gst on government organisation

This query is : Resolved

Ashok kumar (Querist)
Follow

07 August 2017 hello, we are doing Service for government companies(Tnpsc) and my question is whether we hav to charge gst or not..n if gst is not to be charged whether v need to get any exception certificate..my service receiver also telling they are notified n gst should not be charged..please explain me n thanks in advance

Ashok kumar

Ashok kumar (Querist)
Follow

08 August 2017 anyone please suggest

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
Follow

27 July 2024 When providing services to government organizations, such as government departments or agencies, the applicability of GST can depend on several factors. Here’s a detailed explanation of whether you need to charge GST and what exceptions might apply:

### 1. **General GST Applicability to Government Organizations**

**Services to Government Organizations:**
- **GST Applicability:** Services provided to government organizations are generally subject to GST, just like services provided to any other entities.

**Specific Exemptions:**
- **Exemption Notifications:** Certain services provided to government organizations may be exempt from GST based on specific notifications or rules issued by the government. These exemptions are outlined in the GST law and various notifications issued under it.

### 2. **Exemptions and Exceptions**

**Exemption Notifications:**
- **Notification No. 12/2017-Central Tax (Rate):** This notification lists services that are exempt from GST when provided to government entities. For example, certain services related to education, healthcare, and other public services may be exempt.

**Conditions for Exemption:**
- **Service Type:** The exemption often depends on the type of service provided. Services that fall under the category of public utility or governmental functions may be exempt.
- **Recipient:** The exemption is typically for services provided to government departments or entities that are engaged in certain activities.

### 3. **Procedure for Exemption**

**Charging GST:**
- **Verify Exemption:** Before providing services, verify if the specific service you are providing is exempt from GST according to the applicable notifications.
- **Invoicing:** If the service is exempt, you should not charge GST on your invoice. However, it is important to mention the exemption on your invoice to indicate that GST is not applicable.

**Obtaining Exemption Certificate:**
- **No Standard Certificate:** There is generally no need for a formal exemption certificate in most cases. Instead, you should refer to the specific exemption notifications or circulars.
- **Documentation:** Keep copies of relevant notifications and communications for your records to substantiate the exemption status of the services you provide.

**Recipient’s Notification:**
- **Government Entity Statements:** If a government organization informs you that GST should not be charged, ensure you have a written confirmation or reference to the specific exemption notification they are referring to.

### 4. **Practical Steps**

1. **Review GST Notifications:** Check the relevant GST notifications and exemptions related to the services you are providing.
2. **Communicate with Government Entity:** Confirm with the government organization the specific exemption or reason they believe GST should not be charged. Obtain any written confirmation if available.
3. **Invoice Without GST:** If confirmed that the service is exempt, issue an invoice without GST and clearly state the applicable exemption or reference the relevant notification on the invoice.
4. **Document Compliance:** Maintain documentation of the exemption basis, including any notifications or communications, to ensure compliance and address any potential queries from tax authorities.

### Summary

1. **GST Applicability:** Generally, GST is applicable on services provided to government organizations, but specific services may be exempt based on notifications.
2. **Exemption Details:** Refer to Notification No. 12/2017-Central Tax (Rate) or other relevant notifications for details on exempt services.
3. **No Formal Certificate Needed:** Usually, no formal exemption certificate is required, but documentation of exemption basis should be maintained.
4. **Invoice Carefully:** If exempt, issue an invoice without GST and mention the applicable exemption.

**Consultation:** For precise advice, especially if dealing with complex or large-scale contracts, consulting a GST professional or tax advisor is recommended to ensure compliance with the latest rules and regulations.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now