Services provided by government under GST are Exempt???

Yes, Any services provided by government under Article 243W of the Constitution are Exempted.

Following are the services which are not exempted Under GST

a. Services by Department of Posts :-

b. Services in relation to Aircraft/Ship :-

c. Transport of goods or passengers :-

(Above services are always taxable irrespective of person & overrules every provision)

d. Any service provided to Business entities with an aggregate T/O of upto Rs.20 lakhs (Rs.10 lakhs in case of a special category State) in the preceding F.Y

(This clause is not applicable for above (a) to (c) services & services by way of renting of immovable property)

e. Services provided by Government Amounting Above RS.5000 (Taxable)-

For the above Clause (a) to (c)services always Taxable

Meaning of Government for the above??

The term ‘Government’ may include the Central Government, State Government, Union territory or local authority or governmental authority.

Transport Services provided by the Government are Exempt from GST??

YES, Transport services provided by the Government to passengers are Exempt & They are :-

  • Railways in a class Except
    • first class; o
    • An air-conditioned coach
  • Metro, monorail or tramway;
  • Inland waterways;
  • Public transport, other than for tourism purpose, in a vessel between places located in India; and
  • Metered cabs or auto rickshaws (including E-rickshaws) are exempt from tax.

Disclaimer:"The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation."

Prepared By

Umesh B

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