Exemptions under GST: Section 11, CGST Act, 2017

List of Exempted goods:

Refer to the book. Learn any 15 goods for exam purposes.

List of Exempted Services:

Entry 66: Education service

Educational institution:
1. Engaged in pre-school education and education upto 12th standard or equivalent
including international certifications. School may be recognised or unrecognized for
pre-school education.
2. Educational Institutions offering qualifications (University degrees) recognised by any
law in India. This category will not include qualifications / degrees which are recognised
in a foreign country.
3. Offering approved / recognised vocational courses

Case1: Any educational services (including education support services) provided by

educational institutions falling under point 1, 2 and 3 to its students, faculty or staff shall
be exempt from GST. Educational institutions providing services by way of conduct of
entrance examination against an entrance fee shall also be exempt.

For instance, Supply of food and beverages/ transportation service by an educational institution
to its students, faculty and staff (where such service is offered by the institution itself) shall be
exempt.

Case2: Any person supplying following services to an educational institution engaged in

point 1 shall be exempt:-

a.Transportation of students, faculty or staff

B. catering service including mid-day meals sponsored by Central or state govt
C Security services, cleaning and housekeeping services performed in the educational institution

Case 3: Any person supplying services to an educational institution (covered under point 1,
2 and 3) relating to the admission to a course or conduct of examination shall be exempt
from tax.
Case 4: Supply of online journals or periodicals by any person to a higher educational
institution shall be exempt.

Entry 74 Health care services:

Treatment/ consultation charges by a medical practitioner or a medical institution like hospitals,

nursing home, clinics etc in a recognised system of medicine- EXEMPT

Services by paramedic staff- exempt

Ambulance - Exempt

Diagnostic tests including pathology lab services-

EXEMPT

Cosmetic surgery, plastic surgery and hair transplant- TAXABLE . IF such surgeries are
performed to treat an injury, then it will be exempt.

“authorised medical practitioner” means a medical practitioner registered with any of the
councils of the recognised system of medicines established or recognised by law in India and
includes a medical professional having the requisite qualification to practice in any recognised
system of medicines in India as per any law for the time being in force;

“clinical establishment” means a hospital, nursing home, clinic, sanatorium or any other
institution by, whatever name called, that offers services or facilities requiring diagnosis or
treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised
system of medicines in India,

“health care services” means any service by way of diagnosis or treatment or care for illness,
injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and
includes services by way of transportation of the patient to and from a clinical establishment, but
does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore
or to reconstruct anatomy or functions of body affected due to congenital defects, developmental
abnormalities, injury or trauma;

Entry 11: Pure labour contract for construction of a single residential unit ( not being a
part of residential complex) shall be exempt from GST.
Entry 12:

Entry 15: Transportation of passengers

a) Any air travel originating from or terminating at an airport located in Arunachal Pradesh,
Assam, Sikkim, Manipur, Nagaland, Tripura, Meghalaya, Mizoram and Bagdogra in
West Bengal shall be exempt from GST.
b) Non-ac contract carriage: fully exempt
AC contract carriage: Fully taxable
Following shall also be taxable:-
Radio taxis, non ac contract carriage for tourism, conducted tours, charter or hire
c) Non ac stage carriage: fully exempt. AC stage carriage: fully taxable

Entry 17: Transportation of passengers

a. Railways: traveling in any coach other than an ac coach or first class shall be fully
exempt.
FIRST class or ac coach travel is fully taxable.
b. Metro, monorail or trams: Exempt
c. Inland waterways: exempt
d. Public transport in a vessel in India (other than predominantly for tourism purposes):
Fully exempt
e. Metered cabs, auto rickshaws or e-rickshaws: Fully exempt

Entry 23: Toll charges by way of access to a road or a bridge: Fully exempt

Entry 78: Services by an artist by way of performance in classical art form or folk art form
of dance, music or theatre:
If consideration charged for performance is upto Rs. 1,50,000, then it is fully exempt from GST.

Any payment that these artists receive for being a brand ambassador shall be subject to GST.

