Mega Exemption Notification No.25/2012-ST dated 20-6-2012

Following is MEGA EXEMPTION NOTIFICATION issued by CBEC vide Notification No.25/2012-ST dated 20-06-2012 as amended by NOTIFICATION NO.20/2015-ST, DATED 21-10-2015]

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India
Ministry of Finance
(Department of Revenue)

Notification No. 25/2012-Service Tax

New Delhi, the 20^th June, 2012

G.S.R……(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act) and in supersession of notification number 12/2012- Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 210(E), dated the 17th March, 2012, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the following taxable services from the whole of the service tax leviable thereon under section 66B of the said Act, namely:—

Services provided to the United Nations or a specified international organization;

(i)

Health care services by a clinical establishment, an authorised medical practitioner or para-medics;

(ii)

Services provided by way of transportation of a patient in an ambulance, other than those specified in (i) above;]

2A.

Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation;]

2B.

Services provided by operators of the Common Bio-medical Waste Treatment Facility to a clinical establishment by way of treatment or disposal of bio-medical waste or the processes incidental thereto;]

Services by a veterinary clinic in relation to health care of animals or birds;

Services by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) by way of charitable activities;

Services by a person by way of—

(a)

renting of precincts of a religious place meant for general public; or

(b)

conduct of any religious ceremony;

5A.

Services by a specified organisation in respect of a religious pilgrimage facilitated by the Ministry of External Affairs of the Government of India, under bilateral arrangement;]

Services provided by—

(a)

an arbitral tribunal to—

(i) any person other than a business entity; or

(ii) a business entity with a turnover up to rupees ten lakh in the preceding financial year;

(b)

an individual as an advocate or a partnership firm of advocates by way of legal services to,—

(i) an advocate or partnership firm of advocates providing legal services;

(ii) any person other than a business entity; or

(iii) a business entity with a turnover up to rupees ten lakh in the preceding financial year; or

(c)

a person represented on an arbitral tribunal to an arbitral tribunal;

[***]

Services by way of training or coaching in recreational activities relating to arts, culture or sports;

Services provided,—

(a)

by an educational institution to its students, faculty and staff;

(b)

to an educational institution, by way of,—

(i) transportation of students, faculty and staff;

(ii) catering, including any mid-day meals scheme sponsored by the Government;

(iii) security or cleaning or house-keeping services performed in such educational institution;

(iv) services relating to admission to, or conduct of examination by, such institution;]

9A.

Any services provided by,—

(i)

the National Skill Development Corporation set up by the Government of India;

(ii)

a Sector Skill Council approved by the National Skill Development Corporation;

(iii)

an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;

(iv)

a training partner approved by the National Skill Development Corporation or the Sector Skill Council,

in relation to (a) the National Skill Development Programme implemented by the National Skill Development Corporation; or (b) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (c) any other Scheme implemented by the National Skill Development Corporation.]

10.

Services provided to a recognised sports body by—

(a)

an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body;

(b)

another recognised sports body;

11.

Services by way of sponsorship of sporting events organised,—

(a)

by a national sports federation, or its affiliated federations, where the participating teams or individuals represent any [district, State, zone or Country];

(b)

by Association of Indian Universities, Inter-University Sports Board, School Games Federation of India, All India Sports Council for the Deaf, Paralympic Committee of India or Special Olympics Bharat;

(c)

by Central Civil Services Cultural and Sports Board;

(d)

as part of national games, by Indian Olympic Association; or

(e)

under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme;

12.

Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of—

(a)

[***];

(b)

a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);

(c)

[***];

(d)

canal, dam or other irrigation works;

(e)

pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal; or

(g)

[***];

13.

Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,—

(a)

a road, bridge, tunnel, or terminal for road transportation for use by general public;

(b)

a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;

(c)

a building owned by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) and meant predominantly for religious use by general public;

(d)

a pollution control or effluent treatment plant, except located as a part of a factory; or

a structure meant for funeral, burial or cremation of deceased;

14.

Services by way of construction, erection, commissioning, or installation of original works pertaining to,—

(a)

[***] railways, including monorail or metro;

(b)

a single residential unit otherwise than as a part of a residential complex;

(c)

low-cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the ‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India;

(d)

post-harvest storage infrastructure for agricultural produce including a cold storages for such purposes; or

(e)

mechanised food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages;

[15.

Services provided by way of temporary transfer or permitting the use or enjoyment of a copyright,—

(a)

covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 (14 of 1957), relating to original literary, dramatic, musical or artistic works; or

(b)

of cinematograph films for exhibition in a cinema hall or cinema theatre;]

[16.

