List of New Service Exemptions by 25th GST Council Meeting Dated 18.01.2018
The 25th GST Council meeting was held at New
Delhi on 18.01.2018. The said meeting was chaired by Shri Arun Jetley,
the Hon’ble Finance Minister. The decisions relating to-
Delhi on 18.01.2018. The said meeting was chaired by Shri Arun Jetley,
the Hon’ble Finance Minister. The decisions relating to-
·
exemptions;
exemptions;
·
changes in GST rates;
changes in GST rates;
·
ITC eligibility criteria;
ITC eligibility criteria;
·
Rationalization of rates;
Rationalization of rates;
were taken by the Council in the said
meeting. However the said decisions will be given effect to through Gazette Notifications/circulars which shall have
the force of law.
meeting. However the said decisions will be given effect to through Gazette Notifications/circulars which shall have
the force of law.
Exemption from GST/IGST for certain services
The GST Council recommended exemption
from GST for the following services-
from GST for the following services-
- Viability Gap Funding for a period of 3 years
from the date of commencement of RCS airport from the present period of
one year; - Supply of services by way of providing
information under RTI
Act, 2005; - Legal services provided to Government, local
authority, Governmental Authority and Government Entity; - Transportation of goods from India to a place
outside India by air; (available up to 30.09.2018) - Transportation of goods from India to a place
outside India by sea and provide that value of such service may be
excluded from the value of exempted service for the purpose of reversal of
ITC (available up to 30.09.2018); - Naval Insurance Group Fund by way of Life
Insurance to personnel of Coast Guard under the Group Insurance Scheme of
the Central Government retrospectively from 01.07.2017; - Exemption to IGST payable under section
5(1) of IGST
Act on supply of services covered by item
5(c) of Schedule II of CGST
Act, to the extent of aggregate of the duties and taxes levaible under
section 3(7) of Customs Tariff Act read with sections 5 and 7 of IGST
Act on part of consideration declared under section
14(1) of the Customs
Act, towards royalty and licence fee includible in transaction
value as specified under Rule 10(c) of the Customs Valuation
(Determination of Value of Imported Goods) Rules, 2007. - Enhance exemption limit of ₹
5,000/- per month to ₹
7500/- per month in respect of services provided by Resident Welfare
Association (unincorporated or nonprofit entity) to its members against
their individual contribution. - Dollar denominated services provided by
financial intermediaries located in IFSC SEZ, which have been deemed to be
outside India to a person outside India. - Services by government or local authority to
governmental or governmental entity, by way of lease of land and supply of
land or undivided share of land by way of lease or sub lease where such
supply is a part of specified composite supply of construction of flats
etc., and to carry out suitable amendment in the provision relating to
valuation of construction service involving transfer of land or undivided
share of land, so as to ensure that buyers pay the same effective rate of
GST on property built on leasehold and freehold land. - Pure services provided to Government entity;
- To expand pure services exemption to include
composite supply involving predominantly supply of services i.e.,up to 25%
of supply of goods; - Services relating to admission to, or conduct
of examination provided to all educational institutions; - Services by educational institution by way of
conduct of entrance examination against consideration in the form of
entrance fee; - Reinsurance services in respect of insurance
schemes exempted; - To increase threshold limit for exemption for
all theatrical performances from ₹ 250/- to ₹
500/- per person and to the services by way of admission to a planetarium; - Services by way of fumigation in a warehouse
of agricultural produce; - Subscription of online educational
journals/periodicals by educational institutions who provide degree
recognized by any law from GST. - Renting of transport vehicles provided to a
person providing services of transportation of students, faculty and staff
to an educational institution providing education up to higher secondary
or equivalent. - Services provided by an to
FederationInternationale de Football Association and its subsidiaries
directly or indirectly related to any of the events under FIFA U – 20
World Cup in case the said extent is hosted by India. - Government’s share of profit petroleum from
GST and to clarify that cost petroleum is not taxable per se.
