The Goods and Services Tax (GST) Act, 2017, classifies services provided by specified bodies into various categories with specific tax rates or exemptions. Here’s a breakdown:

Exempt Services:

• Services by Central/State Government/Local Authorities:Most services provided by these bodies for their core functions are exempt, like sanitation, fire fighting, public transportation (except air-conditioned coaches), etc. Exceptions include services by Department of Posts (except for speed post, express parcel post, life insurance, and agency services to non-government entities), services related to aircraft/vessels, and continuous supply exceeding Rs. 5,000 per financial year.
• Services by certain notified bodies:Several other bodies like RBI, SEBI, IRDAI, etc., are exempt for services related to their core functions. You can find the complete list in Notification No. 12/2017-Central Tax (Rate).

Services with 0% GST Act 2017:

• Pure services to government:Any service (excluding works contract or composite supplies with goods) provided to the government by individuals or bodies entrusted with Panchayat or Municipality functions under the Constitution.

Services by way of admission to cultural/entertainment events GST Act 2017 Entry fees for events like cultural shows, sports events, amusement parks, etc., are exempt.

• Specific activities like toll charges, loading/unloading of agricultural produce, transmission/distribution of electricity, etc.

Services with specific GST rates:

Renting of immovable property: GST rate depends on the type of property and annual rent. Residential property attracts nil GST, while commercial property has variable rates based on rent GST Act 2017:.

• Hotel accommodation:GST rate depends on the tariff (typically 12% for tariffs below Rs. 7,500, 18% for tariffs above Rs. 7,500).
• Professional services:Services like legal, accounting, engineering, etc., attract 18% GST Act 2017.
• Other services:A wide range of services have different GST rates based on their nature and classification.

EXAMPLE

• Government services:These can vary widely depending on the state and level of government (central, state, local). Some examples include issuing identity cards, registering births and deaths, providing education GST Act 2017.
• and healthcare, and maintaining infrastructure.
• Public utilities:These are typically provided by state-owned or private companies and include electricity, water, and sanitation.
• Financial services:These can include banking, insurance, and investment services.
• Telecom services:These include mobile phone, internet, and landline services.
• Social services:These are provided by NGOs and other non-profit organizations and can include welfare services, education, and healthcare GST Act 2017..

Once you let me know what kind of services you’re interested in, I can provide you with some specific examples from different states in India.

In the meantime, here are a few general examples of services provided by specified bodies in India:

• The Department of Motor Vehicles (DMV) in Tamil Naduissues driving licenses and vehicle registration certificates.
• The Tamil Nadu Electricity Board (TNEB)provides electricity to residents and businesses in Tamil Nadu.
• The State Bank of India (SBI)is a nationalized bank GST Act 2017  that offers a wide range of banking services in India.
• Bharti Airtelis a private telecom company that offers mobile phone, internet, and landline services in India.
• The Chennai Corporationis the local government body for the city of Chennai and provides a range of services, including sanitation, education, and healthcare GST Act 2017.

FAQ QUESTION

Q on Services Provided by Specified Bodies under GST Act 2017

The Goods and Services Tax (GST) Act, 2017, applies to a wide range of services provided by various entities. Here are some frequently asked questions about services provided by specified bodies under the Act:

Q: Which specified bodies are exempt from GST under the Act?

A: Several specified bodies are exempt from paying GST on their services. These include:

• Government Services:Most services provided by the Central and State Governments, Union Territories, and local authorities are exempt from GST Act 2017, except for specific services notified as taxable.
• Judicial Services:Services provided by courts, tribunals, and other judicial bodies are exempt from GST.
• Educational Services:Educational services provided by recognized educational institutions are generally exempt from GST.
• Charitable Activities:Services provided by charitable institutions for free or for nominal consideration are exempt from GST.
• Funeral and Burial Services:Services related to funerals, burials, crematoriums, and mortuaries are exempt from GST.

Q: What are the GST rates for services provided by banks and financial institutions?

