What Are The Exemptions And Concessions Available Under GST For Specific Sectors Or Categories Of Goods And Services?

Goods and Services Tax (GST) Exemptions and Concessions in India

Sector-Specific Exemptions:

1. Agriculture and Allied Activities:

Certain agricultural activities, such as cultivation, harvesting, threshing, and storage of produce, are exempt from GST. 

Additionally, supplies of agricultural produce, including cereals, fruits, vegetables, and milk, are exempt from GST.

2. Healthcare Services:

Healthcare services provided by hospitals, clinics, and medical practitioners are exempt from GST. 

This includes services related to the diagnosis, treatment, and care of humans or animals.

3. Education Services:

Educational services provided by schools, colleges, universities, and other educational institutions are exempt from GST. 

This includes both formal and non-formal education services.

4. Financial Services:

Certain financial services, such as interest on deposits, loans, advances, and insurance services, are exempt from GST. 

However, some financial services may be taxable under specific conditions.

5. Export of Goods and Services:

Export of goods and services is treated as zero-rated supplies under GST, meaning that no GST is levied on exported goods or services. 

This promotes exports and enhances competitiveness in the global market.

Concessions for Specific Categories:

1. Small Businesses:

Small businesses with an annual turnover below the threshold limit (currently ?40 lakhs for goods and ?20 lakhs for services) may avail of the composition scheme, which offers a lower tax rate and simplified compliance requirements.

2. Startups:

Startups registered under the Startup India initiative may avail of various concessions, including eligibility for the composition scheme, exemption from tax on angel investments, and tax holidays for eligible startups.

3. Textiles and Handicrafts:

Certain textile and handicraft products may qualify for concessional GST rates or exemptions to promote traditional industries, support artisans, and preserve cultural heritage.

4. Affordable Housing:

Affordable housing projects may benefit from concessional GST rates or exemptions on construction materials and services to promote the government's housing for all initiatives and boost the real estate sector.

5. Electric Vehicles:

Electric vehicles (EVs) and related components may qualify for concessional GST rates or exemptions to incentivize the adoption of eco-friendly transportation solutions and reduce carbon emissions.