Nature of Service

Decision taken at GST Council Meeting

Serving of food including mid-day meals under any mid-day meals, sponsored by Government

Services by way of serving of food including mid-day meals under any midday meals scheme sponsored by Government, supplied to an educational institution including anganwadi (which provides pre-education) also shall be exempt from levy of GST irrespective of funding of such supplies from government grants or corporate donations.

Services provided by way of examination including entrance examination

Services provided by way of examination including entrance examination, where fee is charged for such examinations, by National Board of Examination (NBE) or similar Central or State Educational Boards and input services relating thereto are exempt from GST.

Utilization of credit of GST to land owner promoters charged by developer promoters

Appropriate changes to be notified in the relevant notification to make it clear that the land owner promoters could utilize credit of GST charged to them by developer promoters in respect of such apartments that are subsequently sold by the land promoters and on which GST is paid. The developer promoter shall be allowed to pay GST relating to such apartments any time before or at the time of issuance of completion certificate.

GST on MRO services in respect of ships/ vessels reduced

To extend the same dispensation as provided to MRO units of aviation sector to MRO units of ships/ vessels so as to provide level playing field to domestic shipping MRO vis a vis foreign MRO and accordingly, -

• GST or MRO services in respect of ships/vessels reduced to 5% from 18%.
• Place of supply of B2B supply of MRO services in respect of ships/ vessels would be location of recipient of service.

Exemption for services by way of milling of wheat/ paddy into flour/ rice to Government/ local authority for distribution under PDS

Exemption from GST to supply of services by way of milling of wheat/ paddy into flour (fortified with minerals etc. by millers or otherwise)/ rice to Government/ local authority etc. for distribution of such floor or rice under PDS if the value of goods in such composite supply does not exceed 25%. Otherwise, such services would attract GST at the rate of 5% if supplied to any person registered in GST, including a person registered for payment of TDS.

Clarification for GST on annuity payments received as deferred payments for road construction

To clarify that GST is payable on annuity payments received as deferred payments for construction of road. The benefit of exemption is for such annuities which are paid for the service by way of access to a road or a bridge.

Clarification for GST on construction of a rope-way

It is clarified that services supplied to a Government entity by way of construction of a rope-way shall attract GST at 18%.

Guaranteeing of loans by Government to its undertakings/ PSU

It is clarified that services supplied by Government to its undertaking/PSU by way of guaranteeing loans taken by such entity from banks and financial institutions shall be exempt from GST.