Notification No. 18/2019 - Integrated Tax (Rate) Explained

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Notification No. 18/2019 - Integrated Tax (Rate): Seeks to exempt supply of goods for specified projects under FAO.

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, all the goods supplied to the Food and Agricultural Organization of the United Nations (FAO) for execution of projects listed below in the Annexure, from whole of the Integrated tax leviable thereon under section 5 of the said Act, subject to the condition that an officer not below the rank of Deputy Secretary to the Government of India in the Ministry of Ministry of Agriculture and Farmers Welfare certifies, namely:-

the quantity and description of the goods; and

that the said goods are intended for the purpose of use in execution of said projects.

ANNEXURE

Strengthening Capacities for Nutrition-sensitive Agriculture and Food systems,

Green Ag: Transforming Indian Agriculture for Global Environment benefits and the conservation of Critical Biodiversity and Forest landscape.

2. This notification shall come into force on the 1^st day of October, 2019.

(Ruchi Bisht)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 18/2019 - Integrated Tax (Rate)

Q1: What is Notification No. 18/2019 – Integrated Tax (Rate)?

Answer:
It is a GST notification that fully exempts IGST on goods supplied to the Food and Agriculture Organization (FAO) for executing specific agriculture and biodiversity projects in India under Section 6(1) of the IGST Act.

Q2: Who can claim IGST exemption under this notification?

Answer:
Only suppliers of goods to FAO for the listed projects are eligible, subject to certification from the Ministry of Agriculture & Farmers Welfare.

Q3: Are services also exempt under this notification?

Answer:
No. The exemption applies only to goods, not to services.

Q4: From which date is this exemption applicable?

Answer:
The exemption is effective from 1st October 2019.

Q5: Is FAO required to be registered under GST?

Answer:
FAO operates as a UN organization, and the exemption applies irrespective of GST registration, provided project certification is obtained.

Q6: What certification is mandatory to claim exemption?

Answer:
A certificate from an officer not below the rank of Deputy Secretary in the Ministry of Agriculture & Farmers Welfare, confirming:
Quantity and description of goods
Intended use for FAO-approved projects

Q7: Can domestic suppliers also avail this IGST exemption?

Answer:
Yes. Both imported and inter-State supplied goods qualify, as IGST applies to both.

Q8: How should suppliers report such exempt supplies in GST returns?

Answer:
These supplies must be shown as exempt supplies in GSTR-1 and GSTR-3B.
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Q9: Is Input Tax Credit (ITC) available on such exempt supplies?

Answer:
No. As per Section 17(2) of CGST Act, ITC is not available on exempt supplies.

Q10: What happens if certification is not obtained?

Answer:
Without certification, the supply becomes taxable, and IGST with interest and penalty may apply.

Q11: Does this exemption override other IGST notifications?

Answer:
Yes, but only for the specified FAO projects listed in the Annexure.

Q12: Can MSME suppliers benefit from this notification?

Answer:
Yes. MSMEs supplying eligible goods can benefit, provided compliance is met.
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Q13: Is this exemption still valid in 2025?

Answer:
Yes, unless specifically withdrawn or amended by a later notification.

Q14: Does this notification apply to State GST (SGST)?

Answer:
No. It applies only to IGST. Separate CGST/SGST notifications may apply for intra-state supplies.

Q15: Who should businesses consult for compliance?

Answer:
GST exemptions involve strict documentation.
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