Claim your TDS Refund before it EXPIRE in

Day(s)

Hour(s)

Minute(s)

Second(s)

ITR Filing Starts Only

GST Return Filing Starts Only

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 28/2018 – Central Tax (Rate) Explained

by Shakshi Bharti | Apr 2, 2024 | GST, 2018 Notifications, Central Tax 2018 Notifications, Notifications | 0 comments

Call @ +91-8512-022-044

Important Keyword: Notification 28/2018 GST, GST exemption services notification, Notification 12/2017 amendment, GTA services GST exemption, PMJDY GST exemption, Rehabilitation services GST, Section 11 CGST exemption, GST service exemption India, Notification 28/2018 guide, GST exemption for government services (Rate),

Words: 1283 Read time: 7 minutes.

[F. No.354/428/2018 -TRU]
Government of India
Ministry of Finance
(Department of Revenue)

New Delhi, the 31^st December, 2018

Notification No. 28/2018 - Central Tax (Rate): Seeks to amend notification No. 12/2017- Central Tax (Rate) so as to exempt certain services as recommended by Goods and Services Tax Council in its 31st meeting held on 22.12.2018.

GST: [TO BE PUBLISHED IN THE GAZZETE 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 Central Goods and Services Tax 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 makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.12/2017- Central Tax (Rate), dated the 28^thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28^thJune, 2017, namely:-

In the said notification, -

(i)in the Table, -

after serial number 21A and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

(1)	(2)	(3)	(4)	(5)
“21B	Heading 9965 or Heading 9967	Services provided by a goods transport agency, by way of transport of goods in a goods carriage, to, - a Department or Establishment of the Central Government or State Government or Union territory; or local authority; or Governmental agencies, which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under Section 51 and not for making a taxable supply of goods or services.	Nil	Nil”;

after serial number 27 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

(1)	(2)	(3)	(4)	(5)
“27A	Heading 9971	Services provided by a banking company to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY).	Nil	Nil”;

against serial number 34A, in the entry in column (3), after the letters and words “PSUs from the”, the words “banking companies and” shall be inserted;

against serial number 66, for the entry in column (2), the following entry shall be substituted namely: -
“Heading 9992 or Heading 9963”;
serial number 67 and the entries relating thereto, shall be omitted;

after serial number 74 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

(1)	(2)	(3)	(4)	(5)
“74A	Heading 9993	Services provided by rehabilitation professionals recognized under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA of the Income- tax Act, 1961 (43 of 1961).	Nil	Nil”;

(ii) in paragraph 2, after clause (za), the following clause shall be inserted, namely: -
“(zaa) “financial institution” has the same meaning as assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934).”.

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

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

Note: -The principal notification No. 12/2017 - Central Tax (Rate), dated the 28^thJune, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 691 (E), dated the 28^th June, 2017 and was last amended by notification No. 23/2018 - Central Tax (Rate), dated the 20^th September, 2018 vide number G.S.R. 906(E), dated the 20^th September, 2018.

📚 Frequently Asked Questions (FAQs): Notification No. 28/2018 – Central Tax (Rate)

Q1: What is Notification No. 28/2018 – Central Tax (Rate)?

Answer:
It is a GST notification issued on 31 December 2018 to grant exemptions to certain services by amending Notification 12/2017.

Q2: When did this notification become effective?

Answer:
It came into effect from 1 January 2019. 28

Q3: Under which section was this notification issued?

Answer:
It was issued under Section 11(1) of the CGST Act, 2017, which allows service exemptions in public interest.

Q4: Which main services were exempted?

Answer:
Key exemptions include:
GTA services to certain government bodies
Banking services to PMJDY account holders
Rehabilitation services by recognised professionals

Q5: Are all GTA services now exempt?

Answer:
No.
Only GTA services provided to government entities registered only for TDS under Section 51 are exempt. 28

Q6: What is a PMJDY account?

Answer:
It is a Basic Savings Bank Deposit account opened under the Pradhan Mantri Jan Dhan Yojana, aimed at financial inclusion.

Q7: Do banks charge GST on Jan Dhan account services?

Answer:
No.
Basic banking services to PMJDY account holders are GST exempt under this notification. 28

Q8: Who qualifies as a rehabilitation professional?

Answer:
A person recognised under the Rehabilitation Council of India Act, 1992.

Q9: Are therapy services at private clinics exempt?

Answer:
Only if:
Provided by recognised professionals
At specified establishments like medical institutions or approved entities 28

Q10: Does this notification affect small businesses?

Answer:
Yes.
Transporters, therapists, and banks must correctly identify exempt services.
You can ensure compliance through
👉 Finodha GST Compliance: https://finodha.in/gst-compliance/

Q11: How should exempt services be shown in GST returns?

Answer:
They must be reported under exempt or nil-rated supplies in GST returns.

Q12: Can ITC be claimed on inputs used for exempt services?

Answer:
Generally, ITC is not allowed on inputs used exclusively for exempt supplies as per Section 17(2) of CGST Act.

Q13: Why was this notification issued?

Answer:
To:
Promote financial inclusion
Reduce GST burden on public services
Support social welfare sectors

Q14: Is this notification still relevant today?

Answer:
Yes.
The exemptions remain applicable unless modified by later GST notifications.

Q15: What if a business wrongly charges GST on an exempt service?

Answer:
It may lead to:
Refund issues
Compliance complications
Customer disputes
Avoid such issues with
👉 Finodha GST Compliance: https://finodha.in/gst-compliance/

Conclusion

Notification No. 28/2018 – Central Tax (Rate) introduced important GST exemptions for government transport services, PMJDY banking services, and rehabilitation professionals. These changes aim to support public welfare, financial inclusion, and essential services.