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Taxation Central Ministry of Finance Central Goods and Services Tax Act, 2017

Amendments in Taxation for Essential Government Services

19-Oct-2023 | 13/2023- Central Tax (Rate)

Ministry of Finance has issued a vital Notification amending the earlier Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017. Effective from 20th October 2023, these changes primarily revolve around the exemption of essential services provided to Governmental Authorities from taxation, as outlined in the newly introduced serial number 3B.

Key Amendments:

Introduction of Serial Number 3B: A significant inclusion is the introduction of serial number 3B in the Table. This new entry specifies services provided to Governmental Authorities, encompassing critical areas like water supply, public health, sanitation conservancy, solid waste management, and slum improvement and upgradation. Notably, these services are now exempt from taxation, falling under the Nil tax rate.

Amendments to Serial Numbers 6, 7, 8, and 9: Several alterations have been made to serial numbers 6, 7, 8, and 9, particularly in relation to the Department of Posts and the Ministry of Railways (Indian Railways).

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