) Services fall under Article no. 243 G/W: Land Reform, Land Consolidation, Urban Town Planning, Public
Health, Cattle Pond, Street light, Parking lots, Bus stop, Road and bridges, water supply, Fire services etc

* Pure Services (100%) Exempted CG/SG/LA/UT Services under Article: Not a supply
Article: 243 G/ W 243 G/W Given by..
GIVEN TO…
* Composite service (At
least 75% Service)
GIVEN TO…

* Pure Services (100%) TAXABLE Governmental Services under Article: Exempted

Article: 243 G/ W Authority/ 243 G/W Given by..
GIVEN TO… Government Entity
* Composite service (At
least 75% Service)
GIVEN TO…

Circular No. 153/09/2021: GST on milling of wheat into flour or paddy into rice for distribution by
State Governments under PDS
Question. Whether composite supply of service by way of
Milling of wheat into wheat flour, along with fortification, or paddy into rice
By any person to a State Government for distribution of such wheat flour under Public Distribution System
Is eligible for exemption under SN 3A (Composite supply to Govt etc under article no. 243G/W) of N/N
12/2017?
Answer.
Where the value of goods supplied in such Then said entry No. 3A would apply to composite
composite supply (goods used for fortification, supply of milling of wheat and fortification thereof
packing material etc) does not exceed 25% of by miller, or of paddy into rice,
the value of composite supply.

Where value of goods supply in such a composite In such case the supply of service by way of milling
supply exceeds 25%. of wheat into flour or of paddy into rice, is not
eligible for exemption hence taxable.

So It is a matter of fact as to whether the value of goods in such composite supply is up to 25% or more
and accordingly exemption will work on case-to-case basis. Circular No. 153/09/2021

Q. Taxability of sanitation and conservancy services supplied to Army and other Central and State
Government departments. Note: The same is specified under Article 243G/W.

Ans. It is clarified that if such services are procured by Indian Army or any other Government Ministry /
Department which does not perform any functions listed in the Article 243G/W in the manner as a local
authority does for the general public, the same are not eligible for exemption. [Circular No. 177/09/2022]

6.11
6.11
CA
CA Rajkumar
Rajkumar
 Exemption Ch.6

2. GOVERNMENT SERVICE (Except PVT):

* Service provided by CG/SG/UT/Local Authority:
- to Non-Business Entity will be Exempted.
- to Business Entity will be taxable. (Unless otherwise specified elsewhere)
* Moreover following will be taxable as follows:
(a) - Service By Department of Post
- By way of speed posts, Express Parcel Post, Life Insurance service, Agency Service.
- to Non-Government will be taxable.
(b) Service By government in Relation to Aircraft/Vessel (in or outside the port or Airport) will be Taxable.
(c) Service by Government by way of transportation of Goods/Passenger will be taxable.

3. GARIB BUSINESS ENTITY:

- Service by CG/SG/UT/Local Authority.
- to a Business Entity having Aggregate turnover in PFY only upto threshold limit.
- will be Exempted.
Note: Sub-Point a/b/c/of Point (2) will Remain Same.

4. GOVERNMENT TO GOVERNMENT:
- Service provided by CG/SG/UT/Local Authority.
- to another CG/SG/UT/Local Authority.
- will be exempted.
Note: Sub-Point a/b/c/of Point (2) will Remain Same.

5. SMALL VALUE GOVERNMENT SERVICE:

- Service provided by CG/SG/UT
- Where the value of such service not more than `5000.
- In case of continuous supply of service (a service having life of more than 3 month & having periodic
payment schedule) limit of `5000 will be computed on the basis of a Financial year i.e. value in Financial
year is upto `5000 then the service will be exempted.
Note: Sub-Point a/b/c/of Point (2) will Remain Same.

6. GOVERNMENT GRANT

- Service By “Government Entity”

- To CG/SG/UT/LA
- Where consideration received in Form of Grant.
- Then it will be Exempted.

