Notification No. 26/2017 - Integrated Tax (Rate) Explained

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Notification No. 26/2017 - Integrated Tax (Rate): Exempt certain supplies to NPCIL.

GST: [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R (E).- In exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council,

hereby exempts inter-state supply of heavy water and nuclear fuels falling in Chapter 28 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) by the Department of Atomic Energy to the Nuclear Power Corporation of India Ltd from the whole of the integrated tax leviable thereon under section 5 of the Integrated Good and Services Tax Act, 2017 (13 of 2017).

(Ruchi Bisht)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 26/2017 — Integrated Tax (Rate)

Q1: Is all supply to NPCIL exempt under GST?

Answer: No, not all supplies are exempt.
Only specific goods like heavy water and nuclear fuels supplied by the Department of Atomic Energy qualify for exemption.

Q2: Can private companies claim this exemption?

Answer: No, they cannot.
The exemption is limited to supplies made by a specific government department.

Q3: What is heavy water in GST context?

Answer: It is a nuclear material.
Used in nuclear reactors, classified under Chapter 28.

Q4: Does this apply to intra-state supply?

Answer: No, only inter-state supply.
IGST exemption applies only when supply crosses state boundaries.

Q5: What happens if conditions are not met?

Answer: GST becomes applicable.
Plus, incorrect exemption may lead to penalties.

Q6: Is this exemption still valid?

Answer: Yes, unless amended.
Always check latest updates.

Q7: What is NPCIL?

Answer: A government PSU.
It operates nuclear power plants in India.

Q8: Does this affect contractors?

Answer: No direct benefit.
Contractors supplying to NPCIL still pay GST.

Q9: Why is exemption given?

Answer: For national interest.
Supports nuclear energy sector.

Q10: Is input tax credit available?

Answer: Depends on transaction structure.
Exempt supplies may restrict ITC.

Q11: Can exemption be claimed partially?

Answer: No.
Either conditions are met or not.

Q12: How to verify applicability?

Answer: Check all conditions carefully.
Documentation is key.

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