GST Council Clarifies Applicability of GST on Accommodation Services Provided by Air Force Mess and Incentives Paid by MeitY to Acquiring Banks

The GST Council has clarified the applicability of GST on certain services. Specifically, they have clarified whether GST is payable on accommodation services provided by Air Force Mess to its personnel and whether GST is applicable on incentives paid by the Ministry of Electronics and Information Technology (MeitY) to acquiring banks under the Incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions. The Council has stated that accommodation services provided by Air Force Mess and other similar messes to their personnel or any person other than a business entity are exempt from GST. Additionally, the incentives paid by MeitY to acquiring banks under the Incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions are not taxable as they are considered as a subsidy. [Circular No. 190/02/2023- GST]