6.12
CA Rajkumar
Ch.6 Exemption

Government Services

To Non-Business Entity P.V.T. To Business Entity To Govt. Departments

GST=Exempted GST=Exempted

By Post Office By Govt. Dept. By Govt. Dept. in Business Entity Business Entity
In relation to Vessel/ relation to transportation (Unregistered) (Registered)
GST=Taxable
Aircraft of Goods & Passengers GST=Exempted
GST=Taxable GST=Taxable

Because of Common Competition between Low Value Service High Value Service
Govt. & Private players. So to provide equal (Upto 5̀,000) (Above 5̀,000)
Field, above Govt. services are liable to GST GST=Exempted GST=Taxable

Note: Business Entity =“Jo Business Kare” (small / big)

(Individual / Company/ Partnership firm, etc)

Newly Inserted: Services by the Department of Posts by way of post card, inland letter, book
post and ordinary post (envelopes weighing less than 10 grams) will be exempted.

Circular No. 190/02/2023

Applicability of GST on accommodation services supplied by Air Force Mess to its personnel:
All services supplied by Central Government, State Government, Union Territory or local authority to any
person other than business entities (Except few specified services such as services of postal department,
transportation of goods and passengers etc.) are exempt from GST.

It is hereby clarified that accommodation services provided by Air Force Mess and other similar messes,such
as, Army mess, Navy mess, Paramilitary and Police forces mess to their personnel or any person other than a
business entity are covered under above exemption.

Provided the services supplied by such messes qualify to be considered as services supplied by Central
Government, State Government, Union Territory or local authority.

7. LONGTERM LEASE

- Service By S.G.I.D.C./U (State Government Industrial Development Corporation or by other Entity having
20% or more ownership of Government.
- Service of Granting Long Term Lease (30 years or more) of Industrial plots or plot for Development of
Infrastructure for Financial Business.

6.13
6.13
CA
CA Rajkumar
Rajkumar
 Exemption Ch.6

(7) Long Term Lease (30 years or more)

Government (100%) Long Term Lease of 30 years or more

Other entity having 20% GST=Exempted

or more ownership in Govt.

Long term Lease Service of industrial plots or plots for development of Upfront Periodic
infrastructure for financial business and given by Payment Rent
State Government Industrial Development Corporations or Undertakings Exempted Taxable

Entity in which CG/SG/LA/UT have at least 20% share Exempted Taxable

Entity in which CG/SG/LA/UT have less than 20% share Taxable Taxable

8.SPECTRUM:
- Service by CG/ SG/ UT/ LA
- By way allotting spectrum to Business Entity,
- Prior to 01.04.2016
- will be exempted.

(8) Satellite Phase I Phase II Phase III

Upto 31/3/16 Upto 30/06/17 w.e.f.01/07/17

Huges No Tax on Spectrum liable Spectrum liable
Spectrum to pay Service Tax to pay GST

Studio (Delhi) Centre (Bombay) Question: What if any of the amount

(A+V) belonging to Phase I received in Phase III?
- Whether liable to GST?

5G
West East
4G UP UP
3G
2G
1G Dept. of Telecom
100MB
200MB International Biddings

Airtel/ JIO/ HUGES/ TATA etc (Wholesaler)

License = Spectrum = 20Years = 2̀0,000 Cr.

* Full Payment (Single)
(OR)
* Instalment payment
(with interest)

6.14
CA Rajkumar
Ch.6 Exemption

9. INDIAN RAILWAY:
- Services by Indian Railway Finance Corporation.
- By way of Leasing of Assets (e.g. Wagon, Coaches, Locos etc.)
- to Indian Railways.
- will be exempted.

10. GOVERNMENT TESTING ETC.:

- Service provided by the CG/SG/UT/Local Authority,
- By way of "Registration Under any Law", Testing, Calibration, Safty check or Certification Relating to
Safety of workers/consumers/public at large Including Fire License.
- Moreover service by way of Licensing, Registration and Analysis or testing of Food Samples supplied by
FSSAI to food Business Operator.

11. GST PORTAL:

Service provided by GSTN to CG/SG/UT for implementation of GST will be exempted.

