Is any nagative list and mega exemption under service tax be continued under GST.?
This query is : Resolved
01 July 2017
Is any nagative list and mega exemption list u der service tax to be continued in GST from 1st July 2017.?
01 July 2017
Service tax exemptions are continued in GST. For details pl see http://gstindiaupdates.com/wp-content/uploads/2017/05/Exemption-List-under-GST.pdf
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01 July 2017
sir thank you for your reply
01 July 2017
sir I have another issues regarding exemption vide notification no. 4/2015-st dated 01-03-2015 about service provided by transport of export goods by road from place of removal to CFS or port.
can same notification be continued in GST.??
can same notification be continued in GST.??
01 August 2024
Under the Goods and Services Tax (GST) regime, which came into effect from July 1, 2017, several changes were made compared to the previous service tax regime. Here’s a detailed explanation regarding the continuation of negative lists and mega exemptions, and the specific query about the notification on transportation of export goods:
### 1. **Negative List and Mega Exemptions under GST**
**Service Tax Regime:**
- **Negative List:** Under the service tax regime, certain services were excluded from service tax liability through the negative list approach, which meant that any service not specifically included in the negative list was taxable.
- **Mega Exemption:** The Mega Exemption Notification provided exemptions for specific services under service tax.
**GST Regime:**
- **Negative List:** The concept of the negative list was replaced with the concept of “Exemptions” under GST. GST is applicable on all goods and services except those specifically exempted or zero-rated. The negative list approach of service tax does not continue under GST.
- **Mega Exemption:** Similarly, the Mega Exemption Notification from the service tax regime does not continue in the GST regime. Instead, specific exemptions are provided through GST notifications and circulars. These exemptions are based on the nature of the supply, and there is no direct continuation of the Mega Exemption List under GST.
### 2. **Continuation of Exemption Notification**
**Notification No. 4/2015-ST dated 01-03-2015:**
- **Service Provided:** This notification exempted the service of transportation of export goods by road from the place of removal to a Container Freight Station (CFS) or port.
**Under GST:**
- **Exemption Continuation:** The specific exemption under service tax for transportation of export goods may not continue directly under GST. Instead, under GST, transportation of goods can be subject to different rules and exemptions.
- **Relevant GST Provisions:**
- **Notification No. 12/2017-Central Tax (Rate):** This notification provides exemptions for certain services under GST, including transportation of goods. It specifies the tax rates and exemptions applicable to various types of transportation services.
- **Export of Goods:** Under GST, the export of goods is treated as a zero-rated supply under Section 16 of the Integrated Goods and Services Tax Act (IGST Act), which means that supplies for export are taxed at 0% GST, and input tax credit can be claimed.
**Key Points to Consider:**
- **Verification:** It’s important to verify the latest GST notifications and circulars to understand the current exemptions and taxability related to the transportation of export goods.
- **Consult GST Professionals:** For specific cases, it is advisable to consult GST professionals or tax advisors to ensure compliance with the current GST laws and to understand how previous exemptions have been adapted under the GST framework.
### Summary
- **Negative List and Mega Exemption:** The negative list and Mega Exemption Notification under the service tax regime do not continue under GST. GST operates on a different framework for taxation and exemptions.
- **Notification Continuation:** Specific exemptions, such as those for the transportation of export goods, are addressed differently under GST. You should refer to GST notifications and consult professionals to understand the current applicable exemptions and rules.
### 1. **Negative List and Mega Exemptions under GST**
**Service Tax Regime:**
- **Negative List:** Under the service tax regime, certain services were excluded from service tax liability through the negative list approach, which meant that any service not specifically included in the negative list was taxable.
- **Mega Exemption:** The Mega Exemption Notification provided exemptions for specific services under service tax.
**GST Regime:**
- **Negative List:** The concept of the negative list was replaced with the concept of “Exemptions” under GST. GST is applicable on all goods and services except those specifically exempted or zero-rated. The negative list approach of service tax does not continue under GST.
- **Mega Exemption:** Similarly, the Mega Exemption Notification from the service tax regime does not continue in the GST regime. Instead, specific exemptions are provided through GST notifications and circulars. These exemptions are based on the nature of the supply, and there is no direct continuation of the Mega Exemption List under GST.
### 2. **Continuation of Exemption Notification**
**Notification No. 4/2015-ST dated 01-03-2015:**
- **Service Provided:** This notification exempted the service of transportation of export goods by road from the place of removal to a Container Freight Station (CFS) or port.
**Under GST:**
- **Exemption Continuation:** The specific exemption under service tax for transportation of export goods may not continue directly under GST. Instead, under GST, transportation of goods can be subject to different rules and exemptions.
- **Relevant GST Provisions:**
- **Notification No. 12/2017-Central Tax (Rate):** This notification provides exemptions for certain services under GST, including transportation of goods. It specifies the tax rates and exemptions applicable to various types of transportation services.
- **Export of Goods:** Under GST, the export of goods is treated as a zero-rated supply under Section 16 of the Integrated Goods and Services Tax Act (IGST Act), which means that supplies for export are taxed at 0% GST, and input tax credit can be claimed.
**Key Points to Consider:**
- **Verification:** It’s important to verify the latest GST notifications and circulars to understand the current exemptions and taxability related to the transportation of export goods.
- **Consult GST Professionals:** For specific cases, it is advisable to consult GST professionals or tax advisors to ensure compliance with the current GST laws and to understand how previous exemptions have been adapted under the GST framework.
### Summary
- **Negative List and Mega Exemption:** The negative list and Mega Exemption Notification under the service tax regime do not continue under GST. GST operates on a different framework for taxation and exemptions.
- **Notification Continuation:** Specific exemptions, such as those for the transportation of export goods, are addressed differently under GST. You should refer to GST notifications and consult professionals to understand the current applicable exemptions and rules.
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