List of Services at Nil Rate

A total of 87 services have been notified as as Nil Rated Services. Essentially these are the services on which tax is applicable at the rate of 0%. Eventually a service provider providing these services will be eligible to claim input tax credit for goods or services consumed while providing these services.

Nil rated supply is different from exempt supply. If a service provider is providing exempted services then he is not eligible for to claim the input credit. However same is possible under Nil rated supply.

Below is the extensive list of services which are Nil Rated:

S. No Description of Services Tax Rate
1 Services by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) by way of charitable activities. Nil
2 Services by way of transfer of a going concern, as a whole or an independent part thereof. Nil
3 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. Nil
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 Nil
W of the Constitution.
5 Services by a governmental authority by way of any activity in relation to any function entrusted to a Nil
Panchayat under article 243G of the Constitution.
6 Services by the Central Government, State Government, Union territory or local authority excluding the following services— Nil
(a) services by the Department of Posts by way of speed post, express parcel post, life insurance,
and agency services provided to a person other than the Central Government, State Government, Union territory;
(b) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (c) transport of goods or passengers; or
(d) any service, other than services covered under entries (a) to (c) above, provided to business entities.
7 Services provided by the Central Government, State Government, Union territory or local authority to a business entity with an aggregate turnover of up to twenty lakh rupees (ten lakh rupees in case of a special category state) in the preceding financial year. Nil
Explanation.- For the purposes of this entry, it is hereby clarified that the provisions of this entry shall
not be applicable to- (a) services-
(i) by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than the Central Government, State Government, Union territory;
(ii) in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (iii) of transport of goods or passengers; and
(b) services by way of renting of immovable property.
8 Services provided by the Central Government, State Government, Union territory or local authority to another Central Government, State Government, Union territory or local authority: Nil
Provided that nothing contained in this entry shall apply to services-
(i) by the Department of Posts by way of speed post, express parcel post, life insurance, and agen- cy services provided to a person other than the Central Government, State Government, Union territory;
(ii) in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (iii) of transport of goods or passengers.
9 Services provided by Central Government, State Government, Union territory or a local authority Nil
where the consideration for such services does not exceed five thousand rupees:
Provided that nothing contained in this entry shall apply to –
(i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than the Central Government, State Government, Union territory;
(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (iii) transport of goods or passengers:
Provided further that in case where continuous supply of service, as defined in sub-section (33) of section 2 of the Central Goods and Services Tax Act, 2017, is provided by the Central Government, State Government, Union territory or a local authority, the exemption shall apply only where the con- sideration charged for such service does not exceed five thousand rupees in a financial year.
10 Services received from a provider of service located in a non- taxable territory by – Nil
(a) the Central Government, State Government, Union territory, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession;
(b) an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) for the purposes of providing charitable activities; or
(c) a person located in a non-taxable territory:
Provided that the exemption shall not apply to –
(i) online information and database access or retrieval services received by persons specified in entry
(a) or entry (b); or
(ii) services by way of transportation of goods by a vessel from a place outside India up to the cus-
toms station of clearance in India received by persons specified in the entry.
11 Services provided by way of pure labour contracts of construction, erection, commissioning, instal- lation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the beneficiary-led individual house construction or enhancement under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana. Nil
12 Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single residential unit otherwise than as a part of a residential complex. Nil
13 Services by way of renting of residential dwelling for use as residence. Nil
14 Services by a person by way of- Nil
(a) conduct of any religious ceremony;
(b) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961 (here- inafter referred to as the Income-tax Act) or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act:
Provided that nothing contained in entry (b) of this exemption shall apply to,- (i) renting of rooms where charges are one thousand rupees or more per day;
(ii) renting of premises, community halls, kalyanmandapam or open area, and the like where charges are ten thousand rupees or more per day;
(iii) renting of shops or other spaces for business or commerce where charges are ten thousand rupees or more per month.
15 Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent. Nil
16 Transport of passengers, with or without accompanied belongings, by – Nil
(a) air, embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Ben- gal;
(b) non-airconditioned contract carriage other than radio taxi, for transportation of passengers, ex- cluding tourism, conducted tour, charter or hire; or
(c) stage carriage other than air-conditioned stage carriage.
