09 July 2024
Under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the work performed under this scheme is primarily aimed at providing employment and livelihood security in rural areas of India. Here are some key points regarding exemptions related to MGNREGA work services:
1. **Exemption from Income Tax:** Wages paid under MGNREGA are exempt from income tax under Section 10(15)(i) of the Income Tax Act, 1961.
2. **Exemption from GST:** Services provided by individuals as part of MGNREGA are exempt from GST (Goods and Services Tax) under Notification No. 12/2017-Central Tax (Rate), dated 28th June 2017.
3. **Other Exemptions:** While wages under MGNREGA are exempt from income tax and the services provided are exempt from GST, there may not be blanket exemptions for other regulatory requirements or obligations unless specifically mentioned in relevant laws or regulations.
Therefore, for most practical purposes related to taxation and GST, MGNREGA work services are exempted. However, specific exemptions and their applicability can vary, so it's advisable to consult with a tax advisor or legal expert for precise guidance tailored to your specific situation or requirements.
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