# Miscellaneous GST Exemptions

## Transfer of Going Concern

Services by way of transfer of a going concern, as a whole or an independent part thereof → EXEMPT

## Transit Cargo

Transit cargo to/from Nepal and Bhutan → EXEMPT

## Electricity Transmission/Distribution

Transmission or distribution of electricity by an electricity transmission or distribution utility → EXEMPT

### Taxable Services by DISCOMs (Even though electricity itself is exempt)

The following services by DISCOMs are TAXABLE:

Application fees for releasing connection
Rental charges (for electricity meter)
Testing fees / Labour charges
Duplicate bill fee
Charges for replacement of meter

## Technology Business Incubator (TBI)

Services by TBI/STEP/Bio-Incubator recognised by Department of Science and Technology → EXEMPT
Services to a Technology Business Incubatee (subject to conditions like turnover not exceeding ₹50 crore) → EXEMPT

## Information / Public Welfare Services

News agency services to print/electronic media → EXEMPT (subject to conditions)
Public libraries services (lending of books, publications, knowledge-enhancing content) → EXEMPT
Foreign diplomatic mission services in India → EXEMPT

## Trade Promotion

Services by Government of India for organising business exhibitions held outside India → EXEMPT

Worked example

### Example 1

Example 1: ABC Ltd. transfers its entire manufacturing unit (as a going concern) to XYZ Ltd. for ₹50 crore.

Answer: EXEMPT - Transfer of going concern is exempt from GST.

### Example 2

Example 2: A DISCOM charges ₹2,000 as application fee for a new electricity connection.

Answer: TAXABLE - Application fees and other ancillary charges by DISCOMs are taxable even though electricity distribution itself is exempt.

### Example 3

Example 3: Indian Railways transports cargo from India to Bhutan as transit cargo.

Answer: EXEMPT - Transit cargo to Bhutan is specifically exempt.

⚠️ Common exam mistakes

Treating all DISCOM charges as exempt - only the actual transmission/distribution service is exempt; ancillary charges are taxable.
Confusing 'transfer of going concern' (exempt - service) with sale of individual assets (which may be taxable supplies of goods).
Assuming all cargo to neighbouring countries is exempt - only Nepal and Bhutan transit cargo is covered.
Forgetting that TBI exemption is subject to turnover and other conditions of the incubatee.

Bare-Act text Entries 25, 2 · Notification No. 12/2017-Central Tax (Rate) · click to expand

Transmission or distribution of electricity by an electricity transmission or distribution utility is exempt. Services by way of transfer of a going concern, as a whole or an independent part thereof, is exempt.

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GST Exemptions - Miscellaneous (Going Concern, Cargo to Nepal/Bhutan, Electricity)

Worked example

⚠️ Common exam mistakes