Services by an artist by way of a performance in folk or classical art forms of (i) music, or (ii) dance, or (iii) theatre, if the consideration charged for such performance is not more than one lakh rupees:

Provided that the exemption shall not apply to service provided by such artist as a brand ambassador. ]

17.

Services by way of collecting or providing news by an independent journalist, Press Trust of India or United News of India;

[18.

Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent;]

[19.

Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year;]

19A.

Services provided in relation to serving of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 (63 of 1948), having the facility of air-conditioning or central air-heating at any time during the year;]

20.

Services by way of transportation by rail or a vessel from one place in India to another of the following goods—

(a)

[***]

(b)

relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;

(c)

defence or military equipments;

(d)

[***]

(e)

[***]

(g)

newspaper or magazines registered with the Registrar of Newspapers;

(g)

railway equipments or materials;

(h)

agricultural produce;

[(i)

milk, salt and food grain including flours, pulses and rice;]

[(j)

chemical fertilizer, organic manure and oil cakes;

(k)

cotton, ginned or baled.]

[21.

Services provided by a goods transport agency, by way of transport in a goods carriage of,—

(a)

agricultural produce;

(b)

goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

(c)

goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred fifty;

(d)

milk, salt and food grain including flours, pulses and rice;]

(e)

chemical fertilizer, organic manure and oil cakes;]

(f)

newspaper or magazines registered with the Registrar of Newspapers;

(g)

relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or

(h)

defence or military equipments;]

(i)

cotton, ginned or baled.]

22.

Services by way of giving on hire—

(a)

to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or

(b)

to a goods transport agency, a means of transportation of goods;

23.

Transport of passengers, with or without accompanied belongings, by—

(a)

air, embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal;

(b)

non-airconditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire; or]

(c)

ropeway, cable car or aerial tramway;

24.

[***]

25.

Services provided to Government, a local authority or a governmental authority by way of—

(a)

water supply, public health, sanitation conservancy, solid waste management or slum improvement and up-gradation; or]

(b)

repair or maintenance of [a vessel];

26.

Services of general insurance business provided under following schemes—

(a)

Hut Insurance Scheme;

(b)

Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna (earlier known as Integrated Rural Development Programme);

(c)

Scheme for Insurance of Tribals;

(d)

Janata Personal Accident Policy and Gramin Accident Policy;

(e)

Group Personal Accident Policy for Self-Employed Women;

(f)

Agricultural Pumpset and Failed Well Insurance;

(g)

premia collected on export credit insurance;

(h)

Weather Based Crop Insurance Scheme or the Modified National Agricultural Insurance Scheme, approved by the Government of India and implemented by the Ministry of Agriculture;

(i)

Jan Arogya Bima Policy;

(j)

National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana);

(k)

Pilot Scheme on Seed Crop Insurance;

(l)

Central Sector Scheme on Cattle Insurance;

(m)

Universal Health Insurance Scheme;

(n)

Rashtriya Swasthya Bima Yojana; or

(o)

Coconut Palm Insurance Scheme;

[(p)

Pradhan Mantri Suraksha Bima Yojana;]

26A.

Services of life insurance business provided under following schemes—

(a)

Janashree Bima Yojana (JBY); or

(b)

Aam Aadmi Bima Yojana (AABY);]

[(c)

life micro-insurance product as approved by the Insurance Regulatory and Development Authority, having maximum amount of cover of fifty thousand rupees.]

(d)

Varishtha Pension Bima Yojana; ]

(e)

Pradhan Mantri Jeevan Jyoti Bima Yojana;

(f)

Pradhan Mantri Jan Dhan Yojana;]

26B.

Services by way of collection of contribution under Atal Pension Yojana (APY).]

27.

Services provided by an incubatee up to a total turnover of fifty lakh rupees in a financial year subject to the following conditions, namely:—

(a)

the total turnover had not exceeded fifty lakh rupees during the preceding financial year; and

(b)

a period of three years has not been elapsed from the date of entering into an agreement as an incubatee;

28.

Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribu-tion—

(a)

as a trade union;

(b)

for the provision of carrying out any activity which is exempt from the levy of service tax; or

(c)

up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex;

29.

Services by the following persons in respective capacities—

(a)

sub-broker or an authorised person to a stock broker;

(b)

authorised person to a member of a commodity exchange;

(c)

[***];

(d)

[***];

(e)

[***];

(f)

selling agent or a distributor of SIM cards or recharge coupon vouchers;

(g)

business facilitator or a business correspondent to a banking company with respect to Basic Savings Bank Deposit Account covered by Pradhan Mantri Jan Dhan Yojana in the banking company’s rural area branch, by way of account opening, cash deposits, cash withdrawals, obtaining e-life certificate, Aadhar seeding;

(ga)

any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in clause (g);

(gb)

business facilitator or a business correspondent to an insurance company in a rural area; or ]

(h)

sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt;

30.

