Page 32 - CA Final GST

Badlani Classes

Chapter : 7

Exemption of services

Sl. No. Description of services

1 Services by an entity registered under section 12AA of the Income-tax Act, 1961 by
way of charitable activities.
In order to claim exemption under this head, following two conditions must be satisfied:-

(i) The entity is registered with income tax authorities under section 12AA of
the Income tax Act, 1961, and
(ii) The entity carries out one or more of the specified charitable activities.

It implies that tax is payable on any service other than by way of charitable activities to
any other person [subject to fulfillment of other conditions of taxability] provided by an

entity registered under section 12AA of the Income tax Act, 1961.
2 Services by way of transfer of a going concern, as a whole or an independent part
thereof.

3 Pure services provided TO Government:
Pure services (excluding works contract service or other composite supplies

involving supply of any goods)
provided to the Central Government, State Government or Union territory or
local authority or a Governmental authority

by way of any activity:
• in relation to any function entrusted to a Panchayat under article 243G of

the Constitution or
• in relation to any function entrusted to a Municipality under article 243W
of the Constitution

4 • Services by Central Government, State Government, Union territory, local
authority or governmental authority

• by way of any activity in relation to any function entrusted to a municipality
under article 243 W of the Constitution are exempt.
5 • Services by a Governmental Authority

• by way of any activity in relation to any function entrusted to a Panchayat
Page31
under article 243G of the Constitution.

Central Goods & Services Tax Act, 2017