12. NON-PERFORMANCE:
- On Cancellation (Non-Performance) of Government Contract,
- consideration in the form of fines/liquidated damages payable to CG/SG/UT/Local Authority
- will be exempted from GST.

13. AGRICULTURE:
- Service by CG/SG/UT/Local Authority by way of "assignment of right" to use Natural Resources.
- to Individual Farmer.
- For cultivation of Plant/Rearing of animals For Food, fibre, raw material etc. (Except Horse)
- will be exempted.

Service by way of Assignment of Farmer

(13) Government
Right to use Natural Resources (Recipient)
(Supplier)

GST=Exempted

14. COAL MINE:

- Service By CG/SG/UT/Local Authority.
- By way of "assignment of Right" to use natural Resources.
- Prior to 01.04.2016.
- will be exempted

6.15
6.15
CA
CA Rajkumar
Rajkumar
 Exemption Ch.6

(14) Natural Resources (Mining) Phase I Phase II Phase III

Upto 31/3/16 Upto 30/06/17 w.e.f.01/07/17

No Tax on Mining liable Mining liable

Mining to pay Service Tax to pay GST

Question: What if any of the amount belonging to

Phase I received in Phase III? Whether liable to GST?
Answer: Exempted

15. Merchant Overtime Fee (MOT):

- Service By CG/SG/UT/Local Authority.
- By way of "Deputing" Officers after Office hour or on holidays.
- For Inspection of container stuffing etc. in Relation to Import-Export Cargo.
- On Payment of Merchant Overtime Fee
- will be exempted.

(15) Customs Port Importer / Exporter

Service by Customs Dept., during Non-Office

Hours (or) on holidays & Consideration is called
Merchant Overtime Fee
GST=Exempted

Customs Officer

Salary & Over time

Salary = NO GST

16. RTI:
Service By way of RTI will be Exempted from GST.

(16) RTI

Fee= 1̀0
GST=Exempted

17. ERCC:
- Services supplied by a State Government to Excess Royalty Collection Contractor (ERCC)
- by way of assigning the right to collect royalty on behalf of the State Government on the mineral
dispatched by the mining lease holders
- will be exempted.

6.16
CA Rajkumar
Ch.6 Exemption

(17)
Contract of Mining
State Lease Mining
Government Holder
Consideration

(1) Fixed Sum Payable to State Government / Fixed Royalty:

Fixed Sum= 2̀,000 Crore
ÜIs it a Service? = Yes
ÜIs it liable to GST? = Yes (Under RCM)

AND

(2) Variable Sum Payable to State Government / Excess Royalty

Certain % as Excess royalty payable to State Govt.
(If mining is more than 50,000 Ton)
ÜIs it a Service? = Yes
ÜIs it liable to GST? = Yes (Under RCM)

Given contract / Right to Mr. A [ERCC-IIIrd This variable amount paid by XYZ Ltd. To IIIrd
Party] for monitoring the contract. Mr.A has right Party ON BEHALF OF STATE GOVT. on
to collect excess royalty amount from XYZ Ltd. actual basis-
On actual basis and will pay Fixed Sum of 2̀.5 Cr. State Govt. A/c Dr. XXXX
To State Govt. To Bank A/c XXXX

18. GUARANTEE BY GOVT.

- Service By CG/SG/UT
- to Government Undertaking or PSU's [Public sector undertaking]
- By way of guarantying the Loans.
- taken by Government undertaking or PSU's
- will be exempted.

Government Department Government Undertaking

(Supplier) Collect charges for giving Guarantee (or) PSU (Recipient)

@ 1% = `100 Crores
Service = YES
Supply = YES GST=Exempted
Bank

Guarantee for loan Loan 1̀0,000 Crore

To Government Undertaking
Or PSU

6.17
6.17
CA
CA Rajkumar
Rajkumar
 Exemption Ch.6

AGRICULTURE

1. Electricity Connection
- Service supplied by “Electricity Distribution Utility (e.g. Electricity Exchange)
- By way of construction, erection, commissioning or Installation of Infrastructure.
- for Extending Electricity distribution Network.
- upto the tube-well of the farmer or Agriculturist for Agriculture use
- will be exempted.