Carrying out an intermediate production process as job work in relation to—

(a)

agriculture, printing or textile processing;

(b)

cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of the Central Excise Tariff Act, 1985 (5 of 1986);

(c)

[ any goods excluding alcoholic liquors for human consumption, ] on which appropriate duty is payable by the principal manufacturer; or

(d)

processes of electroplating, zinc plating, anodizing, heat treatment, powder coating, painting including spray painting or auto black, during the course of manufacture of parts of cycles or sewing machines upto an aggregate value of taxable service of the specified processes of one hundred and fifty lakh rupees in a financial year subject to the condition that such aggregate value had not exceeded one hundred and fifty lakh rupees during the preceding financial year;

31.

Services by an organiser to any person in respect of a business exhibition held outside India;

32.

[***];

33.

Services by way of slaughtering of [***] animals;

34.

Services received from a provider of service located in a non-taxable territory by—

(a)

Government, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession;

(b)

an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) for the purposes of providing charitable activities; or

(c)

a person located in a non-taxable territory;

35.

Services of public libraries by way of lending of books, publications or any other knowledge- enhancing content or material;

36.

Services by Employees’ State Insurance Corporation to persons governed under the Emp-loyees’ Insurance Act, 1948 (34 of 1948);

37.

Services by way of transfer of a going concern, as a whole or an independent part thereof;

38.

Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets;

39.

Services by a governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243W of the Constitution;

[40.

Services by way of loading, unloading, packing, storage or warehousing of rice, cotton, ginned or baled;

41.

Services received by the Reserve Bank of India, from outside India in relation to management of foreign exchange reserves;

42.

Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India;]

43.

Services by operator of Common Effluent Treatment Plant by way of treatment of effluent;

44.

Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables;

45.

Services by way of admission to a museum, national park, wild life sanctuary, tiger reserve or zoo;

46.

Service provided by way of exhibition of movie by an exhibitor to the distributor or an association of persons consisting of the exhibitor as one of its members.]

47.

Services by way of right to admission to,—

(i)

exhibition of cinematographic film, circus, dance, or theatrical performance including drama or ballet;

(ii)

recognised sporting event;

(iii)

award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event, where the consideration for admission is not more than Rs. 500 per person.]

Definitions.

For the purpose of this notification, unless the context otherwise requires, –

(a)

“Advocate” has the meaning assigned to it in clause (a) of sub-section (1) of section 2 of the Advocates Act, 1961 (25 of 1961);

(b)

“appropriate duty” means duty payable on manufacture or production under a Central Act or a State Act, but shall not include ‘Nil’ rate of duty or duty wholly exempt;

(c)

“arbitral tribunal” has the meaning assigned to it in clause (d) of section 2 of the Arbitration and Conciliation Act, 1996 (26 of 1996);

(d)

“authorised medical practitioner” means a medical practitioner registered with any of the councils of the recognised system of medicines established or recognized by law in India and includes a medical professional having the requisite qualification to practice in any recognised system of medicines in India as per any law for the time being in force;

(e)

“authorised person” means any person who is appointed as such either by a stock broker (including trading member) or by a member of a commodity exchange and who provides access to trading platform of a stock exchange or a commodity exchange as an agent of such stock broker or member of a commodity exchange;

(f)

[***]

(g)

“banking company” has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934);

(ga)

Basic Savings Bank Deposit Account means a Basic Savings Bank Deposit Account opened under the guidelines issued by Reserve Bank of India relating thereto; ]

(h)

“brand ambassador” means a person engaged for promotion or marketing of a brand of goods, service, property or actionable claim, event or endorsement of name, including a trade name, logo or house mark of any person;

(i)

“business facilitator or business correspondent” means an intermediary appointed under the business facilitator model or the business correspondent model by a banking company or an insurance company under the guidelines issued by Reserve Bank of India;

(j)

“clinical establishment” means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases;

(k)

“charitable activities” means activities relating to—

(i)

public health by way of—

(a)

care or counselling of (i) terminally ill persons or persons with severe physical or mental disability, (ii) persons afflicted with HIV or AIDS, or (iii) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or

(b)

public awareness of preventive health, family planning or prevention of HIV infection;

(ii)

advancement of [religion, spirituality or yoga];

(iii)

advancement of educational programmes or skill development relating to,—

(a)

abandoned, orphaned or homeless children;

(b)

physically or mentally abused and traumatized persons;

(c)

prisoners; or

(d)

persons over the age of 65 years residing in a rural area;

(iv)

preservation of environment including watershed, forests and wildlife; [***]

(v)

[***]

(l)

“commodity exchange” means an association as defined in section 2(j) and recognized under section 6 of the Forward Contracts (Regulation) Act, 1952 (74 of 1952);