17 Services provided to the Central Government, by way of transport of passengers with or without accompanied belongings, by air, embarking from or terminating at a regional connectivity scheme airport, against consideration in the form of viability gap funding: Nil
Provided that nothing contained in this entry shall apply on or after the expiry of a period of one year from the date of commencement of operations of the regional connectivity scheme airport as notified by the Ministry of Civil Aviation.
18 Service of transportation of passengers, with or without accompanied belongings, by— (a) railways in a class other than— Nil
(i) first class; or
(ii) an air-conditioned coach; (b) metro, monorail or tramway; (c) inland waterways;
(d) public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and
(e) metered cabs or auto rickshaws (including e-rickshaws).
19 Services by way of transportation of goods- (a) by road except the services of— Nil
(i) a goods transportation agency; (ii) a courier agency;
(b) by inland waterways.
20 Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India. Nil
21 Services by way of transportation by rail or a vessel from one place in India to another of the following goods: Nil
(a) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mis- hap;
(b) defence or military equipments;
(c) newspaper or magazines registered with the Registrar of Newspapers; (d) railway equipments or materials;
(e) agricultural produce;
(f) milk, salt and food grain including flours, pulses and rice; and
(g) organic manure.
22 Services provided by a goods transport agency, by way of transport in a goods carriage of – (a) agricultural produce; Nil
(b) goods, where consideration charged for the transportation of goods on a consignment transported
in a single carriage does not exceed one thousand five hundred rupees;
(c) goods, where consideration charged for transportation of all such goods for a single consignee
does not exceed rupees seven hundred and fifty;
(d) milk, salt and food grain including flour, pulses and rice;
(e) organic manure;
(f) newspaper or magazines registered with the Registrar of Newspapers;
(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mis- hap; or
(h) defence or military equipments.
23 Services by way of giving on hire – Nil
(a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or
(b) to a goods transport agency, a means of transportation of goods.
24 Service by way of access to a road or a bridge on payment of toll charges. Nil
25 Services by way of loading, unloading, packing, storage or warehousing of rice. Nil
26 Transmission or distribution of electricity by an electricity transmission or distribution utility. Nil
27 Services by the Reserve Bank of India. Nil
28 Services by way of: Nil
(a) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services);
(b) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign ex- change or amongst banks and such dealers.
29 Services of life insurance business provided by way of annuity under the National Pension System regulated by the Pension Fund Regulatory and Development Authority of India under the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013). Nil
30 Services of life insurance business provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds to members of the Army, Navy and Air Force, respectively, under the Group Insurance Schemes of the Central Government. Nil
31 Services by the Employees’ State Insurance Corporation to persons governed under the Employees’ State Insurance Act, 1948 (34 of 1948). Nil
32 Services provided by the Employees Provident Fund Organisation to the persons governed under the Nil
Employees Provident Funds and the Miscellaneous Provisions Act, 1952 (19 of 1952).
33 Services provided by the Insurance Regulatory and the Development Authority of India to insurers under the Insurance Regulatory and the Development Authority of India Act, 1999 (41 of 1999). Nil
34 Services provided by the Securities and Exchange Board of India set up under the Securities and Ex- change Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors in securi- ties and to promote the development of, and to regulate, the securities market. Nil
35 Services by an acquiring bank, to any person in relation to settlement of an amount upto two thou- sand rupees in a single transaction transacted through credit card, debit card, charge card or other payment card service. Nil
Explanation.— For the purposes of this entry, “acquiring bank” means any banking company, finan- cial institution including non-banking financial company or any other person, who makes the payment to any person who accepts such card.
36 Services of general insurance business provided under following schemes – (a) Hut Insurance Scheme; Nil
(b) Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna (earlier known as Integrated Rural
Development Programme);
(c) Scheme for Insurance of Tribals;
(d) Janata Personal Accident Policy and Gramin Accident Policy; (e) Group Personal Accident Policy for Self-Employed Women;
(f) Agricultural Pumpset and Failed Well Insurance; (g) premia collected on export credit insurance;
(h) Weather Based Crop Insurance Scheme or the Modified National Agricultural Insurance Scheme,
approved by the Government of India and implemented by the Ministry of Agriculture; (i) Jan Arogya Bima Policy;
(j) National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana); (k) Pilot Scheme on Seed Crop Insurance;
(l) Central Sector Scheme on Cattle Insurance; (m) Universal Health Insurance Scheme;
(n) Rashtriya Swasthya Bima Yojana; (o) Coconut Palm Insurance Scheme;
(p) Pradhan Mantri Suraksha BimaYojna;
(q) Niramaya Health Insurance Scheme implemented by the Trust constituted under the provisions of the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).
