Chapter 4 - Exemptions under GST

Question 1

Power to grant exemptions under GST is governed by which section?

Answer 1

Section 11

Question 2

What are the ways of granting exemptions under GST ?

Answer 2

1. General
2. Special
3. absolute
4. conditional
5. partly
6. wholly

Question 3

what exemptions are given wrt. to Charitable and religious Activities ?

Answer 3

1. services by an entity registered under section 12AA/ 12AB of income tax act 1961 by way of charitable activities.
2. services by a person by way of conducting any religious ceremony
3. services of renting of precincts of a religious place meant for general public owned or managed by :-
   a. an entity registered under section 12AA/12AB of income tax act 1961
   b. an trust or institution reg under section 10 (23Q/ 23BBA) of income tax act 1961.

provided rent shall be less than the following amounts :-
a. in case of* Rooms* - Rs 1000 per day
b. in case of* premises, halls, mandapams, open area* - Rs 10000 per day
c. in case of shops for commercial purposes - Rs 10000 per month.

4. services by a specified organization in respect of religious pilgrimage facilitated by CG under bilateral agreement.
5. services by way of training or coaching in :-
   a. recreational activities relating to arts, culture by an individual
   b.** sports** by an entity reg under section 12AA/ 12AB of income tax act 1961.

Question 4

What are the exemptions wrt to Agricultural Activities ?

Answer 4

1. Services by way of loading, unloading, packing, storage or warehousing of rice.
2. Services by way of** warehousing** of minor forest produce.
3. Services by way of** storage or warehousing** of cereals, pulses, fruits, nuts, vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibers, indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee, tea.
4. Services by way of fumigation in a warehouse of agricultural produce.
5. Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses for agricultural produce by way of :-
   a. agricultural operations
   b. supply of farm labor
   c.** processes** carried out at an agricultural farm.
   d.** renting or leasing** of agro machinery or vacant land with or without structure intended for agricultural use.
   e. loading, unloading, packaging, warehousing of agricultural produce
   f. agricultural extension services
   g.** fumigation** in warehouse of agricultural produce.
   h. intermediate production process as a job work
6. Services relating to** sale or purchase** of agricultural produce by :-
   a. agricultural produce marketing committee
   b. agricultural produce marketing board
   c. commission agent.
7. services by way of artificial insemination of live stock other than horses.

Question 5

what are the exemptions wrt. Healthcare services

Answer 5

1. Services by veterinary clinics in relation to healthcare of animals or birds.
   2.** healthcare services** by :-
   a) clinical establishments
   b)* Medical practitioner*
   c)* Paramedics*
2. Services by way of transportation of a patient in an ambulance

Notes :-
1. Health care services does not include hair transplant, cosmetic surgery, plastic surgery unless undertaken during the course of a healthcare treatment.
2.** Palliative care** provided to ill patients at their home is covered under healthcare services
3. healthcare services include only** recognized systems of medicine** in india.
4. Renting of rooms to in-patients is exempt only if the rent of such room does not exceed Rs 5000 per day, this limit is not applicable in case of ICU/ICCU/NICU/CCU.
5.** Food supplied** to in-patients becomes composite to that of healthcare services and hence are exempt.
6. Supply of services other than healthcare services such as :-
a)** renting** of shops or auditoriums in an clinical establishment
b) display of advertisements
c) services of like nature
Shall be taxable.