GST Exemptions List – Latest Details

Last Updated at: November 12, 2020
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GST Exemptions List – Latest Details
The Andhra Pradesh bench of the Authority for Advance Rulings (AAR) has recently ruled that coaching classes are not eligible for GST exemption. The bench has ruled that such services do not qualify for tax exemptions mentioned in Entry No 66 of the relevant notifications. 

 

The nature of your business will determine whether you are exempted from paying the goods and services tax. If your business does not involve the sale of goods or provision of services, then you do not have to pay GST. At the same time, agriculturists are exempted from paying GST.

This article is about the GST exemptions under the list of new registrations that are mentioned by the Government of India. GST registrations started on the 1st July 2017. There are some people who have exemptions under GST Registration based on the nature of their business.

As always if you’d like to know more about professional help on startups, registrations or
compliance, browse our services and find our how we do it differently from others.

 

The taxpayers who are exempted from GST Registration are:

      • Agriculturists
      • People falling in Threshold Exemption Limit
      • People making Nil-Rated/ Exempt supplies of goods and services
      • People making Non-Taxable/ Non-GST supplies of goods and services
      • Activities that are neither the  Supply of Goods  nor the  Services
      • People making only supplies that are  covered under the  reverse charge

    Get Online GST Registration

Now let us go over the details of all those people who have been exempted from GST registration:

  • Agriculturists

A person who supplies products from the cultivation from his farm called is called an agriculturist. People working in this sector will be given exemptions from GST Registration. Agro-inputs like seeds, fertilizers, irrigation (electricity is required), machinery and all the other agricultural services are also exempted under GST regime.

  • People falling in threshold exemptions limit

Any business entity which has an annual turnover less of than Rs. 20 lakh is given exemptions from GST registration. But states like Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Arunachal Pradesh, Jammu and Kashmir, Himachal Pradesh and Uttarakhand (special category states) where the threshold limit is Rs. 10 lakh.

People making Nil-Rated/ Exempt supplies

People who are engaged in the business of supplying common items which are in the exemptions list of GST. Some of these are mentioned below:

  • All unprocessed food like wheat, rice, bread, cereals, milk, vegetables, eggs, fish, meat,  salt etc.
  • Travel by train local and sleeper classes
  • Education
  • Healthcare (but not medicines)
  • Lodges and hotels with room rent less than Rs 1,000
  • Children’s colouring /drawing books
  • Sindoor, bindis bangles, etc

People making Non-Taxable/ Non-GST supplies

Certain items do not come under the purview of GST:

  • Petroleum crude and petrol
  • Natural gas
  • Electricity
  • High speed diesel
  • Alcohol for human consumption
  • Aviation turbine fuel

Activities that are neither Supply of Goods nor Services

These include:

  • Services by an employee.
  • Services by a Court or Tribunal.
  • Functions and duties of –
    • MLAs, MPs, Members of Municipalities, Panchayats, Municipalities and other local authorities;
    • People holding any Constitutional Post;
    • People as a Member, Chairperson or a Director in a body.
  • Funeral Services.
  • Sale of building and land.
  • Actionable claims (other than betting, lottery and gambling).

People making only supplies covered under reverse charge

On 19th June 2016 via Notification No. 5/2017, the Central Government has exempted people from obtaining registration who are engaged only in making supplies of taxable goods or services, total tax on which is liable to be paid on the reverse charge basis by the recipient of such goods or services. This notification came into force on 22nd June 2016.

Some businesses manufacture goods or provide services that are not taxable under GST. Many companies and professionals provide services that do not find a place in any of the GST slabs. So, it is vital that you get to know about all the relevant exemptions under the Goods and Services Tax Act.

0

GST Exemptions List – Latest Details

5802
The Andhra Pradesh bench of the Authority for Advance Rulings (AAR) has recently ruled that coaching classes are not eligible for GST exemption. The bench has ruled that such services do not qualify for tax exemptions mentioned in Entry No 66 of the relevant notifications. 

 

The nature of your business will determine whether you are exempted from paying the goods and services tax. If your business does not involve the sale of goods or provision of services, then you do not have to pay GST. At the same time, agriculturists are exempted from paying GST.

This article is about the GST exemptions under the list of new registrations that are mentioned by the Government of India. GST registrations started on the 1st July 2017. There are some people who have exemptions under GST Registration based on the nature of their business.

As always if you’d like to know more about professional help on startups, registrations or
compliance, browse our services and find our how we do it differently from others.

 

The taxpayers who are exempted from GST Registration are:

      • Agriculturists
      • People falling in Threshold Exemption Limit
      • People making Nil-Rated/ Exempt supplies of goods and services
      • People making Non-Taxable/ Non-GST supplies of goods and services
      • Activities that are neither the  Supply of Goods  nor the  Services
      • People making only supplies that are  covered under the  reverse charge

    Get Online GST Registration

Now let us go over the details of all those people who have been exempted from GST registration:

  • Agriculturists

A person who supplies products from the cultivation from his farm called is called an agriculturist. People working in this sector will be given exemptions from GST Registration. Agro-inputs like seeds, fertilizers, irrigation (electricity is required), machinery and all the other agricultural services are also exempted under GST regime.

  • People falling in threshold exemptions limit

Any business entity which has an annual turnover less of than Rs. 20 lakh is given exemptions from GST registration. But states like Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Arunachal Pradesh, Jammu and Kashmir, Himachal Pradesh and Uttarakhand (special category states) where the threshold limit is Rs. 10 lakh.

People making Nil-Rated/ Exempt supplies

People who are engaged in the business of supplying common items which are in the exemptions list of GST. Some of these are mentioned below:

  • All unprocessed food like wheat, rice, bread, cereals, milk, vegetables, eggs, fish, meat,  salt etc.
  • Travel by train local and sleeper classes
  • Education
  • Healthcare (but not medicines)
  • Lodges and hotels with room rent less than Rs 1,000
  • Children’s colouring /drawing books
  • Sindoor, bindis bangles, etc

People making Non-Taxable/ Non-GST supplies

Certain items do not come under the purview of GST:

  • Petroleum crude and petrol
  • Natural gas
  • Electricity
  • High speed diesel
  • Alcohol for human consumption
  • Aviation turbine fuel

Activities that are neither Supply of Goods nor Services

These include:

  • Services by an employee.
  • Services by a Court or Tribunal.
  • Functions and duties of –
    • MLAs, MPs, Members of Municipalities, Panchayats, Municipalities and other local authorities;
    • People holding any Constitutional Post;
    • People as a Member, Chairperson or a Director in a body.
  • Funeral Services.
  • Sale of building and land.
  • Actionable claims (other than betting, lottery and gambling).

People making only supplies covered under reverse charge

On 19th June 2016 via Notification No. 5/2017, the Central Government has exempted people from obtaining registration who are engaged only in making supplies of taxable goods or services, total tax on which is liable to be paid on the reverse charge basis by the recipient of such goods or services. This notification came into force on 22nd June 2016.

Some businesses manufacture goods or provide services that are not taxable under GST. Many companies and professionals provide services that do not find a place in any of the GST slabs. So, it is vital that you get to know about all the relevant exemptions under the Goods and Services Tax Act.

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A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.