ALL ABOUT EXEMPTIONS UNDER GST 

Under GST law, there are various exemptions available for which no GST is payable by the person. Here we will look at all the aspects of exemptions available under GST.

As per Section 11 of CGST Act and Section 6 of the IGST Act, the Govt. by way of notification or section order exempt any class of services from the GST.

The exemption can be provided generally or subject to such conditions as may be prescribed or it may be for goods and services which are specified in the notification.  

The exemption by way of special order can be with regard to circumstances that are of special nature and which is in the public interest. 

Now we take a look at various services that have been exempt so far by way of notifications etc. 

1. Agriculture Related Services

Under agriculture services, the following services have been exempt :

(a) Loading, unloading, packing, storage, or warehousing of rice

(b) All kinds of agriculture-related services such as the cultivation of plants and rearing of animals (except horses)for food, fibre, fuel, raw material or any similar products or agriculture produce by way of : 

(i) agriculture operations including cultivation, harvesting, threshing, plant protection, testing etc.

(ii) Supply of farm labour

(iii) processes which are carried out at agriculture farm which does not change the essential character of agricultural produce

(iv) renting or leasing of vacant land or agro machinery

(v) loading, unloading, storage, packing or warehousing of agriculture produce

(vi) agriculture extension services

(vii) services of fumigation of agriculture produce in a warehouse

(c) Artificial insemination of livestock (other than horses)

(d) Services relating to storage/warehousing of cereals, pulses, spices, fruits, nuts, vegetables, sugarcane, jaggery, cotton, flax, jute, indigo, remanufactured tobacco, beetal leaves, tendu leaves, coffee, and tea.

(e) Warehousing of minor forest produce

2. Charitable and Religious Activities 

Under this category, the following services are exempt from GST : 

(a) All charitable activities carried out by institutions registered u/s 12AA of the Income Tax Act

(b) Services in relating to conducting of Religious ceremonies : 

 

(c) Services relating to renting of premises of religious place owned by an entity registered under section 23AA/10(23)(c)(v) or 10(23)(BBA) of the Income Tax Act. However in following cases, it will not be exempt :

(i) If the charges of room rent are >=1000 per day

(ii) If the charges of renting of premises, hall, mandap, open area etc. is >=10000 per day

(iii) If charges of renting of shops/ spaces for business etc. >=10000 per month

(d) Training/coaching relating to arts/culture in recreational areas or sports by Charitable entities registered under section 12AA of the Income Tax Act. 

(e) Services by Specified organization in respect of a religious pilgrimage i.e. (Haj Committee/KMVN carrying on HAJ yatra/Kailash Mansarovar Yatra)

3. Services relating to Education :

 

Under this category, the following services are exempt from GST : 

1. Services provided by any Educational Institution : 

(a) to its students and staff ;

(b) services relating to conducting entrance exams for a fee

(c) Services in relating to conduct of examination and admission by an Educational Institution;

(d) Supply of online educational journals and periodicals by an educational institution providing services by way of education for obtaining a qualification recognized by any law for the time being in force;

(e) Services provided to an educational institution by way of ;

(i) transportation of students, staff, or faculty;

(ii) catering and mid-day meals schemes sponsored by the Central/State Govt;

(iii) security/cleaning/housekeeping services performed in Educational Institution;

(However, these services are exempt only if they are provided to Educational Institution which is up to higher secondary school or equivalent)