A: Most services provided by banks and financial institutions, such as interest on deposits, loans, and advances, are exempt from GST Act 2017. However, some services like credit card services and agency services are taxable at a rate of 18%.

Q: Are services provided by housing societies liable to GST Act 2017?

A: Services provided by registered housing societies to their members for maintenance, security, and other common amenities are generally exempt from GST Act 2017. However, if the society provides commercial services such as renting out shops or parking spaces, those services are taxable at the applicable GST rate.

Q: How is GST applied to services provided by the Department of Posts?

A: Basic postal services like postcards, inland letters, book post, and registered post provided by the Department of Posts are exempt from GST. However, services like speed post, express parcel post, life insurance, and agency services provided to non-government entities are taxable at the applicable GST rate.

CASE LAWS

• Which specific bodies are you interested in?The “specified bodies” under the GST Act 2017 can refer to a wide range of entities, including government departments, local authorities, educational institutions, and public sector undertakings. Specifying the particular bodies will help me focus my search on relevant case laws.
• What types of services are you interested in?The GST Act 2017 applies to a diverse range of services, and different case laws may apply depending on the nature of the service provided. Knowing the specific services you’re interested in will allow me to provide more targeted information.
• Are you looking for case laws related to a specific issue or question?If you have a particular concern or legal query about the GST Act 2017 treatment of services provided by specified bodies, providing more context would help me identify relevant case laws that address your specific situation.

GENERAL INSURANCE BUSINESS SERVICES:

In the context of the Goods and Services Tax Act, 2017 (GST Act 2017), “general insurance business services” refers to a broad category of services associated with non-life insurance products. These services include, but are not limited to:

• Issuing and administering insurance policies:This encompasses activities like underwriting, risk assessment, policy issuance, premium collection, claims processing, and renewals.
• Surveying and risk assessment:GST Act 2017This involves evaluating potential risks associated with insured subjects, such as property or motor vehicles.
• Loss adjuster services:This includes investigating and assessing claims made by policyholders and determining the amount of compensation to be paid.
• Actuarial services:This involves using mathematical and statistical analysis  GST Act 2017to assess and manage risks and set premiums for insurance products.
• Reinsurance services:This involves transferring parts of an insurance company’s risks to another insurer for mutual risk mitigation.

It’s important to note that not all services related to general insurance are covered under the GST Act 2017. Here are some key points to remember:

• Exemptions:Services related to life insurance and health insurance are exempt from GST Act 2017.
• Input Tax Credit (ITC):Businesses using general insurance services for business purposes can avail ITC on the GST paid, except for services related to motor vehicles, vessels, or aircraft used for non-business purposes.
• GST Rate:General insurance services are generally subject to a 18% GST rate. However, specific services or products within this category GST Act 2017 might have different rates under specific notifications or rulings.

EXAMPLE

State: Maharashtra

• Crop Insurance:With Maharashtra being a major agriculture hub, offering customized crop insurance solutions for different crops and weather patterns becomes crucial.
• Micro Insurance:Providing affordable micro insurance options for rural populations in Maharashtra can cover livestock, health, and small businesses GST Act 2017.
• Cyber Insurance:As Mumbai is a financial center, businesses need tailored cyber insurance policies to cover cyberattacks and data breaches.

State: Kerala

• Travel Insurance:With Kerala being a popular tourist destination, travel insurance plans catering to domestic and international tourists, including monsoon season coverage, can be beneficial.
• Home Insurance:With frequent natural disasters like floods and landslides, offering comprehensive home insurance policies with disaster coverage is essential for Kerala residents GST Act 2017.
• Fishing Boat Insurance:Protecting the livelihoods of fishermen through specialized boat insurance for damage and loss due to storms and equipment malfunctions is crucial for Kerala’s coastal communities.

