Notification No. 19/2019 - Central Tax (Rate) Explained

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Notification No. 19/2019 - Central Tax (Rate): Seeks to exempt supply of goods for specified projects under FAO.

[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 11 of the CGST Act, 2017 (12 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 Central Tax leviable thereon under section 9 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.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 19/2019 - Central Tax (Rate)

Q1: What is Notification No. 19/2019 – Central Tax (Rate)?

Answer:
It grants full CGST exemption on goods supplied to the Food and Agriculture Organization of the United Nations (FAO) for specified agriculture and nutrition projects, effective from 1 October 2019.

Q2: From which date is this GST exemption applicable?

Answer:
The exemption is applicable from 1 October 2019.

Q3: Which organisation is eligible to receive exempt supplies?

Answer:
Only the Food and Agriculture Organization of the United Nations (FAO) is covered under this notification.

Q4: Are all supplies to FAO exempt from GST?

Answer:
No ❌. Only goods supplied for execution of the specific projects listed in the Annexure are exempt.

Q5: What types of goods are covered under this exemption?

Answer:
The notification exempts all goods, provided they are:
Supplied to FAO, and
Used exclusively for the notified projects, and
Certified by the competent authority.

Q6: Is supply of services to FAO also exempt?

Answer:
No ❌. This notification covers only supply of goods, not services.

Q7: What certification is required to claim GST exemption?

Answer:
A certificate from a Deputy Secretary (or higher rank) in the Ministry of Agriculture & Farmers Welfare, certifying:
Quantity and description of goods
Intended use in FAO projects

Q8: Can you explain with a real-life example?

Answer:
📌 Example:
An Indian manufacturer supplies agricultural equipment to FAO for the Green Ag project. With proper certification from the Ministry of Agriculture, no CGST is charged on the invoice.

Q9: Is Input Tax Credit (ITC) available on such exempt supplies?

Answer:
No ❌. Since the outward supply is exempt, ITC on inputs used exclusively for such supplies is not available under Section 17(2) of the CGST Act.

Q10: Should exempt FAO supplies be reported in GST returns?

Answer:
Yes ✅. These must be disclosed as exempt supplies in:
GSTR-1, and
GSTR-3B – Table 3.1(c)
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Q11: Is GST registration mandatory for suppliers to FAO?

Answer:
Yes, if the supplier:
Is otherwise liable for registration, or
Has taxable supplies in addition to exempt FAO supplies.
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Q12: Does this exemption apply across India?

Answer:
Yes ✅. Corresponding SGST notifications ensure nationwide applicability.

Q13: What happens if goods are diverted for non-project use?

Answer:
GST exemption may be withdrawn, and tax, interest, and penalties can be demanded.

Q14: Who should carefully review Notification No. 19/2019?

Answer:
Suppliers to FAO
Agri-equipment manufacturers
NGOs & development contractors
GST professionals advising international organisations

Q15: How can Finodha help in FAO-related GST compliance?

Answer:
Finodha assists with:
Eligibility assessment
Documentation & certification checks
GST return reporting
Audit-ready compliance
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