The CBIC vide Notification No. 21/2019- (CT Rate) dated September 30, 2019, in order to give effect to the recommendations made by GST Council in their 37th meeting, amended Notification No. 12/2017 (CT Rate) dated June 28, 2017 (“Services exemption notification”) to rationalize or further exempt certain services are as under:
- Services provided by the Central Government, State Government, Union territory or local authority to a business entity with an aggregate turnover of up to “such amount in the preceding financial year as makes it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017 (12 of 2017)” is exempt. Earlier the turnover was specified as “twenty lakh rupees (ten lakh rupees in case of a special category state) in the preceding financial year” which has now been rationalized.
- S. No. 9AA has been inserted in Services exemption notification to exempt “Services provided by and to FIFA and its subsidiaries directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020 to be hosted in India”.
- Amendment has been brought under S. No. 14 of Services exemption notification to clarify that services by way of residential or lodging purposes, having value of supply of a unit of accommodation below or upto one thousand rupees per day is exempt.
- Condition to S. No. 19A/ 19B of Services exemption notification has been amended to extend the exemption of services by way of transportation of goods by an aircraft/ vessel from customs station of clearance in India to a place outside India till September 2020. Earlier it was exempted only upto September 2019.
- S. No. 24B has been inserted in Services exemption notification to exempt “services by way of storage or warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee and tea”.
- S. No. 29B has been inserted in Services exemption notification to exempt “services of life insurance provided or agreed to be provided by the Central Armed Police Forces (under Ministry of Home Affairs) Group Insurance Funds to their members under the Group Insurance Schemes of the concerned Central Armed Police Force”.
- S. No. 35 of Services exemption notification has been amended to exempt services of general insurance business provided under “Bangla Shasya Bima” scheme.
- Services provided by:–
- an arbitral tribunal,
- a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services,
- a senior advocate by way of legal services,
to inter-alia a business entity with an aggregate turnover of up to “such amount in the preceding financial year as makes it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017 (12 of 2017)” is exempt. Earlier the turnover was specified as “twenty lakh rupees (ten lakh rupees in case of a special category state) in the preceding financial year” which has now been rationalised.
- S. No. 82A has been inserted in Services exemption notification to exempt “Services by way of right to admission to the events organized under FIFA U-17 Women’s World Cup 2020”.
Note:
- This Notification is effective from October 01, 2019.
- Similar Notifications are issued under UTGST and IGST Law.
In addition, “Services provided by an intermediary when the location of both supplier and recipient of goods is outside the taxable territory”, subject to certain conditions, has been exempted by way of additional amendment in IGST notification.
Read More at:
Central Tax (rate) Notification: http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-21-2019-cgst-rate-english.pdf;jsessionid=74B97AA18E3679FCD8CDD9115A5D5338
Union Territory Tax (rate) Notification: http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-21-2019-utgst-rate-english.pdf
Integrated Tax (rate) Notification: http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-20-2019-igst-rate-english.pdf;jsessionid=44F95F873AB606A0213E1E61B62DCE4B