Negative list

1. -Ve List
By Govt./LA By RBI By FDM
To
Agriculture
Trading of
goods
Manf.
Except
alcohol
Space Ads

2. -Ve List
Toll Chgs. Betting,
gambling,
Lottery
Transmission
distribution
of Electricity
Residential
Dwelling Deposits
Loans
Foreign
currency
dealers
Transport
of
Passengers
Transport
of Goods
Deceased

3. 1. By Govt./LA to the extent
not covered elsewhere
Service by
Postal Dept.
Speed Post
Agency
LIC Rural
Express Cargo
Pay ST
Others Like
MO,PO, Pension
Pymt. Post card,
Book post, Reg.
post, inland letter
etc.
Covered in
–ve list
Service in relation
to Aircraft/vessel
inside /outside port
area
Pay ST
Transportation of
Goods and
Passengers
Pay ST
Any service
{not (i) to (iii)}
to business
entity
Pay ST
Others
Covered in
-ve List

4. Municipal Functions (Article 243W) by G/LA/GA
Assist in MF/repair & maintenance of Vessels to G/LA/GA
Import of Service by G/LA/GA for other than Commerce,
industry, any other business/profession
Ref. Works Contract services
PY t/o of BE ≤10L (NA to i to iii)
Service Value ≤ 5000 in a FY (NA to i to iii)
Allocation of Natural Resources to farmers
Allocation of Natural resources to others before 1/4/16
Rule 7 (RCM) of POT rules, 2011
Value of Service includes interest in deferred payment
option in case of assignment of natural resources
Taxes are not liable to ST (Circular)
Panchayat entrusted functions (Article 243G) by G/LA/GA
Fines and Liquidated damages to tolerate non-performance
Grant of passport/visa/driving license/birth or death cert.
MOT charges by Govt.
Radio frequency spectrum during FY 2015-16
Registration/testing/calibration/safety check/cert. by law
Service provided by
Govt./Local Authority
Renting of immovable property NO
RCM
Payable by Govt.
(i) (ii) (iii) of –ve list (a) NO
RCM
Payable by Govt.
Others to Business entity RCM Payable by BE

5. 2. Service by RBI
•Service to RBI is taxable
•MEN : Specialized Financial
Services to RBI from outside India
is course of management of
Foreign Exchange Reserves is
EXEMPTED
3. Service by Foreign Diplomatic
Mission
•Service by FDM located in India
are covered in –ve list

6. Renting of agro machinery / vacant land (with /without structure)
Supply of Farm Labour
Agriculture production operations (Cultivation, Harvesting,
protection, threshing, testing etc.)
Process at farm (do not alter essential Character) to make it
marketable in primary market
Loading, unloading, package, storage, Warehousing of
produce
Service by APMC or Commission agent in sale/purchase
Agriculture Extension Services (R&D, Training farmers)
-
Job work of intermediary process in relation to agriculture
is exempt (eg. Shelling of Paddy)
L/U/P/S/W of rice, cotton (ginned/baled) is exempt
Pre-conditioning/cooling, ripening, waxing, retail packing
or labelling of Fruits and Vegetables
Cold Chain Knowledge dissemination by NCCD
-
4. Service related to
agriculture/its produce
(Cultivation of plants + rearing of all
life form of animals (Except horses
i.e. Stud Farm)Mega Exemption Notification :

7. 5. TRADING OF GOODS
• Commodity Futures and Forward contracts are not liable to ST
• Auxiliary services related to Commodity Futures/Forward contracts are
liable to ST
• Service by Commission/Clearing/Forwarding Agents are liable to ST

8. 6. PROCESS AMOUNTING TO MANUFACTURE EXCEPT
ALCOHOLIC LIQUOR FOR HUMAN CONSUMPTION (JOB WORK
PROCESS)
• MEN : Carrying intermediate job work relating to –
• Agriculture/Printing/Textile process
• Cut & polished diamonds/gem stones
• Plain and studded gold/other precious Metals
• Any good on which appropriate duty(not nil/fully exempt) is payable by PM
• Electro/zinc plating, Anodizing, heating, powder coating, painting (Spray/ auto black) during
manufacture of Cycle parts and Sewing machine is exempt up to an aggregate value of taxable
service of specified process of 150 Lacs in the FY (In the preceding FY aggregate value of such
process had not exceeded 150 Lacs)

9. 7. SELLING OF SPACE FOR
ADVERTISEMENTS IN PRINT MEDIA
• Print Media means BOOKS and NEWS PAPERS
• Books do not include Business directories or yellow pages or trade
catalogues which are primarily meant for COMMERCIAL PURPOSE
• But service of designing or other auxiliary services by advertising agencies
for preparation of advertisements are liable to ST

10. 8. ACCESS TO ROAD/BRIDGE ON PAYMENT
OF TOLL CHARGES
• Only Toll charges are covered in negative list
• Collection charges paid for collection of Toll charges is liable to ST

