Exemptions under GST
Exemption from taking Registration
The Central Government vide Notification No. 06/2019 – Central Tax dated 29th January,
2019&Notification No. 03/2019
– IT dated 29th January,
2019 has provided
that for the purpose
of exemption from registration by service providers of Jammu & Kashmir, the threshold limit of
aggregate value of supplies, to be computed on all India basis will be 10 lakh rupees.
Notification
to exempt tax on goods or services received from unregistered person rescinded
The Central Government vide Notification No. 01/2019-Central Tax (Rate)
dated 29th January, 2019has rescind the Notification No. 8/2017-CT (R) dated
the 28th June, 2017 which exempts intra-State supplies of goods or services or
both received by a registered person from any supplier, who is not registered, from the whole of the central tax leviable thereon.
Therefore, from 1st Feb, 2019 such transaction has become
taxable in the hands of recipient.
Comment: However, as
per CGST Amendment Act, 2018, Govt. by notification specify a class of
registered persons who shall, in respect of supply of specified categories of goods or services
or both received from an unregistered supplier,
pay the tax on reverse charge basis as recipient of such supply of goods
or services or both whereas no notification in this regard
has been issued yet therefore,
no tax will be liable on such transactions until any notification specifying
categories of goods or services or both come into force.
Exemption from Registration not applicable to specified Job workers
The Central Government vide Notification No. 02/2019
– Integrated Tax dated 29th
January, 2019 has
provided that the job workers who
are involved in making supply of services in relation to Live poultry i.e fowls
of the species Gallus domestic us, ducks, geese, turkeys and guinea fowls are
compulsorily required to take registration.
Further, it is also provided
that job workers
who are involved
in making supply of services in relation to Jewelers, goldsmiths’ and
silversmiths’ wares and other articles are eligible for exemption from registration where such job workers engaged in making inter-State supply
of services to a registered person.
This notification
will be effective from 1st Feb, 2019.
Exemption from TDS -Supplies made by Government Departments and PSUs to other Government Departments and vice-versa.
Central Government vide Notification No. 73/2018 – CT dt.31st Dec, 2018 notified exemption
to supplies made by Government Departments and PSUs to other Government Departments and
vice-versa from TDS and thus insert the following proviso after the second
proviso, namely:-
“Provided also that nothing in this notification shall apply to the
supply of goods or services or both which takes place between one person to another person specified
under clauses (a), (b),
(c) and (d) of sub-section (1) of section 51 of the said Act.”.
Amendment in exemption list of certain services
The Central Government vide Notification No. 28/2018- CT (R)
dt.31st Dec, 2018 hereby makes the following amendments in the Notification No.12/2017- CT (R),
dt.the 28thJune, 2017, namely:
1. Insertion
of Serial Number 21B: Services
provided by a goods transport agency, by
way of transport of goods in a goods
carriage, to, -
(a) A Department or Establishment of the Central Government or State
Government or Union territory; or
(b) local authority; or
(c) Governmental agencies,
which has taken registration under the Central Goods and
Services Tax Act, 2017 (12 of
2017)only for the purpose of deducting tax under Section 51 and not for making
a taxable supply of goods or services.
Comment: Only GTA services are exempted. Care must be taken
where goods transport services are provided under fixed-price contracts to
these departments.
2. Insertion
of Serial Number 27A: Services
provided by a banking company to Basic Saving Bank Deposit (BSBD) account
holders under Pradhan Mantri Jan Dhan Yojana
(PMJDY).
Comment: This exemption entry is a clear indication
that the said ‘services’ were taxable for the past period and continues
to be taxable in all other cases of account holders. This has been a point
attracting much media in the recent past about services at ‘no charge’ by banks
to account holders.
3. Insertion of
serial number 74A:
Services provided by rehabilitation professionals
recognized under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions,
rehabilitation centers established by Central Government, State Government or
Union territory or an entity registered under section 12AA of the Income tax
Act, 1961 (43 of 1961).
4. Insertion of meaning of “financial institution” in clause (zaa)
“(zaa) “financial institution” has the same meaning as assigned
to it in clause (c) of section 45-I of the Reserve Bank of India Act, 1934 (2
of 1934).”.
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