State: Tamil Nadu

• Health Insurance:Providing affordable health insurance plans with focus on critical illness coverage and cashless hospitalization options can cater to the healthcare needs of Tamil Nadu’s diverse population.
• Education Insurance:Offering child education insurance plans tailored to Tamil Nadu’s education system and future career aspirations can be valuable for parents GST Act 2017.
• Vehicle Insurance:With a high density of two-wheelers and autos in Tamil Nadu GST Act 2017, insurance plans designed for these specific vehicles and their riders can be beneficial.

Remember: These are just a few examples, and the specific services offered by insurance companies will vary depending on the state’s economic landscape, demographics, and risk profile.

FAQ QUESTION

AQ: General Insurance Business Services under GST Act 2017

Here’s an overview of frequently asked questions about general insurance business services under the Goods and Services Tax (GST) Act 2017 in India:

Q: What services are classified as “general insurance” under GST Act 2017?

A: General insurance covers a wide range of services offered by insurers, including:

• Fire insurance
• Marine insurance
• Motor vehicle insurance
• Theft insurance
• Liability insurance
• Crop insurance
• Travel insurance
• Miscellaneous insurance (e.g., burglary, breakdown assistance)

Q: What is the GST Act 2017  rate on general insurance services?

A: Currently, the GST  Act 2017 rate on general insurance services is 18%. This applies to both the premium paid by policyholders and the service fees charged by insurance brokers or other intermediaries.

Q: Can businesses claim input tax credit (ITC) on GST paid for general insurance policies?

A: Yes, but with some limitations:

• Businesses can claim ITC on GST paid for general insurance policies related to their business activities.
• However, ITC is not allowed for life insurance, health insurance, and personal insurance policies.
• Additionally, ITC is not allowed for insurance services related to motor vehicles, vessels, or aircraft used for non-business purposes.

Q: Do insurance brokers need to register under GST Act 2017?

A: Yes, any insurance broker whose aggregate turnover exceeds the threshold limit of Rs. 20 lakhs in a financial year needs to register under GST Act 2017  .

Q: What are the record-keeping requirements for general insurance business services under GST Act 2017?

A: Insurance companies and brokers need to maintain detailed records of their transactions, including invoices, debit notes, credit notes, and payment receipts. They must also file regular GST returns, as specified by the authorities.

Q: Where can I find more information about GST and general insurance services?

A: You can access official resources like the Central Board of Indirect Taxes & Customs (CBIC) website and the GST Act 2017 Council website for detailed information, notifications, and clarifications. Additionally, consulting with a tax advisor specializing in GST and insurance can provide tailored guidance for your specific needs.

CASE LAWS

The applicability of Goods and Services Tax (GST Act 2017) to general insurance business services under the GST Act 2017 has been the subject of various case laws and rulings. Here’s a summary of some key points:

Supply of Services under GST:

• General insurance services are generally considered “supply of services” under the GST Act 2017.This includes services like issuing policies, settling claims, risk assessment, and advisory services.
• Some exceptions exist:Services related to specific motor vehicles, vessels, or aircraft used for personal purposes are exempt from GST. Additionally, services provided by an employer to its employees for parental medical insurance may not be considered a supply if certain conditions are met.

Taxability:

• The GST rate on general insurance services is 18%.However, certain specific services like agriculture insurance have lower rates.
• No Input Tax Credit (ITC) is allowed on insurance services used for motor vehicles, vessels, or aircraft for personal purposes.

Key Case Laws:

• Maharashtra AAR – POSCO India Pune Processing Center Private Limited (POSCO IPPC) [GST-ARA-36/2018-19/B-110 Mumbai dated 07-09-2018]: GST Act 2017This case clarified that an employer facilitating group health insurance for employees and recovering part of the premium may not be considered a “supply of service” if it’s not mandatory and doesn’t directly impact the employer’s business.
• Maharashtra AAR – Jindal Power Thermal Corporation Limited (TTPCL) [GST-ARA-99/2019-20/B-92 dated 21.11.2021]:This case ruled that merely arranging insurance cover for employees by recovering premiums doesn’t qualify as a “supply of service” if it’s not mandatory and not a core business activity GST Act 2017.