Summary of the GST Exemption list on certain services as per Notification No 04/2024

Certain changes have been made by the government in GST Exemption list on certain services as per Notification No 04/2024 with effect from 15-07-2024.

Major Points of the Notification No.04/2024-Central tax (Rate) & Integrated Tax (Rate) regarding exemption services under gst are as follows:

• Services provided by Ministry of Railways (Indian Railways) to Individuals 
• Services provided by one zone/division of Indian Railways to another Zone/division of Indian Railways.
• Service provided by Special Purpose Vehicle (SPV) to Ministry of Railways.
• Supply of Accomdation services subject to certain conditions being met

Note: The Notification No.04/2024-Central tax (Rate) & Integrated Tax (Rate) dated 12-07-2024 will be effective from 15-07-2024.

1. Services provided by Ministry of Railways (Indian Railways) to Individuals

Services provided by ministry of Railways (Indian railways) to individuals by way of:

• Sale of Platform tickets
• Facility of retiring rooms / waiting rooms
• Cloak room services
• Battery operated car services

will be exempt from GST with effect from 15-07-2024.

2. Services provided by one zone/division of Indian Railways to another Zone/division of Indian Railways

Services provided by one zone/division under Ministry of Railways (Indian Railways) to another zone(s)/ division(s) under Ministry of Railways (Indian Railways).

3. Service provided by Special Purpose Vehicle (SPV) to Ministry of Railways.

Services provided by SPVS to Indian Railways by allowing Indian Railways to use the infrastructure built and owned by them during the concession period against consideration and services of maintenance supplied by Indian Railways to SPVs in relation to the said infrastructure built by the SPVs during the concession period against consideration.

4. Supply of Accomdation services subject to certain conditions being met

(1)

As per Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017, serial No. 12-Heading 9963/9972 covers services by way of renting residential dwellings for use as residences, except where the residential dwelling is rented to a registered person. However, the government has amended this by removing heading 9963 for this entry.

Therefore, from 15-07-2024, services by way of renting residential dwellings for use as residences, except where the residential dwelling is rented to a registered person, will be covered under heading 9972.

Furthermore, the government has added another explanation in serial No. 12 of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017.

Explanation 2.- Nothing contained in this entry shall apply to-

(a) accommodation services for students in student residences

(b) accommodation services provided by Hostels, Camps, Paying Guest accommodations and the like;

(2)

In the Notification No.12/2017-Central Tax (Rate) dated 28-06-2017 after serial no.12 ,12A have been inserted by the government which are as under:

Analysis:

• Notification No.12/2017-Central Tax (Rate) is related to exemption from GST.
• Government has added serial no.12A in the above notification which is effective from 15-07-2024.

Accommodation services will be exempt under GST with effect from 15-07-2024 if the following conditions are met:

1. The value of the accommodation is less than or equal to 20,000 rupees per person per month.
2. The accommodation service is provided for at least 90 continuous days.

In simple terms, if you stay in a place for three months or more and pay not more than 20,000 rupees per month, you won’t have to pay GST on that accommodation from 15-07-2024.

Let’s understand with example:

Suppose Mr. X Provides accommodation services for: