This circular provides clarity on two GST issues. First, it states that accommodation services offered by Air Force, Army, Navy, paramilitary and police messes to their personnel or to any non-business entity are exempt under Notification 12/2017, provided these messes qualify as government entities supplying services other than those specifically excluded from exemption.

Second, it clarifies that incentives paid by MeitY to acquiring banks for promoting RuPay debit cards and low-value BHIM-UPI transactions are not taxable. Although the payment is linked to transaction values, it is treated as a subsidy directly linked to the price of the service and not as consideration to the bank for any service supplied to the Government. Therefore, no GST is applicable on such incentives.