Important Keyword: FAO GST exemption India, UTGST exempt goods, GST on FAO projects, agriculture GST relief, Notification 19/2019 GST, government project GST exemption,
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[F.No.354/131/2019-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, the 30th September, 2019
Notification No. 19/2019 - Union Territory 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 8 of the Union Territory Goods and Services Tax Act, 2017 (14 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 Organisation of the United Nations (FAO) for execution of projects listed below in the Annexure, from whole of the Union territory tax leviable thereon under section 7 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 1st day of October, 2019.
(Ruchi Bisht)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 19/2019 - Union Territory Tax (Rate)
Q1: What is Notification No. 19/2019 - Union Territory Tax (Rate)?
Answer:
It grants full GST exemption on goods supplied to FAO for certain approved agriculture and environment projects.
Q2: From when is the exemption applicable?
Answer:
From 1 October 2019. notfctn-19-2019-utgst-rate-engl…
Q3: Who is eligible for this exemption?
Answer:
Suppliers who sell goods directly to FAO for listed projects.
Q4: Does this apply to services also?
Answer:
No ❌
Only goods are covered, not services.
Q5: Is the exemption automatic?
Answer:
No. Certification is mandatory.
You must get approval from:
👉 Deputy Secretary or higher officer in Ministry of Agriculture.
Q6: What certification is required?
Answer:
Certificate must mention:
quantity of goods
description of goods
purpose of use in project
Without certificate → GST applicable.
Q7: Can normal traders use this exemption?
Answer:
Only if supplying directly to FAO project.
Regular sales not covered.
Q8: Do suppliers still need GST registration?
Answer:
Yes 👍
Even exempt suppliers may require registration for compliance and invoicing.
Register here 👉 https://finodha.in/online-gst-registration/
Q9: Should exempt sales be shown in GST returns?
Answer:
Yes.
Report under exempt supplies in GSTR-1 and GSTR-3B.
File easily 👉 https://finodha.in/gst-return-filing/
Q10: Can input tax credit (ITC) be claimed on such exempt supplies?
Answer:
No ❌
ITC cannot be claimed for exempt outward supplies.
Q11: What if GST is mistakenly charged?
Answer:
You must:
issue credit note
refund tax
amend return
Better consult experts 👉 https://finodha.in/gst-compliance/
Q12: Which law section allows this exemption?
Answer:
Issued under:
Section 8(1) of UTGST Act
Section 7 (tax levy reference)
Q13: What documents should be maintained?
Answer:
Keep:
✔ FAO purchase order
✔ Certification letter
✔ Tax invoice
✔ Delivery challan
✔ GST return copy
Q14: Why is government giving this benefit?
Answer:
To:
🌾 support farmers
🌱 protect environment
🍽 improve nutrition
🌍 encourage global partnerships
Q15: Can MSMEs benefit from supplying to FAO?
Answer:
Yes 👍
MSMEs can supply goods GST-free, improving profit margins.
Register MSME here 👉 https://finodha.in/online-udyam-udyog-aadhar-msme-registration/
🏁 Conclusion
The Notification No. 19/2019 - Union Territory Tax (Rate) is a big relief for suppliers working with FAO agriculture and sustainability projects. It reduces project cost and supports national development.
Download PDF: Notification No. 19/2019 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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