37 Services of life insurance business provided under following schemes- (a) Janashree Bima Yojana; Nil
(b) Aam Aadmi Bima Yojana;
(c) Life micro-insurance product as approved by the Insurance Regulatory and Development
Authority, having maximum amount of cover of fifty thousand rupees;
(d) Varishtha Pension BimaYojana;
(e) Pradhan Mantri Jeevan JyotiBimaYojana; (f) Pradhan Mantri Jan DhanYogana;
(g) Pradhan Mantri Vaya Vandan Yojana.
38 Services by way of collection of contribution under the Atal Pension Yojana. Nil
39 Services by way of collection of contribution under any pension scheme of the State Governments. Nil
40 Services by the following persons in respective capacities – Nil
(a) business facilitator or a business correspondent to a banking company with respect to accounts in its rural area branch;
(b) any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in entry (a); or
(c) business facilitator or a business correspondent to an insurance company in a rural area.
41 Services provided to the Central Government, State Government, Union territory under any insurance scheme for which total premium is paid by the Central Government, State Government, Union Nil
territory.
42 Services received by the Reserve Bank of India, from outside India in relation to management of foreign exchange reserves. Nil
43 One time upfront amount (called as premium, salami, cost, price, development charges or by any other name) leviable in respect of the service, by way of granting long term (thirty years, or more) lease of industrial plots, provided by the State Government Industrial Development Corporations or Undertakings to industrial units. Nil
44 Services provided by the Central Government, State Government, Union territory or local authority by way of allowing a business entity to operate as a telecom service provider or use radio frequency spectrum during the period prior to the 1st April, 2016, on payment of licence fee or spectrum user charges, as the case may be. Nil
45 Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by the Indian Nil
Railways Finance Corporation to Indian Railways.
46 Services provided by an incubatee up to a total turnover of fifty lakh rupees in a financial year subject Nil
to the following conditions, namely:-
(a) the total turnover had not exceeded fifty lakh rupees during the preceding financial year; and
(b) a period of three years has not elapsed from the date of entering into an agreement as an incu- bate.
47 Services provided by- Nil
(a) an arbitral tribunal to –
(i) any person other than a business entity; or
(ii) a business entity with an aggregate turnover up to twenty lakh rupees (ten lakh rupees in the
case of special category states) in the preceding financial year;
(b) a partnership firm of advocates or an individual as an advocate other than a senior advocate, by
way of legal services to-
(i) an advocate or partnership firm of advocates providing legal services;
(ii) any person other than a business entity; or
(iii) a business entity with an aggregate turnover up to twenty lakh rupees (ten lakh rupees in the-
case of special category states) in the preceding financial year;
(c) a senior advocate by way of legal services to- (i) any person other than a business entity; or
(ii) a business entity with an aggregate turnover up to twenty lakh rupees (ten lakh rupees in the
case of special category states) in the preceding financial year.
48 Services by a veterinary clinic in relation to health care of animals or birds. Nil
49 Services provided by the Central Government, State Government, Union territory or local authority by way of- tt Nil
(a) registration required under any law for the time being in force;
(b) testing, calibration, safety check or certification relating to protection or safety of workers, consum-
ers or public at large, including fire license, required under any law for the time being in force.
50 Taxable services, provided or to be provided, by a Technology Business Incubator or a Science and Technology Entrepreneurship Park recognised by the National Science and Technology Entrepre- neurship Development Board of the Department of Science and Technology, Government of India Nil
or bio-incubators recognised by the Biotechnology Industry Research Assistance Council, under the
Department of Biotechnology, Government of India.
51 Services by way of collecting or providing news by an independent journalist, Press Trust of India or Nil
United News of India.
52 Services of public libraries by way of lending of books, publications or any other knowledge-enhanc- ing content or material. Nil
53 Services provided by the Goods and Services Tax Network to the Central Government or State Gov- ernments or Union territories for implementation of Goods and Services Tax. Nil
54 Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside Nil
India.