(m)

“contract carriage” has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(n)

“declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air-conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit;

(o)

“distributor or selling agent” has the meaning assigned to them in clause (c) of rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of India in the Ministry of Home Affairs, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i), vide number G.S.R. 278(E), dated the 1st April, 2010 and shall include distributor or selling agent authorised by the lottery organising State;

(oa)

“educational institution” means an institution providing services specified in clause (l) of section 66D of the Finance Act, 1994 (32 of 1994);]

(p)

“general insurance business” has the meaning assigned to it in clause (g) of section 3 of General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);

(q)

“general public” means the body of people at large sufficiently defined by some common quality of public or impersonal nature;

(r)

“goods carriage” has the meaning assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(s)

“governmental authority” means an authority or a board or any other body :

(i)

set up by an Act of Parliament or a State Legislature; or

(ii)

established by Government,

with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution;]

(t)

“health care services” means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma;

(u)

“incubatee” means an entrepreneur located within the premises of a Technology Business Incubator (TBI) or Science and Technology Entrepreneurship Park (STEP) recognised by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India and who has entered into an agreement with the TBI or the STEP to enable himself to develop and produce hi-tech and innovative products;

(v)

“insurance company” means a company carrying on life insurance business or general insurance business;

(w)

“legal service” means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority;

(x)

“life insurance business” has the meaning assigned to it in clause (11) of section 2 of the Insurance Act, 1938 (4 of 1938);

(xa)

“life micro-insurance product” shall have the meaning assigned to it in clause (e) of regulation 2 of the Insurance Regulatory and Development Authority (Micro-insurance) Regulations, 2005;]

(xaa)

“national park” has the meaning assigned to it in the clause (21) of the section 2 of the Wild Life (Protection) Act, 1972 (53 of 1972);]

(y)

“original works” means has the meaning assigned to it in Rule 2A of the Service Tax (Determination of Value) Rules, 2006;

(z)

“principal manufacturer” means any person who gets goods manufactured or processed on his account from another person;

(za)

“radio taxi” means a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS);

(zaa)

“recognised sports body” means – (i) the Indian Olympic Association, (ii) Sports Authority of India, (iii) a national sports federation recognised by the Ministry of Sports and Youth Affairs of the Central Government, and its affiliated federations, (iv) national sports promotion organisations recognised by the Ministry of Sports and Youth Affairs of the Central Government, (v) the International Olympic Association or a federation recognised by the International Olympic Association or (vi) a federation or a body which regulates a sport at international level and its affiliated federations or bodies regulating a sport in India;]

(zab)

“recognised sporting event” means any sporting event,—

(i)

organised by a recognised sports body where the participating team or individual represent any district, State, zone or country;

(ii)

covered under entry 11;]

(zb)

“religious place” means a place which is primarily meant for conduct of prayers or worship pertaining to a religion, meditation, or spirituality;

(zc)

“residential complex” means any complex comprising of a building or buildings, having more than one single residential unit;

(zd)

“rural area” means the area comprised in a village as defined in land revenue records, excluding—

the area under any municipal committee, municipal corporation, town area committee, cantonment board or notified area committee; or

any area that may be notified as an urban area by the Central Government or a State Government;

(ze)

“single residential unit” means a self-contained residential unit which is designed for use, wholly or principally, for residential purposes for one family;

(zf)

“specified international organization” means an international organization declared by the Central Government in pursuance of section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), to which the provisions of the Schedule to the said Act apply;

[(zfa)

“specified organisation” shall mean,—

(a)

Kumaon Mandal Vikas Nigam Limited, a Government of Uttarakhand Undertaking; or

(b)

‘Committee’ or ‘State Committee’ as defined in section 2 of the Haj Committee Act, 2002 (35 of 2002);]

(zg)

“state transport undertaking” has the meaning assigned to it in clause (42) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(zh)

“sub-broker” has the meaning assigned to it in sub-clause (gc) of clause 2 of the Securities and Exchange Board of India (Stock Brokers and Sub-brokers) Regulations, 1992;

[(zi)

“tiger reserve” has the meaning assigned to it in clause (e) of section 38K of the Wild Life (Protection) Act, 1972 (53 of 1972);

(zj)

“trade union” has the meaning assigned to it in clause (h) of section 2 of the Trade Unions Act, 1926 (16 of 1926);

(zk)

“wild life sanctuary” means sanctuary as defined in the clause (26) of the section 2 of the Wild Life (Protection) Act, 1972 (53 of 1972);

(zl)

“zoo” has the meaning assigned to it in the clause (39) of the section 2 of the Wild Life (Protection) Act, 1972 (53 of 1972).]

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