(1)

Electricity
Exchange

Providing INFRA upto Tube-well of Farmer for Agriculture purpose

Charges = 5̀0,000 / 6̀0,000

GST=Exempted

2. RICE:
- Service By way of loading, unloading, packing, storage/warehousing of Rice
- will be Exempted.

(2) Service of Loading / Unloading / Packing/

Storage of Rice

Mr. X KRBL
(Supplier) (Recipient)

GST=Exempted

3. MIINOR FOREST PRODUCE:

- Service by Way of warehousing of minor Forest Produce will be Exempted.

4. WAREHOUSING:
- Services by way of storage or warehousing of cereals, pulses, fruits and vegetables will be Exempted
- Service of ware housing/storage of
- Cereals, pulses, fruits, Nuts and Vegetables, spices copra, sugarcane, jaggary, Raw Vegetables, Fibre
(such as cotton, flex, jute etc.) Indigo, unmanufactured tobacco, betel NUTS, Tendu Leaves, Coffee & tea
will be Exempted

6.18
6.18
CA Rajkumar
Ch.6 Exemption

(3) & (4)

Minor Forest Produce

Warehouse Mr. X
Owner (Recipient)
(Supplier)

Cereals, Pulses, Fruits, Vegetables,

GST=Exempted

Q. Representations have been received regarding applicability of GST exemption on the service of storage
or warehousing of cotton in baled or ginned form.

Ans. Accordingly, it is clarified that service by way of storage or warehousing of cotton in ginned and or
baled form is taxable WEF 18/07/2022. [Circular No. 177/09/2022]

5. ELECTRICITY
- Transmission or Distribution of Electricity
- by transmission or distribution utilities (eg. Power Grid, Electricity Exchange, Electricity Companies) -
will be Exempted.

(5) Electricity
Produce
(Power Grid)

Transmission or Distribution of Electricity by Authorised person = GST=Exempted

Meter Charges / Line shifting charges / Duplicate Bill, etc. = GST=Taxable
Electricity Duty / Taxes = YES

Question: What if Mr. X (Not an Authorised person to distribute electricity) set up an Electricity
Generator (or) a Solar Plant, and distribute electricity?

Answer: GST = Yes, Mr. X will be liable to GST.

Electricity Duty= No, Mr. X is not liable to Electricity Duty.

6. FUMIGATION:
- Service by way of fumigation in a warehouse.
- where agriculture produced are stored
- will be Exempted.

6.19
6.19
CA
CA Rajkumar
Rajkumar
 Exemption Ch.6

(6) Fumigation in a warehouse (Where agriculture

produce are stored)

GST=Exempted

7. AGRICULTURE RELATED
Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of
horses, forfood, fibre, fuel, raw material or other similar products or agricultural produce by way of-
(a) Agricultural operations directly related to production of any agricultural produce including
cultivation,harvesting, threshing, plant protection or testing;
(b) Supply of farm labour;
(c) 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;
(d) Renting or leasing of agro machinery or vacant land with or without a structure incidental to
its use;
(e) Loading, unloading, packing, storage or warehousing of agricultural produce;

(f) Agricultural extension services;

(g) Services by any Agricultural Produce Marketing Committee or Board or services provided by
a commission agent for sale or purchase of agricultural produce.
(h) Services by way of fumigation in a warehouse of agricultural produce.

Services Related to….

Agricultural Processing at Loading/ packing/ Commission agent

Operations agriculture farm Storage/ etc Service

Supply of Farm Renting of Agro Agricultural Extension Fumigation in

Labour Machinery/Land Service warehouse

GST=Exempted

6.20
CA Rajkumar
Ch.6 Exemption

8. JOBWORK
- Carrying out “An Intermediate Production Process”.
- as Job Work
- In Relation to Cultivation of plant & Rearing of animals (Except horse),
And agriculture produce
- will be exempted.

Testing Lab (Job Work)

Farmer
Service of Testing Of Agriculture/
Agricultural produces

Consideration

GST=Exempted

Question. Whether custom milling of paddy by Rice millers is liable to GST or is exempted under
Notification Number 12/2017.