55 Services by an organiser to any person in respect of a business exhibition held outside India. Nil
56 Services by way of sponsorship of sporting events organised – Nil
(a) by a national sports federation, or its affiliated federations, where the participating teams or indi- viduals represent any district, State, zone or Country;
(b) by Association of Indian Universities, Inter-University Sports Board, School Games Federation of India, All India Sports Council for the Deaf, Paralympic Committee of India or Special Olympics Bharat;
(c) by the Central Civil Services Cultural and Sports Board;
(d) as part of national games, by the Indian Olympic Association; or
(e) under the Panchayat Yuva Kreeda Aur Khel Abhiyaan Scheme.
57 Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of— (a) agricultural operations directly related to production of any agricultural produce including cultiva- Nil
tion, harvesting, threshing, plant protection or testing; (b) supply of farm labour;
(c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
(d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use; (e) loading, unloading, packing, storage or warehousing of agricultural produce;
(f) agricultural extension services;
(g) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce.
58 Carrying out an intermediate production process as job work in relation to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce. Nil
59 Services by way of slaughtering of animals. Nil
60 Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables. Nil
61 Services provided by the National Centre for Cold Chain Development under the Ministry of Nil
Agriculture, Cooperation and Farmer’s Welfare by way of cold chain knowledge dissemination.
62 Services by a foreign diplomatic mission located in India. Nil
69 Services provided – Nil
(a) by an educational institution to its students, faculty and staff; (b) to an educational institution, by way of,-
(i) transportation of students, faculty and staff;
(ii) catering, including any mid-day meals scheme sponsored by the Central Government, State
Government or Union territory;
(iii) security or cleaning or house-keeping services performed in such educational institution;
(iv) services relating to admission to, or conduct of examination by, such institution; upto higher secondary:
Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.
70 Services provided by the Indian Institutes of Management, as per the guidelines of the Central Gov- ernment, to their students, by way of the following educational programmes, except Executive Devel- opment Programme: – Nil
(a) two year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT) con- ducted by the Indian Institute of Management;
(b) fellow programme in Management;
(c) five year integrated programme in Management.
71 Services provided to a recognised sports body by- Nil
(a) an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organised by a recognized sports body;
(b) another recognised sports body.
72 Any services provided by, _ Nil
(a) the National Skill Development Corporation set up by the Government of India; (b) a Sector Skill Council approved by the National Skill Development Corporation;
(c) an assessment agency approved by the Sector Skill Council or the National Skill Development
Corporation;
(d) a training partner approved by the National Skill Development Corporation or the Sector Skill
Council, in relation to-
(i) the National Skill Development Programme implemented by the National Skill Development
Corporation; or
(ii) a vocational skill development course under the National Skill Certification and Monetary Re- ward Scheme; or
(iii) any other Scheme implemented by the National Skill Development Corporation.
73 Services of assessing bodies empanelled centrally by the Directorate General of Training, Ministry of Skill Development and Entrepreneurship by way of assessments under the Skill Development Initia- tive Scheme. Nil
74 Services provided by training providers (Project implementation agencies) under Deen Dayal Upad- hyaya Grameen Kaushalya Yojana implemented by the Ministry of Rural Development, Government of India by way of offering skill or vocational training courses certified by the National Council for Vocational Training. Nil
75 Services provided to the Central Government, State Government, Union territory administration under any training programme for which total expenditure is borne by the Central Government, State Gov- ernment, Union territory administration. Nil
76 Services provided by the cord blood banks by way of preservation of stem cells or any other service in relation to such preservation. Nil
83 Services by way of training or coaching in recreational activities relating to: (a) arts or culture, or Nil
(b) sports by charitable entities registered under section 12AA of the Income-tax Act.
84 Services by way of right to admission to- Nil
(a) circus, dance, or theatrical performance including drama or ballet;
(b) award function, concert, pageant, musical performance or any sporting event other than a rec- ognised sporting event;
(c) recognised sporting event, where the consideration for admission is not more than Rs 250 per person as referred to in (a), (b) and (c) above.
85 Services provided to the United Nations or a specified international organization is exempt by way of Nil
refund.
86 Services provided to a foreign diplomatic mission or consular post in India or for personal use or Nil
for the use of the family members of diplomatic agents or career consular officers posed therein, is
exempt by way of refund.
87 Services by the Central Government or State Government or any local authority by way of any activity in relation to a function entrusted to a Panchayat under article 243G of the Constitution is neither a supply of goods nor a supply of service Nil
2017-07-17T15:32:59+00:00July 17th, 2017|GST Rates|