Exemptions under GST

Last Update Date : May 04, 2019
Estimated Read Time: 4 min

The taxable activity under GST Act is of supply of goods and services both. The scope of the term is so wide that it covers all the activities. Thus, to keep goods and services out of the ambit of taxation, an exemption is provided.

Goods Exempted under GST

Some goods are kept under the 0% or nil GST rate so as to provide some benefit to the masses.

You can find the complete list of the goods that are exempted under GST here.

List of Services Exempted under GST

  • Services by Government: Services provided by the Central Government, State Government, Union territory or local authority excluding the following services
  1. services by the Post Department by way of speed post, express parcel post, life insurance, and agency services provided to a person other than the Central Government, State Government, Union territory;
  2. services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
  3. transportion of goods or passengers; or
  4. any service, other than services covered under entries (a) to (c) above, provided to business entities
  • Services by way of renting of residential dwelling for use as residence
  • Services by a hotel, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below Rs 1,000 per day or equivalent
  • Service of transportation of passengers, with or without accompanied belongings, by
  1. railways in a class other than first class or an air-conditioned coach
  2. metro, monorail or tramway;
  3. inland waterways;
  4. public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and
  5. metered cabs or autorickshaws (including e-rickshaws)
  • Services by way of transportation by rail or a vessel from one place in India to another of the following goods
  1. relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap, defence or military equipment’s; newspaper or magazines registered with the Registrar of Newspapers, railway equipments or materials, agricultural produce
  • Services by way of access to a road or a bridge on payment of toll charges.
  • Transmission or distribution of electricity by an electricity transmission or distribution utility.
  • Services by the Reserve Bank of India.
  • Services by the Employees’ State Insurance Corporation (ESIC) to persons governed under the Employees’ State Insurance Act, 1948
  • Life Insurance schemes under Pradhan Mantri Yojna
  • Services by way of the collection of contribution under any pension scheme of the State Governments.
  • Services by a veterinary clinic.
  • Services by way of collecting or providing news by an independent journalist, Press Trust of India or United News of India
  • Services of public libraries by way of lending of books, publications or any other knowledge-enhancing content or material.
  • Services provided by the Goods and Services Tax Network to the Central Government or State Governments or Union territories for implementation of Goods and Services Tax.
  • Services by way of slaughtering of animals.
  • Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables
  • Services by a foreign diplomatic mission located in India.
  • Services by a specified organisation in respect of a religious pilgrimage facilitated by the Ministry of External Affairs, the Government of India, under bilateral arrangement.
  • Services provided by the Central Government, State Government, Union territory or local authority by way of issuance of passport, visa, driving license, birth certificate or death certificate.
  • Services provided
  1. by an educational institution to its students, faculty and staff;
  2. to an educational institution, by way of transportation of students, faculty and staff or catering or house-keeping services performed in such educational institution or services relating to admission or conducting of examination.
  • Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets.
  • Services by an artist by way of a performance in folk or classical art forms of music, ordinance, or theatre, if the consideration charged for such performance is not more than Rs 1,50,000. However, the exemption shall not apply to service provided by such artist as a brand ambassador.
  • Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo.
  • Supply of service provided by Fair Price Shops to Central Government by way of sale of wheat, rice and coarse grains under Public Distribution System (PDS) against consideration in the form of commission or margin have been exempted from CGST
  • Supply of services by way of the right to admission to the events organised under FIFA U- 17 World Cup 2017 have been exempted from CGST
  • Supply of services associated with transit cargo to Nepal and Bhutan (landlocked countries) have been exempted from CGST
  • Supply of service by way of access to a road or a bridge on payment of annuity has been exempted from GST
Focus on your business, not GST. Leave that to H&R Block experts.

Ever since GST has been implemented, people are struggling to make sense out of it. Moreover, the list of goods and services that are exempted under GST has been changed for a few times now. If you want to know more about the rates of GST on different goods and services, you can post your query on Tax Forum and our GST experts will provide an effective reply to it.

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CA Chetan Shinde
CA Chetan Shinde
Chetan is the Lead Tax Advisor at H&R Block (India) with an experience of almost half a decade in audit and taxation. His professional areas of interest are GST advisory and statutory audit. Apart from taxation, he is passionate about social causes and works extensively towards rural school development and literacy.