What Are The Exempted Services Under The GST Act 2017

The GST Act of 2017 is a complete tax system in India, covering both goods and services. It simplifies the old tax system by grouping items into different tax categories. 

Among the services subject to GST, some are considered "exempted services." This means they are not taxed under GST. In this article, we will explore a list of services that fall into the exempted category under the GST Act of 2017.

What Are Exempted Services?

Exempted services are those for which GST is not applicable, and service providers cannot claim Input Tax Credit (ITC. This implies that service providers do not include GST in their charges to customers for these services, and they can not use ITC to reduce their GST liability for expenses related to these services.

List of Exempted Services

1. Healthcare Services:

   - Medical care provided by hospitals, clinics, and doctors for illness or injury.

2. Educational Services:

   - Services offered by schools and colleges, from preschool to higher education.

3. Transportation Services:

   - Passenger transportation in non-air-conditioned buses.

4. Financial Services:

   - Banking and financial services, including loan interest.

5. Postal and Courier Services:

   - Mail and courier services for domestic deliveries.

6. Public Library Services:

   - Borrowing or reading books, magazines, and newspapers at public libraries.

7. Funeral and Burial Services:

   - Services for funerals, burials, cremation, and mortuaries.

8. Agricultural Services:

   - Farming, harvesting, and storage of agricultural produce.

9. Animal Husbandry Services:

   - Veterinary care for animals.

10. Employment Services:

    - Job placement and employment services.

11. Cultural and Artistic Services:

    - Services by artists, writers, and composers.

12. Government Services:

    - Services provided by the State Government/Central Government.

13. Charitable Organizations:

    - Services by registered charitable organizations.

14. Religious Institutions:

    - Services at places of worship like temples, mosques, and churches.

15. Legal Services:

    - Services by lawyers and legal consultants.

16. Public Transportation Services:

    - Metro, monorail, and local train passenger services.

17. Services to Diplomatic Missions:

    - Services to foreign diplomatic missions and their personnel.

18. Panchayat Services:

    - Services by local governing bodies (Panchayats) to their members.

Also Read: GST Returns: What is GST Returns? Types of GST Returns & How To File GST Returns

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