Non Taxable GST Goods and Service

The Goods and Services Tax, as defined by the Constitution is, "Any tax on supply of goods, or services or both, except for taxes on the supply of the alcoholic liquor for human consumption". The

GST Act specifies certain transactions that cannot be classified as a supply of goods or services. The purpose of this article is to elaborate on this concept in detail. The following transactions are not applicable to the terminology of "supply of goods or services" under GST.

Services by an Employee to an Employer

Supply of services by an employee to an employer is devoid of the concept of "supply of goods or services". It is also exclusive of

GST, except for certain scenarios like personal favours to an employee, or gifts above the value of 50,000.

Services of Court or Tribunal

Services by any Court or Tribunal established by any law can opt-out from registering GST as deemed forcible for the time being.

Also read: How to Calculate Aggregate Turnover for GST?

Sale of Land and Building

Sale of land and sale of completed buildings after the certificate of completion are exempted from GST. It cannot be classified as a "supply of goods or services".

Services Performed by Specified Members

The below-mentioned personnel can opt-out from registering GST for providing any services and avoid mentioning the concepts of "supply of goods or services":

Members of Parliament;
Members of State Legislature;
Members of Panchayats;
Members of Municipalities;
Members of other local authorities;
Chairperson;
A Member, or a Director in an establishment of the Central or State Governments

Activities Related to the Government

Functions of the Central Government or State Government, related to the Panchayat, is exempt from GST. Hence, it cannot be brought into the concept of "Supply of Goods or Services".

Death Rituals

Exemption of GST shall apply for services provided to the deceased, like funeral, burial, crematorium or mortuary and transportation.

Inter-State movement of modes of conveyance

Inter-state movements, carrying passengers or goods, or any movements for repair and maintenance of the vehicle, is exempted. It cannot be classified under "supply of goods or services". Point to be noted - Movements for the supply of conveyance itself, for example- the delivery of a vehicle for sale, is inclusive of the terminology and hence taxable under GST.

Actionable Claims

All the actionable claims, except lottery, betting and gambling are exclusive of the terminology of "supply of goods and services."

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Frequently Asked Questions

Common questions about Non Taxable Goods and Services under GST Regulations.

The purpose of this article is to elaborate on the transactions that cannot be classified as a "supply of goods or services" under the Goods and Services Tax (GST) law in India.

No, services provided by an employee to an employer are not considered a "supply of goods or services" under GST, except in certain scenarios like personal favors or gifts above Rs. 50,000 in value.

Yes, services provided by any Court or Tribunal established by law are exempt from GST registration for the time being.

No, the sale of land and the sale of completed buildings after the certificate of completion are exempted from GST and cannot be classified as a "supply of goods or services".

Members of Parliament, State Legislatures, Panchayats, Municipalities, and other local authorities, along with Chairpersons and Directors in Central or State Government establishments, can opt-out from registering for GST for providing services.

Yes, activities related to the government functions of the Central Government, State Government, or Panchayats are exempt from GST and cannot be considered a "supply of goods or services".

Yes, services provided for deceased individuals, such as funerals, burials, crematoriums, mortuaries, and transportation, are exempt from GST.

No, the inter-state movement of vehicles carrying passengers or goods, or for repair and maintenance purposes, is exempt from GST and cannot be considered a "supply of goods or services". However, the supply of the vehicle itself for sale is taxable under GST.

Actionable claims, except for lottery, betting, and gambling, are not considered a "supply of goods or services" and are therefore exempt from GST.

Yes, the article mentions that individuals can seek expert help from IndiaFilings to register for various types of companies, which implies that they also provide assistance with GST registration and related services.