The Central Government has amended Notification No. 12/2017- Central Tax (Rate) dated June 28, 2017 to exempt certain services like:
- Services by an old age home run by Central Government, State Government or by an entity registered under Section 12AA of the Income-tax Act, 1961 to its residents (aged 60 years or more) against consideration upto twenty-five thousand rupees per month per member.
- Services by Coal Mines Provident Fund Organisation to persons governed by the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948
- Services by National Pension System (NPS) Trust to its members against consideration in the form of administrative fee.
- Services supplied by Central Government, State Government, Union territory to their undertakings or PSUs by way of guaranteeing the loans taken by such undertakings or PSUs from the financial institutions.
- Services provided by an unincorporated body or a non-profit entity registered under any law for the time being in force, engaged in –
- activities relating to the welfare of industrial or agricultural labour or farmers; or
- promotion of trade, commerce, industry, agriculture, art, science, literature, culture, sports, education, social welfare, charitable activities and protection of environment,
to its own members against consideration in the form of membership fee upto an amount of one thousand rupees (Rs 1000/-) per member per year.
Certain clarification and rationalisation have also been made and few important of them are as under:
- The word ‘declared tariff’ has been replaced with ‘value of supply’ in serial no. 14 to exempt services by a hotel, guest house etc. for residential or lodging purposes, where value of supply is less than Rs. 1000 per day or equivalent
- In S. No. 19A and 19B the sunset clause has been extended to September 30, 2019 for service by way of transportation of goods by an aircraft/ Vessel from customs station of clearance in India to a place outside India.
- An explanation has been inserted to clarify that supply of services provided by State and Central educational boards to students for conduct of examination will be exempt.