Notification No. 12/ 2017- Central Tax (Rate) dated 28th June, 2017 (as amended from time to
time) describes exemption on services
1. Explain briefly about Exemption for Sports related Services and Pure labour contract
(Construction related) Services
Category S.I.
No.
Chapter,
Section,
Heading,
Group or
Service
Code
Description of service Rate Condition
4.Sports
related
9A Chapter 99 Services provided by and
to Fédération
Internationale de Football
Association (FIFA) and its
subsidiaries directly or
indirectly related to any of
the events under FIFA U-
17 World Cup 2017 to be
hosted in India.
Nil Provided that
Director (Sports),
Ministry of Youth
Affairs and
Sports certifies
that the services
are directly or
indirectly related
to any of the
events under
FIFA U-17 World
Cup 2017.]
9AA Chapter 99 Services provided by and
to Fédération
Internationale de Football
Association (FIFA) and its
subsidiaries directly or
indirectly related to any of
the events under FIFA U-
17 Women’s World Cup
2017 to be hosted in India.
Nil Provided that
Director (Sports),
Ministry of Youth
Affairs and
Sports certifies
that the services
are directly or
indirectly related
to any of the
events under
FIFA U-17
Women’s World
Cup 2017.]
53 Heading
9985
Services by way of
sponsorship of sporting
events organised by –
1. a national sports
federation, or its
affiliated
Nil Nil
federations, where
the participating
teams or
individuals
represent any
district, State, zone
or country;
2. Association of
Indian Universities,
Inter-University
Sports Board,
School Games
Federation of India,
All India Sports
Council for the
Deaf, Paralympic
Committee of India
or Special
Olympics Bharat;
3. the Central Civil
Services Cultural
and Sports Board;
4. as part of national
games, by the
Indian Olympic
Association;
5. under the
Panchayat Yuva
Kreeda Aur Khel
Abhiyaan Scheme
68 Heading
9992 or
Heading
9996
Services provided to a
recognized sports body by
–
1. an individual as a
player, referee,
umpire, coach or
team manager for
participation in a
sporting event
organised by a
recognized sports
body;
2. another recognized
sports body
Nil Nil
82 Heading
9996
Services by way of right to
admission to the events
organised under FIFA U-
17 World Cup 2017.
Nil Nil
82A Heading
9996
Services by way of right to
admission to the events
organised under FIFA U-
17 Women's World Cup
2020.
Nil Nil
5.Pure labour
contract
10 Heading
9954
Services provided by way
of pure labour contracts of
Nil Nil
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(Construction
related)
construction, erection,
commissioning,
installation, completion,
fitting out, repair,
maintenance, renovation,
or alteration of a civil
structure or any
otheroriginal works
pertaining to the
beneficiary-led individual
house construction or
enhancement under the
Housing for All (Urban)
Mission or Pradhan Mantri
Awas Yojana.
10A Heading
9954
Services supplied by
electricity distribution
utilities by way of
construction, erection,
commissioning, installation
of infrastructure for
extending electricity
distribution network up to
the tube well of farmer or
agriculturist for agricultural
use.
Nil Nil
11 Heading
9954
Services by way of pure
labour contracts of
construction, erection,
commissioning, or
installation of original
works pertaining to a
single residential unit
otherwise than as a part of
a residential complex
Nil Nil
41A Heading
9972
Service by way of transfer
of development rights
(herein refer TDR) or Floor
Space Index (FSI)
(including additional FSI)
on or after 1st April, 2019
for construction of
residential apartments by
a promoter in a project,
intended for sale to a
buyer, wholly or partly,
except where the entire
consideration has been
received after issuance of
completion certificate,
where required, by the
competent authority or
after its first occupation,
whichever is earlier.
