:

GST exemptions can be difficult to revise because several exemption entries contain specific monetary limits, age criteria, duration requirements, percentage conditions and other numerical thresholds.

The biggest problem is not understanding these provisions—it is remembering the numbers at the right time in the examination.

This guide is designed as a rapid-revision cheat sheet for CA Final and CA Inter students, covering the important limits under GST exemptions in one place.

Revision Goal: Minimum time → Maximum recall.

All Important Limits in GST Exemptions :

1. Retrospective Exemption – Maximum 1 Year

Where an exemption is granted with retrospective effect, the retrospective benefit can generally extend up to a maximum period of 1 year, subject to the applicable notification/provision.

📌 Remember:
Retrospective effect → Maximum 1 year

2. Charitable Trust – Rural Area & Senior Citizens

Certain charitable activities relating to advancement of educational programmes/skill development have specific conditions.

One important numerical condition relates to services provided in a rural area to persons aged 65 years or more.

📌 Remember the numbers:

Rural Area + Age 65 years or above

This combination is important for examination-based questions.

3. Renting of Premises – Important GST Limits

All Important Limits in GST Exemptions:

Renting-related exemptions contain some highly testable monetary limits.

Religious Place – Rooms

If rooms are rented in a religious place such as a dharmashala, the exemption depends upon the amount charged.

📌 Memory Trick:
Religious Room = ₹1,000/day

Community Hall

For renting of a community hall, the relevant threshold is:

₹10,000 or more per day → Taxable

📌 Remember:
Community Hall = ₹10,000/day

Shop

For renting of a shop, the threshold is:

₹10,000 or more per month → Taxable

📌 Remember:
Shop = ₹10,000/month

4. Old Age Home Services

Services provided by a charitable/religious trust or Government to an old age home have an important monetary threshold.

The exemption applies to services provided to residents aged:

60 years or above

And the consideration should be up to:

₹25,000 per month per member

Therefore:

• ₹25,000/month/member → Exempt
• Above ₹25,000/month/member → Taxable

📌 Memory Trick:
Old Age Home = 60+ + ₹25,000/month

5. Accommodation – PGs & Guest Houses

All Important Limits in GST Exemptions:

For accommodation services such as PGs/guest houses, remember the following combination:

₹20,000 per month per person + Minimum 90 days

Both conditions are important.

The exemption is available where the consideration does not exceed:

₹20,000 per month per person

and the accommodation is provided for:

Minimum 90 days

📌 Remember:

₹20,000 + 90 Days

Don’t confuse per person per month with per room.

6. Healthcare Services – Room Rent

Healthcare services are generally covered by exemption, but room-rent provisions require special attention.

Where hospital accommodation is involved, room charges exceeding:

₹5,000 per day

can result in the room-rent component becoming taxable, subject to the applicable provisions.

However, certain critical-care units are specifically excluded from this limitation.

Four important exceptions:

• ICU – Intensive Care Unit
• CCU – Critical Care Unit
• ICCU – Intensive Cardiac Care Unit
• NICU – Neonatal Intensive Care Unit

For these units, the room-rent amount can be fully exempt, irrespective of the amount charged, subject to the applicable exemption conditions.

📌 Memory Trick:

Hospital Room = ₹5,000/day

But:

ICU + CCU + ICCU + NICU → No ₹5,000 limit

7. Tour Operator Services – Entry 52A

All Important Limits in GST Exemptions:

Another important numerical concept relates to tour operator services.

Where the relevant conditions are satisfied, exemption is linked to:

Number of days visited outside India

and

50% of total consideration

The exemption is the lower of the two.

📌 Remember:

Exemption = Lower of:

• Number of days visited outside India
• 50% of total consideration

There is also an important rule for counting the stay in India:

• 12 hours or less → Half day
• More than 12 hours → Full day

This is a classic number-based MCQ area.

8. Banking Services – Debit/Credit Card Transactions

For certain banking and financial services involving debit/credit card transactions:

₹2,000

is the key threshold.

Transactions up to ₹2,000 may qualify for the relevant exemption from GST on transaction charges, subject to conditions.

⚠️ Important: This exemption does not automatically extend to payment gateway charges.

So, charges of payment gateways such as online payment intermediaries may remain taxable even where the underlying transaction is ₹2,000 or less, depending on the applicable provision.

📌 Remember:

Card Transaction → ₹2,000

9. Hiring of Motor Vehicle – Seating Capacity

All Important Limits in GST Exemptions:

Where a motor vehicle is hired by a State Transport Undertaking, the seating capacity becomes important.

Seating capacity: More than 12

The relevant exemption is available where the motor vehicle has:

More than 12 passengers’ seating capacity

📌 Memory Trick:

STU + Motor Vehicle + >12 Seats

If the question is silent on the seating capacity, remember the examination assumption applicable under the relevant study material/provision.

10. Educational Programmes – Duration

All Important Limits in GST Exemptions:

Educational services have another easy-to-forget numerical condition.

Where the relevant educational programme has a duration of:

1 year or more

→ Exempt

Where the programme is:

Less than 1 year

→ Taxable, subject to the applicable exemption conditions.

📌 Remember:

Education = 1 Year

Exactly 1 year qualifies for the relevant exemption condition.

11. Department of Posts – Envelope Weight

All Important Limits in GST Exemptions:

Certain services provided by the Department of Posts are taxable, but specified postal services are exempt.

One numerical limit worth remembering is:

Envelope weighing less than 10 grams

The specified exemption covers postal items such as:

• Ordinary post
• Book post
• Inland letter
• Envelope weighing less than 10 grams

📌 Memory Trick:

Envelope = <10 grams

If the envelope weighs 10 grams or more, the relevant exemption is not available under this condition.

12. Small Services Provided by Government

All Important Limits in GST Exemptions:

Certain small-value services provided by the Government have a threshold of:

₹5,000

Where the applicable consideration is less than ₹5,000, the relevant exemption can apply.

However, certain specified services are excluded and remain taxable irrespective of the threshold.

📌 Remember:

Small Government Service = ₹5,000

13. Government Contract – Goods Component

All Important Limits in GST Exemptions:

For certain composite supplies involving goods and services supplied to the Government, the percentage of the goods component becomes important.

Goods component ≤ 25%

If the goods component does not exceed:

25% of the total value

the relevant exemption can apply, subject to conditions.

If the goods component exceeds:

25%

the supply becomes fully taxable under the relevant provision.

📌 Memory Trick:

Government + Goods & Services = 25%

14. Government-Funded Training Programme – 75%

All Important Limits in GST Exemptions:

For certain training programmes, the Government funding percentage is important.

If the Government bears:

75% or more of the total expenditure

for the training programme, the relevant exemption can apply to specified services received for conducting the programme.

📌 Remember:

Government Funding = 75% or More

15. Folk & Classical Artists – ₹1.5 Lakh

All Important Limits in GST Exemptions:

Services provided by specified folk or classical artists in the fields of:

• Music
• Dance
• Theatre

have a monetary threshold.

Where consideration for the performance does not exceed:

₹1.5 lakh

the relevant exemption can apply, subject to conditions.

However, services provided as a brand ambassador are not covered by this exemption.

📌 Memory Trick:

Artist Performance = ₹1.5 Lakh

16. Entertainment & Recreational Activities – ₹500

All Important Limits in GST Exemptions:

For admission to certain specified entertainment/recreational activities, the important threshold is:

₹500 per person

Where the ticket price does not exceed ₹500 per person, the relevant exemption can apply to specified activities.

Examples include certain:

• Circus
• Dance
• Theatre
• Planetarium
• Recognised sporting events

But remember the exception!

For places such as:

• Museum
• National Park
• Wildlife Sanctuary
• Tiger Reserve

the ₹500 threshold does not apply in the same manner.

The admission can be fully exempt irrespective of the ticket amount, subject to the applicable exemption entry.

📌 Memory Trick:

Entertainment = ₹500

Museum/National Park/Wildlife Sanctuary/Tiger Reserve = No ₹500 ceiling

17. RWA Maintenance – ₹7,500

All Important Limits in GST Exemptions:

This is one of the most important GST exemption limits for examination purposes.

