Gst exemption

This query is : Resolved

Dipen (Querist)
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28 August 2017 Dear sir,

Following service is exempt from GST :

Services provided by training providers (Project implementation agencies) under Deen Dayal Upadhyaya Grameen Kaushalya Yojana under the Ministry of Rural Development by way of offering skill or vocational training courses certified by National Council For Vocational Training

However if any registered person provides service to above (Eg renting premises to training providers above) , would there be GST applicable of the rent charged?

Please advice.

Lalit Kumar

Lalit Kumar (Expert)
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28 August 2017 Definition of Supply under GST

Definition of ‘supply’ Under section 2(92) read with section 3 ‘supply’ includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Schedule I specified the supply.

Analysis: Supply is the term replaced for the term sale; no scope has been left for any confusion and the definition includes every term which shall be coined as sale. Even the supply which is made or agreed to be made without a consideration will also amount to sale.

Any transfer of title to goods is a supply of goods, transfer of right to use goods [section 4(8) of APVAT Act, 2005], Hire purchase transactions, transfer of business assets are also brought under the ambit of term ‘supply’ as per Schedule II.

1.Supply includes
(a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business,
(b)importation of service, whether or not for a consideration and whether or not in the course or furtherance of business, and
(c) a supply specified in Schedule I, made or agreed to be made without a consideration

2.Schedule II, in respect of matters mentioned therein, shall apply for determining what is, or is to be treated as a supply of goods or a supply of services.

INFERENCE: As per the above definition of supply, it is clear that any person registered under the GST Act providing above mentioned nature of service need to charge GST on his supply of services irrespective of whether the service receiver is exempt in providing services to any above mentioned agency.