This circular provides clarification on the applicability and exemption of GST for various services in line with the decisions taken in the 53rd GST Council meeting held on 22nd June 2024.

It clarifies that services by the Ministry of Railways such as sale of platform tickets, retiring room facilities, cloakroom, and battery-operated car services to the general public are exempt from GST, and the supply of services between different railway zones is also exempt. Transactions between Special Purpose Vehicles (SPVs) and Indian Railways are regularized on an “as is where is” basis for past periods.

The circular confirms that statutory collections by RERA are exempt as they fall under the definition of a “governmental authority.” Incentives shared under the RuPay Debit Card and BHIM-UPI promotion schemes are treated as subsidies and not taxable.

Further, it clarifies that reinsurance of specified general and life insurance schemes, including government-funded ones, and retrocessions are exempt from GST. Additionally, accommodation services such as hostels and service apartments are exempt if the monthly rent does not exceed ₹20,000 per person and the stay is for at least 90 continuous days.