GST exemption denied for MeeSeva service charges collected beyond statutory government fees and outside notification entries.

Charges collected by MeeSeva for services to non-business entities, business entities and Government entities were held not to fall within the exemptions in Notification No. 12/2017-Central Tax (Rate). The AAR found that the services were delivered through electronic service delivery centres under the Telangana rules, but the applicant collected amounts over and above the statutory charges payable to the concerned departments. The relevant exemption entries apply only to services actually provided by the Central Government, State Government, Union territory or local authority, and the facts did not show that the applicant's receipts were confined to such government charges. Exemption for low-value services or services to smaller business entities was also not available; the receipts were liable to GST.

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Issues: Whether the charges collected by MeeSeva for services rendered to non-business entities, business entities, and Government entities were exempt under S.No. 6(d), S.No. 7, or S.No. 9 of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017.

Analysis: The services were rendered through electronic service delivery centres functioning under the Telangana Information Technology (Electronic Service Delivery) Rules, 2011, and the applicant collected amounts over and above the statutory charges payable to the concerned departments. The relevant exemption entries apply only to services actually provided by the Central Government, State Government, Union territory, or local authority within the scope of the notification. The charges collected by the applicant were not confined to statutory government charges and also related to services for entities other than Government departments. The exemption for low-value services and for services to smaller business entities was therefore not attracted on the facts found.

Conclusion: The applicant was not eligible to claim exemption under the cited entries of Notification No. 12/2017-Central Tax (Rate), and the charges collected were liable to tax under the GST regime.

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