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Microlesson · 5-min read

Specific Exemption Entries – Electricity, Incubatees, R&D, Cold Chain, Sports & Public Services

# Specific GST Exemption Entries (Notification 12/2017-CT(R))

The following entries from the master exemption notification carve out specific services from GST. Each entry must be read with its conditions — partial fulfilment generally makes the supply taxable.

## Entry 25A – Ancillary Services by Electricity Utilities

Services incidental or ancillary to transmission/distribution of electricity provided by electricity transmission/distribution utilities to their consumers are exempt. Covered:

  • Renting of metering equipment
  • Testing of meters / transformers / capacitors
  • Releasing electricity connection
  • Shifting of meters / service lines
  • Issuing duplicate bills

Trap: Prior to insertion of Entry 25A, these were taxable. Now they ride on the main exemption for electricity transmission/distribution.

## Entry 44 – Incubatee Exemption

Services supplied by an incubatee are exempt up to ₹50 lakh turnover in an FY, subject to:

1. Total turnover in the preceding FY did not exceed ₹50 lakh; AND

2. 3 years have not elapsed from the date of agreement as an incubatee.

Incubatee = an entrepreneur located within a TBI / STEP recognised by NSTEDB (Dept. of Science & Technology, GoI), having an agreement with TBI/STEP to develop hi-tech & innovative products.

## Entry 44A – R&D Services against Grants

Research & development services supplied against consideration received as grants by:

(a) A Government Entity; or

(b) A research association / university / college / other institution notified under clauses (ii) or (iii) of Sec 35(1) of Income-tax Act, 1961.

Condition: The notification under Sec 35(1)(ii)/(iii) must be in force at the time of supply of R&D service.

## Entry 48 – TBI / STEP / Bio-incubator Outward Supplies

Taxable services provided by TBI/STEP (recognised by NSTEDB) or bio-incubators recognised by BIRAC (under Department of Biotechnology) are exempt.

## Entry 49 – Independent Journalists / News Agencies

Services by way of collecting or providing news by an independent journalist, PTI, or UNI are exempt.

## Entry 50 – Public Libraries

Lending of books, publications, or other knowledge-enhancing content/material by public libraries is exempt.

## Entry 52 – Business Exhibition Outside India

Services by an organiser for a business exhibition held outside India are exempt.

## Entry 57 – Post-harvest Processing of Fruits & Vegetables

Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables — provided these do not change or alter the essential characteristics — are exempt.

## Entry 58 – Cold Chain Knowledge Dissemination

Services by the National Centre for Cold Chain Development (Ministry of Agriculture) for cold chain knowledge dissemination — exempt.

## Entry 59 – Foreign Diplomatic Mission

Services by a foreign diplomatic mission located in India — exempt.

## Entry 61A – National Permit to Goods Carriage

Granting of National Permit to a goods carriage to operate through-out India / contiguous States — exempt.

## Entry 65A – RTI Act Information

Services by way of providing information under the RTI Act, 2005 — exempt.

## Entry 68 – Services to Recognised Sports Bodies

Services provided to a recognised sports body by:

(a) an individual as a player, referee, umpire, coach, or team manager for participation in a sporting event organised by a recognised sports body;

(b) another recognised sports body.

Taxable (NOT covered):

  • Selectors, commentators, curators, technical experts (individuals)
  • A player's service to a franchisee that is not a recognised sports body

## Entry 76 – Public Conveniences

Services by way of public conveniences — bathroom, washrooms, lavatories, urinal, or toilets — exempt.

## Note on LLP

For this exemption notification, an LLP registered under the LLP Act, 2008 is treated as a partnership firm / firm.

## GST on Honorarium to Guest Anchors

  • GST applies to honorarium paid to guest anchors for services on TV channels (e.g., Sansad TV).
  • Guest anchors with aggregate turnover ≤ ₹20 lakh (₹10 lakh in Special Category States) need not register / pay GST (basic threshold benefit).

Worked example

### Example 1

Incubatee turnover trap (Entry 44): Mr. X entered an incubatee agreement with an NSTEDB-recognised TBI on 1-Apr-2022. His turnover was ₹40 lakh in FY 2023-24 and reached ₹48 lakh in FY 2024-25.

  • Condition 1: Preceding FY (2023-24) turnover ≤ ₹50 lakh ✓
  • Condition 2: 3 years from agreement (1-Apr-2025) – still within 3 years ✓
  • Exemption available up to ₹50 lakh in FY 2024-25. Supplies beyond ₹50 lakh in the same FY are taxable.

### Example 2

Sporting body (Entry 68): A cricketer (individual) plays for the Indian team in a BCCI-organised event → exempt (player to recognised sports body). The same cricketer plays IPL for a franchise team → taxable (franchisee is not a recognised sports body). His Star Sports commentary contract → taxable (commentator).

### Example 3

Electricity utility (Entry 25A): Discom issues a duplicate bill and charges ₹50 + GST – after Entry 25A insertion, this is exempt (incidental/ancillary to distribution of electricity).

⚠️ Common exam mistakes

  • Treating selectors / commentators / curators / technical experts as exempt under Entry 68 — only player, referee, umpire, coach, team manager qualify.
  • Forgetting the dual condition under Entry 44 — both ₹50 lakh preceding FY turnover AND 3-year window must be satisfied.
  • Assuming R&D grants from any university qualify under Entry 44A — only those notified under Sec 35(1)(ii)/(iii) of IT Act, 1961, qualify.
  • Ignoring that Entry 25A applies only to electricity transmission/distribution utilities — services by non-utilities are not covered.
  • Treating a guest anchor's honorarium as exempt by default — it is taxable; only the ₹20 lakh/₹10 lakh basic threshold provides relief from registration.
Reference: Notification 12/2017-CT(R) – Various Entries — Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 – Entries 25A, 44, 44A, 48, 49, 50, 52, 57, 58, 59, 61A, 65A, 68, 76
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