Entry 79: Services by way of admission to a museum, national park or wildlife sanctuary,
zoo or a tiger reserve: Fully exempt

Entry 81: Services by way of admission to circus, dance or theatrical performance, award
function, concert, musical performance, sporting event or planetarium.
If the consideration charged is upto rs 500 per person then it will be exempt.
Entry 27:
Interest on deposits, loans or advances are exempt from GST.
For example, interest on fixed deposits, interest on savings account, interest on any loan, etc.
shall be fully exempt.

Interest charged on late payment of credit card bills is fully taxable.

Entry 76: Services by way of public conveniences such as provision of facilities of

bathroom, washrooms, lavatories, urinal or toilets.

Entry 73: Services provided by the cord blood banks by way of preservation of stem cells
or any other service in relation to such preservation.

Entry 68: Services provided to a recognised sports body by-

(a) an individual as a player, referee, umpire, coach or team manager for participation in a
sporting event organised by a recognized sports body;
(b) another recognised sports body

Entry 61: Services provided by the Central Government, State Government, Union
territory or local authority by way of issuance of passport, visa, driving licence, birth
certificate or death certificate.

Entry 46: Services by a veterinary clinic in relation to health care of animals or birds

Entry 25: Transmission or distribution of electricity by an electricity transmission or

distribution utility

Services provided by Department of Post by way of speed post, express parcel, agency and
life insurance:
If such service provided to Central govt, state govt, UT and local authority, then it is
exempt.
If such services are provided to any other person, then it is fully taxable.
Entry 45: Legal services (Refer to book)

Entry 54 Agriculture service:

Services relating to cultivation of plants and rearing of all life forms of animals, except the
rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural
produce by way of -
(a) agricultural operations directly related to production of any agricultural produce including
cultivation, harvesting, threshing, plant protection or testing;
(b) supply of farm labour;
(c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting,
drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk
packaging and such like operations which do not alter the essential characteristics of agricultural
produce but make it only marketable for the primary market;
(d) renting or leasing of agro machinery or vacant land with or without a structure incidental to
its use;
(e) loading, unloading, packing, storage or warehousing of agricultural produce;
(f) agricultural extension services;
(g) services by any Agricultural Produce Marketing Committee or Board or services provided by
a commission agent for sale or purchase of agricultural produce.
(h) services by way of fumigation in a warehouse of agricultural produce.

Practice Questions:

1. Discuss whether the following transactions would be subject to GST:-

a. Interest on Fixed deposit: Exempt
b. IIM Lucknow charges Rs. 4,00,000 per company for participating in campus recruitment
to select students for providing job: Taxable
c. Development of course contents for Delhi University against a charge: Taxable
d. Bank draft charges collected by SBI for transferring money from Delhi to Pune: Taxable
e. Transportation of passengers between Port Blair and Havelock in a vessel:
f. Services provided by courier agency
g. Hyderabad uNIVERsity pays Rs. 40,000 to X Ltd for printing of university question
papers: Exempt
h. Renting of agricultural land for Rs. 1,20,000 per month
i. Supply of fresh apples by X Ltd. to a mall in Delhi. Exempt
j. Passenger transport service by radio taxi: Taxable
k. Express parcel service by department of post to Union territory of Daman and DIU.
 l. Supply of prasadam by Shirdi Temple (consideration Rs. 50 per laddoo)
m. Renting of school building to a management school which provides management
education recognised by UGC: Taxable
n. A brand ambassador gets Rs. 10 crores from Tata CLIQ for advertising their new
collection: Taxable
o. Water supply service provided by Delhi Jal Board.
p. Supply of curd to a hotel chain against Rs, 3,50,000
q. Supply of domestic servants for a farmer: Rs. 2,00,000
r. For non-submission of certain documents, Delhi mUNICIPAL cORP charges a fine of
Rs. 2500.
s. Service by way of distribution of electricity: Exempt
t. Free Educational services to poor students of slum area by a charitable institute
u. Supply of gandhi topi by a trader to another trader in Delhi: Exempt
v. Interest on fixed deposit paid by SBI to X Ltd. Exempt
w. X owns a plot of land in Delhi. For construction of single residential unit, labour contract
is given to Y ltd. In another scenario, Y ltd. wll supply material as well as labour to Mr. X
for construction of residential unit.
x. Services by way of public convenience like toilet services, bathroom, washroom provided
by Shulabh toilet
y. IIM A offers MBA Executive development program for working executives against
payment of Rs. 35,00,000 fees.

