GST on Basic mail services provided by Department of Post

[Hital Vyas]

Basic mail services known as postal services such as post card, book post, registered post, media post, business post etc provided exclusively by Department of Post were exempt and were not liable for RCM for the services utilised by Registered Business Entities. The Post Office Services like Speed Post, Express Parcel, Life Insurance, Agency Service were liable for GST under Forward charge. But in the Press release of 47 council meeting they stated that:

All taxable service of Department of Posts would be subject to forward charge. Hitherto certain taxable services of Department of post were taxed on reverse charge basis.

Please can clarify what does the 'Hitherto certain taxable services of Department of post were taxed on reverse charge basis' mean and which services were covered and which were exempt.

[DR.MARIAPPAN GOVINDARAJAN]

The same shall be notified by the Government in consultation with GST Council.

AI Summary

GST treatment of postal services: shift to forward charge for all taxable Department of Posts services, notification pending. Basic mail services provided by the Department of Posts were exempt and not liable for reverse charge, whereas services such as Speed Post, Express Parcel, life insurance and agency services were taxable under forward charge. A GST Council press release states that all taxable services of the Department of Posts will be subject to forward charge, and the Government will notify the specific services and changes after consultation with the GST Council.