Page 25 - Ch8_ EXEMPTION

Answer:-

(i) Legal Provision:-
Ü Supply of service by unincorporated body or a non-profit entity registered under any law to its
own members by way of reimbursement of charges or share of contribution upto ₹ 7,500 per
month per member for sourcing goods or services from a third person for common use of its
members in a housing society or residential complex is exempt.

Discussion & Conclusion:-
a) In the first case, Rs. 9000 contribution per month per member received by Gokul Residents' Welfare
Association exceeds ₹ 7,500 & hence, exemption is not available. Thus, GST @18% shall be payable
on entire contribution of ₹ 9000/- per month per member.

b) In second case, services provided by such association are exempt since maintenance charges Rs.
6500 collected per month per member do not exceed ₹ 7500.
(ii) Legal Provision:-
Ø Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or

lodging purposes, are taxable irrespective of the amount.
Discussion & Conclusion:-
Ø In given case, GST is payable by Holiday Guest House on the booking done by Mr. X.
Authors Note:

Services provided by hotel, inn, Guest house, Club or campsite for residential or lodging purpose having
value below or equal to ₹ 1000 per day was Exempt, but now exemption has withdrawn & full amount is
taxable

CCP 08.14.26.00
Examine whether GST is exempted on following independent supplies of services:-
(i)Service provided by a private transport operator to Scholar Boys Higher Secondary School in
relation to transportation of students to and from the school.

(ii)Services provided by way of vehicle parking to general public in a shopping mall.
(iii)Babloo Transporters, a Goods Transport Agency, transported relief materials meant for victims of
Kerala floods, a natural disaster, by road from Delhi to Ernakulam, for a company.
(iv)Keyan Enterprises, an event organizer, provided services to Breathing Wall Ltd. by way of
organizing business exhibition in New Delhi as part of Make in India initiative. Keyan Enterprises

claims that it is not required to pay GST as services provided by way of organizing business exhibition
are exempt from GST. Examine the technical veracity of the claim of Keyan Enterprises, in the given
case.

(v)Clean and Green Pvt. Ltd. provided the bio-medical waste treatment facility to veterinary clinic. Is it
a taxable supply of service? If so, will GST be levied? [Study Mat]
Answer:
(i) Yes. Services provided to an educational institution by way of transportation of students are exempted
from GST.

(ii)No. Services provided by way of vehicle parking to general public are not exempted from GST. Therefore,
GST is payable on the same.
(iii)Yes. Services provided by a goods transport agency by way of transport of relief materials meant for
victims of natural or manmade disasters in a goods carriage are exempt from GST & thus, services

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