The CBIC vide Notification No. 07/2021 Central Tax (Rate) dated September 30, 2021 has further amended Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017 (“Services exemption notification”), in order to adhere to the recommendations of 45th GST Council meeting held on September 17, 2021 as under:
1. Entry No. 1: Services by an entity registered under section 12AA of the Income-tax Act, 1961 by way of charitable activities. Now Section 12AB has also been inserted.
2. Entry No. 9AA: Services provided by and to Fédération Internationale de Football Association (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 whenever rescheduled.
3. After serial number 9AA , S. No. 9AB is being inserted to exempt following services as under
|
Sl. No. |
Chapter, Section, Heading, Group or Service Code (Tariff) |
Description of Services |
Rate (per cent.) |
Condition |
|
9AB |
Chapter 99 |
Services provided by and to Asian Football Confederation (AFC) and its subsidiaries directly or indirectly related to any of the events under AFC Women’s Asia Cup 2022 to be hosted in India |
NIL |
Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under AFC Women’s Asia Cup 2022 |
4. Against serial numbers 9D and 13, in column (3), after the figures and letters “12AA”, the word, figures and letters “or 12AB” shall be inserted;
a. Amended S. No. 9D: “Services by an old age home run by Central Government, State Government or by an entity registered under section 12AA or 12AB of the Income-tax Act, 1961 (43 of 1961) to its residents (aged 60 years or more) against consideration……..”
b. Amended S. No. 13: “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 or 12AB of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) or a trust or an………..”
5. Entry No. 19A and 19B: Validity of GST exemption on transport of goods by vessel and air from India to outside India is extended upto September 30, 2022. Earlier it was exempted till September 30, 2021.
6. Entry No 43 omitted: Exemption withdrawn on “Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by the Indian Railways Finance Corporation to Indian Railways.”
7. Entry No. 61A inserted: Services by way of grant of National Permit to goods carriages on payment of fee is exempted. Earlier it was taxable at 18%.
8. Entry No. 72: Skill Training for which Government bears 75% or more of the expenditure. Presently exemption applies only if Government funds 100%.
9. Against serial numbers 74A and 80, in column (3), after the figures and letters “12AA”, the word, figures and letters “or 12AB” shall be inserted;
i. Amended S. No. 74A: “Services provided by rehabilitation professionals recognised under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA or 12AB of the Income-tax Act, 1961
ii. Amended S. No. 80: “Services by way of training or coaching in recreational activities relating to-
a. arts or culture, or
b. sports by charitable entities registered under section 12AA or 12AB of the Income-tax Act.”
10. Entry 82B inserted: Services by way of right to admission to the events organised under AFC Women’s Asia Cup 2022. Earlier it was taxable at 18%.
Note: This Notification is effective from October 01, 2021.
Barring Entry No. 19A and 19B, similar notification has been passed under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”) and all States will issue relevant Notification to give supra changes in Services exemption on similar line.
CGST (Rate) Notification: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-07-2021-2020-cgst-rate.pdf
IGST (Rate) Notification: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-7-2021-igst-rate-english.pdf
UTGST (Rate) Notification: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-07-2021-utgst-rate.pdf
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