Answer. It is clarified that milling of paddy into rice is not eligible for exemption .Therefore, it is hereby
clarified that milling of paddy into rice on job work basis, is liable to GST at the rate of 5%, on the processing
charges (and not on the entire value of rice).

Rice Mill (Supplier) Mr. X (Recipient)

Paddy

Rice

Consideration

9. INSEMINATION
- Service of Artificial Insemination.
- of Live Stock (except horse)
- will be Exempted.

10. SLAUGHTERING
Service of Way of Slaughtering of Animals

11. FRUITS & VEGETABLES

- Services by way of pre-conditioning, precooling, ripening, waxing, retail packing, labelling of fruits and
vegetables
- which do not change or alter the essential characteristics of the said fruits or vegetables
- will be Exempted.

6.21
6.21
CA
CA Rajkumar
Rajkumar
 Exemption Ch.6

12. NCCCD
- Service Provided by “National Centre for cold chain development.
- By way of “Cold Chain Knowledge” Distribution
- will be Exempted.

ENTERTAINMENT/ENTRY FEES

1. ZOO & PROTECTED MONUMENTS:

- Admission/Entry fees of a

- Museum, National Park, Wild Life Sanctuary, Tiger Reserve, ZOO and Protected Monuments

- will be exempted.

(1) ZOO / National Park Etc. Protected Monuments

Entry Fees

GST=Exempted

2. ART, CULTURE, SPORTS

- “Services by way of right to admission to-
(a) Recreational activities relating to arts or culture, by an individual, or
(b) Sports by charitable entities registered under Section 12AA /AB of the I. Tax Act.

- will be Exempted.

3. ENTERTAINMENT
“Services by way of right to admission to-
(a) circus, dance, or theatrical performance including drama or ballet;

(b) award function, concert, pageant, musical performance or any sporting event other than
a recognised sporting event;

(c) Recognised sporting event;

(d) Planetarium, where the consideration for right to admission to the events or places as
referred to in items (a), (b), (c) or (d) above is not more than `500 per person.

6.22
6.22
CA Rajkumar
Ch.6 Exemption

(2)
MAZA

Amusement Entertainment

(Active Mode) (Passive Mode)

Specified Others
Entertainment
Horse riding/ Event
Water park, etc.

Circus/Dance/Theatre, Movies, etc.

Award Function, Pegent,
Recognised Sporting event,
Planetarium (upto 5̀00 per person)

GST=Taxable

GST=Taxable

GST=Exempted

4. FIFA (MEN/WOMEN)
- Entry Fee (Ticket to FIFA Event (U-17 World Cup, whenever rescheduled)
- will be exempted.

5. FOLK/CLASICAL ART

- Service by Folk/Classical Artist

- By Way of Folk/Classical Performance
- In Relation of “music”/Dance/Theatre
- Where consideration charged is not more than `1,50,000/-
- will be exempted.

NOTE: Where such artist provides service as Brand Ambassador then it will be taxable.

6.23
6.23
CA
CA Rajkumar
Rajkumar
 Exemption Ch.6

(5) Folk Art (Singing/ Dance/ Theatre) Classical Art

Service of Artist (If Consideration upto 1̀,50,000 per performance)

GST=Exempted

Note: If such artist provides service as Brand Ambassador,

GST= Taxable

RENTING, ACCOMODATION @ IMMOVABLE PROPERTY

1. CONSTRUCTION (PMAY):
Services provided by way of
Ü 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
Ü Pertaining to the beneficiary-led individual house construction or enhancement

Ü Under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana.

{ {
(1)
Goods: (Cement/ Iron Rods/ Etc.) = Always Taxable
Services: (Construction Services) =

XYZ Ltd.
(Builder) Government
(Supplier) (Recipient)

Construction service provided on-

• Small Houses
• Under PM Awaas Yojna
• EWS: Subsidy: 2̀.67 Lakhs

GST=Exempted

6.24
6.24
CA Rajkumar