Clarification on Ownership for Tax Exemption

Explanation Inserted: Under sub-section (3) of section 11, a clarification is added to Notification No. 12/2017-Central Tax (Rate).

Scope of Exemption: The inserted Explanation specifies that the Central Government, State Government, or Union territory must have 50% or more ownership in the entity.

Ownership Criteria: Ownership can be direct or through a wholly-owned entity by the Central Government, State Government, or Union territory. Effective Date: Clarification applicable from the date of notification.

Issuing Authority: Signed by Mohit Tewari, Under Secretary to the Government of India. (Dr. Sree Parvathy S.L.) Under Secretary to the Government of India