This circular provides clarifications on the GST treatment of certain services as decided in the 25th meeting of the GST Council, to ensure consistent application of GST provisions.

It clarifies that hostel accommodation provided by trusts is not covered under charitable activities. However, such accommodation is exempt from GST if the declared tariff per unit is below ₹1,000 per day, in line with the general exemption for low-value lodging services.

The circular clarifies that fees, penalties, or amounts paid to Consumer Disputes Redressal Commissions are not subject to GST, as these commissions function as quasi-judicial bodies and their activities do not constitute supply of goods or services.

Services such as elephant or camel rides are clarified to be taxable at 18% under passenger transport services and not as recreational services. Rental or leasing of self-propelled access equipment, with or without an operator, is taxable at the same rate as applicable to the supply of such goods, which in the given case is 28%.

It further clarifies that healthcare services provided by hospitals, including services of doctors and consultants and food supplied to in-patients as part of treatment, are exempt from GST. However, food supplied to non-admitted patients or visitors is taxable. Lastly, the circular clarifies that “cost petroleum” is not consideration for services provided to the Government and is not taxable per se, though it may be relevant in determining inter se service transactions within joint ventures.