Taxability for Government
I] Taxable Services by government (central, state, UT, local authority)
Sr. Nature of services
Supplier
Recipient
Liability
Other conditions
no.
Govt.
Non-govt. to pay
GST
1
S = speed post
Govt.
Exempt
Taxable
FCM
Recipient can be any entity
A = agency
(postal
[e.g. IT
whether business or not.
L = life insurance
dept.)
notice by
E = express courier
post]
Note:  Agency service includes mutual fund, bonds, payment of bills, collection of dividend etc.
 For exempted postal services refer to exempted services below.
 GST is levied on services to non-govt. entities, to avoid competition between govt. and non-govt.
enterprises. As the above services are also provided by non-govt. entities.
2
Vessel/aircraft
Govt.
Taxable
Taxable
FCM
Recipient can be any entity
A] related services
whether business or not.
inside or outside
the airport.
2
Transport of goods Govt.
Taxable
Taxable
FCM
Recipient can be any entity
B]
or passenger
whether business or not.
3
Renting of
Govt.
Exempt
Taxable
FCM
 Recipient can be any
immovable
entity whether business or
property
not.
 Consideration > `5,000.
RCM
4
Any other services
Govt.
Exempt
Taxable
Recipient should be
business entity
 T/O of PY > 20 lac/10
lac.
 consideration > ` 5000
e.g.  Service provided by police to PSU or corporates etc.
 licence by govt. to extract natural resources such as coal, oil etc.
II] Exempted Services by government
 Postal services, such as basic mail services (post), post card, registered post, money order, pension
etc. provided exclusively by postal department.
 Registration services such as registration under GST, companies etc.
 Certification/auditing/checking etc. e.g. ISI, food quality, pollution control, fire safety etc.
 Passport/VISA/death certificate/birth certificate/bonafide certificate etc.
 Govt. employees providing services for loading, unloading, inspecting, stuffing at port during
holidays etc.
 Service provided to Govt. for training programs of govt. departments for which total expenses are
borne by Govt.
Note:  Following are not included in the definition of Government: a. Regulatory bodies (e.g. RBI, SEBI, IRDA etc.)
b. Government companies.
c. Local bodies
d. Statutory body/corporation constituted by parliament/state legislature.
 Penalties/fines paid to non-govt. entity will attract GST, however fines/penalty paid to Govt. is
exempt from tax.
Mawani & Supreme Professional Commerce Academy