11. 9. BETTING, LOTTERY, GAMBLING
• Auxiliary services like marketing/promotion/organizing etc. above events
are liable to ST
• Refer : Composition Scheme for DISTRIBUTOR or SELLING Agent
engaged in promotion/marketing of Lottery {Rule 6(7C) of ST rules,1994}

12. 10. TRANSMISSION OR DISTRIBUTION OF
ELECTRICITY BY AN ELECTRICITY
TRANSMISSION OR DISTRIBUTION UTILITY
• Electricity meters installed in consumer premises and hire charges are
collected – it is exempt from ST (Circular).
• Distribution of electricity by developer or housing agent is liable to ST.
• Installation of gensets etc. by Private Contractor is liable to ST

13. 11. RENTING OF RESIDENTIAL DWELLING
FOR USE AS RESIDENCE
• Residential Dwelling for Residential use is covered here
• Residential Dwelling for Commercial use is liable to ST
• Commercial Dwelling for Residential use is liable to ST
• Commercial Dwelling for Commercial use is liable to ST

14. 12. FINANCIAL SERVICES
Banks
•Deposit/Loans/Repo,
reverse repo is MTM,
so it is not at all a
service.
•Interest/bill discounting
charges on above is
covered here
•Commission, Fees,
ledger folio charges
are liable to ST
Mutual Fund
•Subscription fee in MF
is MTM, so at all a
service
•Exit/Entry Load,
Admin/other service
charges are liable to ST
Chits
•In simple chit no
commission is charged
(i.e. MTM), so it is not
at all a service
•In case of business chit
where separate
commission is charged
would be liable to ST
Foreign Exchange
Service
•Bank to bank/dealer or
Dealer to bank/dealer is
covered in negative list
•Bank/dealer to
customer is taxable
•Ref: Valuation rules &
Composition Scheme
Depository and EAIS services are liable to
ST

15. 13. TRANSPORTATION OF PASSENGERS
Transportation of Passengers
Air
Out to
India
No ST
POPS
is in
NTT
India
to Out
ST
Within
India
ST
Rail
AC
ST
Non
AC
-ve
list
Road
Stage
Carriage
AC
ST
Non
AC
Exempt
Cabs auto
rikshaws
-ve
list
Other
Contract
Carriage
AC
ST
Non
AC
Tourism
ST
Other
Exempt
Radio
Taxi
ST
Water
O-I
No ST
POPS
is in
NTT
I-O
ST
W I
Inland
-ve
list
Other
Tour
ST
other
Exempt
Economy-40%
Business-60%
CENVAT =Only Input Service
No CENVAT credit is available
But in case of Contract Carriage is motor cab then
input motor cab service is allowed as Cenvat Cr.
30%
40%
40%
40%
40%
100%
100%
Full CENVAT Credit is available
Note: Transportation by Rope Way, cable car
or aerial tram ways are taxable w.e.f 1/4/16
Note: Transportation by Mono Rail, Metro
Rail or Tram way are covered in –ve list

16. 14. TRANSPORTATION OF GOODS
Transportation of Goods
Air
I-O
No ST
POPS
is in
NTT
O-I
Exempt
W I
ST
Rail
Entry
20
items
Exempt
others
By
Indian
railway
ST
others
ST
Road
GTA
Entry
21
items
Exempt
House
hold
goods
ST
Other
ST
courier
ST
Other
-ve
list
Water
I-O
No ST
POPS
is in
NTT
O-I
ST
W I
Inland
-ve
list
Other
Entry
20
items
Exempt
other
ST40%
100%
30%
40%
30%
100% 30%
30%
Cenvat =Only Input Service
CENVAT =Only Input Service
No CENVAT Credit

17. • Relief material for victims of disasters,
calamities, accidents or mishap
• Defence/military equipment
• News papers or Magazines
• Railway equipment/material
• Agricultural Produce
• Foodstuffs limited to Milk, salt, food grains
includes Flours, Pulses, Rice
• Chemical fertilizer, organic manure, oilcakes
• Cotton (ginned/baled)
ITEMS IN ENTRY NO 21
• Relief material for victims of disasters,
calamities, accidents or mishap
• Defence/military equipment
• News papers or Magazines
• Railway equipment/material
• Agricultural Produce
• Foodstuffs limited to Milk, salt, food grains
includes Flours, Pulses, Rice
• Chemical fertilizer, organic manure, oilcakes
• Cotton (ginned/baled)
• Gross amt. in single carriage ≤ 1500
• Gross amt. for single consignee ≤ 750
ITEMS IN ENTRY NO 20

18. 15. FUNERAL, BURIAL, CREMATORIUM OR MORTUARY
SERVICES INCLUDING TRANSPORTATION OF THE
DECEASED IS COVERED IN NEGATIVE LIST