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List of New Service Exemptions by 25th GST Council Meeting Dated 18.01.2018

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-
·         exemptions;
·         changes in GST rates;
·         ITC eligibility criteria;
·         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.

Exemption from GST/IGST for certain services
The GST Council recommended exemption 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.


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