The Central Government vide Notification No. 28/2018- CT (R) dt.31st Dec, 2018 hereby makes the following amendments in the Notification No.12/2017- CT (R), dt.the 28thJune, 2017, namely:
Insertion of Serial Number 21B: Services provided by a goods transport agency, by way of transport of goods in a goods carriage, to, –
(a) a Department or Establishment of the Central Government or State Government orUnion territory; or
(b) local authority; or
(c) Governmental agencies,
which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017)only for the purpose of deducting tax underSection 51 and not for making a taxable supplyof goods or services.
Comment: Only GTA services are exempted. Care must be taken where goods transport services are provided under fixed-price contracts to these departments.
Insertion of Serial Number 27A:
Services provided by a banking company to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan DhanYojana (PMJDY).
Comment: This exemption entry is a clear indication that the said ‘services’ were taxable for the past period and continues to be taxable in all other cases of account holders. This has been a point attracting much media in the recent past about services at ‘no charge’ by banks to account holders.
Insertion of serial number 74A:
Services provided by rehabilitation professionals recognized under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961).
Insertion of meaning of “financial institution” in clause (zaa)
“(zaa) “financial institution” has the same meaning as assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934).”.