Q.
1. X supplies farm labour to A Ltd. A Ltd. is in the business of cultivation of roses in
Andhra Pradesh.
2. A charitable trust (registered under Sec 12AA of the Income tax act) provides yoga
training service to residents of South Delhi.
3. Supply of fresh flowers to Taj Mumbai relating to the organisation of a corporate
event: Exempt
4. Supply of khadi yarn/ khadi fabric by KVIC to a dealer in Bhopal (invoice value:
10,50,000): Exempt
5. Renting of agricultural land for Rs. 20,000 per month
6. A charitable trust (registered under Sec 12AA of the Income tax act) provides services
pertaining to preservation of wildlife.
7. X is an ayurvedic doctor. He charges Rs. 800 per sitting from his Indian patients: Exempt
8. X provides warehousing services for storage of potatoes.
9. Interest charged on late payment of credit card bill by HDFC Bank: Taxable
10. A hockey player gets fees from Indian hockey federation for participating in an
international event: Exempt
11. Food provided in an ac restaurant
12. Services provided by Post office by way of express parcel post
13. X Ltd. is in the business of selling advertisement space in billboards near different
airports in the country.
14. Services by way of ordinary post by department of posts
15. Food supplied by the canteen run by a hospital to the in-patients as advised by the
doctors.
16. An individual acts as a referee in a football match organized by Sports Authority of India.
He has also acted as a referee in another charity football match organized by a local
sports club, in lieu of a lump sum payment. Discuss whether any GST is payable on the
activities undertaken by him: Taxable
17. RXL Pvt. Ltd. manufactures a beauty soap with the brand name ‘Forever Young’. RXL
Pvt. Ltd. has organized a concert to promote its brand. Ms. Ahana Kapoor, its brand
ambassador, who is a leading film actress, has given a classical dance performance in the
said concert. The proceeds of the concert worth 1,20,000 will be donated to a charitable
organization. Examine whether Ms. Ahana Kapoor will be required to pay any GST.
18. Examine whether GST is exempted on the following independent supplies of services:
(i) Service provided by a private transport operator to Scholar Boys Higher Secondary
School in relation to transportation of students to and from the school.
(ii) Services provided by way of vehicle parking to general public in a shopping mall.
19. Indiana Engineering College, a recognised educational institution, has conducted an
entrance test examination for various courses run by it and charged entrance fees from the
applicants. Determine whether Indiana Engineering College is liable to pay GST on the
same.
20. Printing services to Delhi University for printing the question papers
21. Honorarium to paper setters and examiners (not on the payrolls of the educational
institution)
22. Rent paid for exam centres taken on rent like schools etc., for conducting examination
23. Vedanta Hospital, Gurgaon has its own restaurant – Annapurna Bhawan - in the basement
which supplies food to its in-patients (patients admitted in the hospital) as per the advice
of the doctor/nutritionist. Annapurna Bhawan also supplies food to other patients (who
are not admitted) or their attendants or visitors. The food is prepared by the employees of
the hospital and nothing is outsourced to any third-party vendors. Vedanta Hospital is of
the view that all services provided by a clinical establishment are exempt from GST and
thus, it is not liable to pay any tax. You are required to test the correctness of the view
taken by Vedanta Hospital.
24. Indian Institutes of Management (IIM), Indore organizes a placement drive for the
students studying in the campus. Many multinational companies register for the
placement program and pay the registration fee of ` 1,00,000. IIM, Indore is of the view
that such consideration received from multinational companies for participating in the
 placement program is exempt from GST. Explain whether the view taken by IIM, Indore
is correct.
25. Determine whether GST is payable in respect of each of the following independent
services provided by the registered persons:
(1) Fees of ` 10,000 charged from office staff for in-house personality development
course conducted by Mungerilal College providing education as part of a curriculum for
obtaining a qualification recognised by Indian law.
(2) Bus fees of ` 2,500 per month collected from students by Rosemary College
providing education as part of a curriculum for obtaining a qualification recognised by
Indian law.
(3) Housekeeping service provided by M/s. Clean Well to Himavarsha Montessori school,
a play school, for cleaning its playground and classrooms - ` 25,000 per month.
(4) Info link supplied ‘Tracing Alphabets’, an online educational journal, to students of
UKG class of Sydney Montessori School - ` 2,000.