The amount of GST
Nil Provided that the
promoter shall be
liable to pay tax
at the applicable
rate, on reverse
charge basis, on
such proportion
of value of
development
rights, or FSI
(including
additional FSI), or
both, as is
attributable to the
residential
apartments,
which remain un
booked on the
date of issuance
of completion
certificate, or first
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exemption available for
construction of residential
apartments in the project
under this notification shall
be calculated as under:
[GST payable on TDR or
FSI (including additional
FSI) or both for
construction of the project]
× (carpet area of the
residential apartments in
the project ÷ Total carpet
area of the residential and
commercial apartments in
the project)
occupation of the
project, as the
case may be, in
the following
manner—
[GST payable on
TDR or FSI
(including
additional FSI) or
both for
construction of
the residential
apartments in the
project but for the
exemption
contained herein]
× (carpet area of
the residential
apartments in the
project which
remain un-
booked on the
date of issuance
of completion
certificate or first
occupation ÷
Total carpet area
of the residential
apartments inthe
project.
Provided further
that tax payable
in terms of the
first proviso
hereinabove shall
not exceed 0.5
per cent of the
value in case of
affordable
residential
apartments and
2.5 per cent of
the value in case
of residential
apartments other
than affordable
residential
apartments
remaining un
booked on the
date of issuance
of completion
certificate or first
occupation.
The liability to
pay central tax on
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the said portion
of the
development
rights or FSI, or
both, calculated
as above, shall
arise on the date
of completion or
first occupation of
the project, as
the case may be,
whichever is
earlier.
41B Heading
9972
Upfront amount (called as
premium, salami, cost,
price, development
charges or by any other
name) payable in respect
of service by way of
granting of long term lease
of thirty years, or more, on
or after 1-4-2019, for
construction of residential
apartments by a promoter
in a project, intended for
sale to a buyer, wholly or
partly, except where the
entire consideration has
been received after
issuance of completion
certificate, where required,
by the competent authority
or after its first occupation,
whichever is earlier.
The amount of GST
exemption available for
construction of residential
apartments in the project
under this notification shall
be calculated as under:
[GST payable on upfront
amount (called as
premium, salami, cost,
price, development
charges or by any other
name) payable for long
term lease of land for
construction of the
project] × (carpet area
of the residential
apartments in the
project ÷ Total carpet
area of the residential
and commercial
apartments in the
Nil Provided that the
promoter shall
be liable to pay
tax at the
applicable rate,
on reverse
charge basis, on
such proportion
of upfront
amount (called
as premium,
salami, cost,
price,
development
charges or by
any other name)
paid for long
term lease of
land, as is
attributable to
the residential
apartments,
which remain un-
booked on the
date of issuance
of completion
certificate, or first
occupation of the
project, as the
case may be, in
the following
manner—
[GST payable on
upfront amount
(called as
premium, salami,
cost, price,
development
charges or by
any other name)
payable for long
term lease of
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project). land for
construction of
the residential
apartments in the
project but for the
exemption
contained herein]
× (carpet area of
the residential
apartments in the
project which
remain un-
booked on the
date of issuance
of completion
certificate or first
occupation ÷
Total carpet area
of the residential
apartments in the
project);
Provided further
that the tax
payable in terms
of the first
proviso shall not
exceed 0.5 per
cent of the value
in case of
affordable
residential
apartments and
2.5 per cent of
the value in case
of residential
apartments other
than affordable
residential
apartments
remaining un-
booked on the
date of issuance
of completion
certificate or first
occupation.
The liability to
pay central tax
on the said
proportion of
upfront amount
(called as
premium, salami,
cost, price,
development
charges or by
any other name)
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paid for long
term lease of
land, calculated
as above, shall
arise on the date
of issue of
completion
certificate or first
occupation of the
project, as the
case may be.]
1. "original works" means- all new constructions;
(i) all types of additions and alterations to abandoned or damaged structures on land
that are required to make them workable;
erection, commissioning or installation of plant, machinery or equipment or structures, whether
pre-fabricated or otherwise
2. "residential complex" means any complex comprising of a building or buildings, having more
than one single residential unit;
3. "single residential unit" means a self-contained residential unit which is designed for use,
wholly or principally, for residential purposes for one family
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