Notification No. 07/2017 - Integrated Tax (Rate) Explained

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Notification No. 07/2017 - Integrated Tax (Rate): Exemption from IGST supplies by CSD to Unit Run Canteens and supplies by CSD / Unit Run Canteens to authorized customers under section 6 (1).

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

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, the inward supplies of goods, the description of which is specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2), from the whole of the integrated tax leviable thereon under section 5 of the Integrated Good and Services Tax Act, 2017 (13 of 2017), namely:-

TABLE

S. No.	Tariff item, sub-heading, heading or Chapter	Description of supply of Goods
(1)	(2)	(3)
1.	Any chapter	The supply of goods by the CSD to the Unit Run Canteens
2.	Any chapter	The supply of goods by the CSD to the authorized customers
3.	Any chapter	The supply of goods by the Unit Run Canteens to the authorized customers

Explanation. –

In this notification, “tariff item”, “sub-heading” “heading” and “Chapter” shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.

2. This notification shall come into force with effect from the 1^st day of July 2017.

(Mohit Tewari)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 07/2017 — Integrated Tax (Rate)

Q1: What is Notification 07/2017 IGST?

Answer: It provides GST exemption for CSD supplies.
It covers specific transactions within CSD and URC system.

Q2: Is GST applicable on CSD supplies?

Answer: Depends on stage.
Some supplies are exempt, others are taxable.

Q3: Who are authorized customers?

Answer: Defence personnel and eligible beneficiaries.
Defined under CSD rules.

Q4: Does exemption apply to services?

Answer: No.
Only goods are covered.

Q5: Is supply to CSD exempt?

Answer: No.
Supply to CSD is generally taxable.

Q6: Is supply by CSD exempt?

Answer: Yes.
To URC and authorized customers.

Q7: What is Unit Run Canteen?

Answer: Defence-operated canteen.
Supplies goods to personnel.

Q8: Is ITC available?

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

Q9: What is biggest confusion?

Answer: Supply stage misunderstanding.
Not all transactions are exempt.

Q10: Is this still applicable?

Answer: Yes.
Notification is active.

Q11: What happens if wrongly exempted?

Answer: Tax demand arises.
Penalty may apply.

Q12: Do suppliers need special registration?

Answer: No.
Normal GST registration applies.

Q13: Is documentation required?

Answer: Yes.
To prove exemption eligibility.

Q14: Does this reduce cost for defence personnel?

Answer: Yes.
Exemption lowers final price.

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