ST - Government Clarifies on Services Provided by Government
AS per Entry 48 of Notification No. 25/2012-ST, dated 20.06.2012, Services provided by Government or a local authority to a business entity with a turnover up to rupees ten lakh in the preceding financial year are exempted.
Now the Government has inserted an explanation to this entry:
"Explanation.- For the purposes of this entry, it is hereby clarified that the provisions of this entry shall not be applicable to the following services, namely:-
(a) services specified in sub-clauses (i),(ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994;
(b) services by way of renting of immovable property.".
Services specified in sub-clauses (i),(ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994 are:
(i) services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than Government;
(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
(iii) transport of goods or passengers.
Notification No. , Dated: May 20, 2016