Services provided by a Residential Welfare Association (RWA) to its members are exempt up to:

₹7,500 per month per member

Therefore:

• ₹7,500 or less → Exempt
• More than ₹7,500 → Taxable

Important calculation point

Certain amounts such as:

• Property tax
• Electricity charges

are excluded while determining the relevant maintenance amount.

Example

Suppose monthly maintenance charged is:

₹9,000

and it includes:

• Property tax = ₹1,000
• Electricity charges = ₹1,000

Then relevant maintenance amount:

₹9,000 − ₹1,000 − ₹1,000 = ₹7,000

Therefore, the relevant amount for the ₹7,500 threshold is ₹7,000.

📌 Memory Trick:

RWA = ₹7,500/month/member

18. Unincorporated Body – ₹1,000

All Important Limits in GST Exemptions:

For specified services provided by an unincorporated body or association to its members, another small but important threshold is:

₹1,000 per person per year

Up to the prescribed limit, the relevant exemption can apply, subject to the conditions of the exemption entry.

📌 Remember:

Unincorporated Body = ₹1,000/person/year

19. Incubator – ₹50 Lakh Turnover Limit

All Important Limits in GST Exemptions:

For specified services provided by an incubator to an incubatee, the turnover threshold becomes important.

During the initial period, where the incubatee’s turnover is:

Up to ₹50 lakh

the relevant exemption can apply, subject to conditions.

But if the turnover exceeds:

₹50 lakh in any financial year

the exemption may lapse as prescribed.

📌 Memory Trick:

Incubator = ₹50 Lakh

20. R&D Services – Section 35

All Important Limits in GST Exemptions:

Research and development services have a conceptual point that can also become an examination trap.

Where funds are provided to specified educational institutions/universities covered under the relevant provisions of Section 35 of the Income-tax Act, the transaction may be treated as a donation/grant rather than consideration for a taxable supply, subject to the facts and applicable conditions.

The key point is:

Donation ≠ Consideration

If there is no consideration in return for the payment, the transaction may fall outside the scope of supply.

📌 Remember:

R&D + Eligible Institution + No Consideration = Important GST Issue

21. Life Micro-Insurance – ₹2 Lakh

All Important Limits in GST Exemptions:

For specified life micro-insurance products approved by the Insurance Regulatory and Development Authority, the maximum cover is:

₹2 lakh

This is an important numerical limit.

📌 Memory Trick:

Micro Insurance = Maximum Cover ₹2 Lakh

22. RCS – Regional Connectivity Scheme – 3 Years

Under the Regional Connectivity Scheme (RCS), another important number is:

3 Years

The exemption is available for the prescribed period from the date the airport is notified under the RCS, subject to the applicable conditions.

📌 Remember:

RCS Airport → 3 Years

One-Page GST Exemption Numbers for Quick Revision

All Important Limits in GST Exemptions:

If you have only 5 minutes before an exam, revise this table:

How to Memorise These Limits for the CA Exam

All Important Limits in GST Exemptions:

Don’t try to memorise all these numbers randomly. Group them into clusters.

 Cluster 1 – Accommodation

₹1,000 → ₹10,000 → ₹10,000 → ₹20,000 → ₹25,000

• Religious room → ₹1,000/day
• Community hall → ₹10,000/day
• Shop → ₹10,000/month
• PG/guest house → ₹20,000/month/person
• Old age home → ₹25,000/month/member

 Cluster 2 – Percentage Limits

25% → 50% → 75%

• Government goods component → 25%
• Tour operator → 50% consideration
• Government-funded training → 75%

 Cluster 3 – Special Numbers

₹500 → ₹2,000 → ₹5,000 → ₹7,500

• Entertainment → ₹500
• Card transaction → ₹2,000
• Hospital room → ₹5,000
• RWA → ₹7,500

 Cluster 4 – Bigger Limits

₹1.5 Lakh → ₹2 Lakh → ₹50 Lakh

• Folk/classical artist → ₹1.5 lakh
• Micro-insurance → ₹2 lakh
• Incubator → ₹50 lakh

Final Revision Strategy

All Important Limits in GST Exemptions:

The purpose of this type of revision is not to replace your ICAI study material. Instead, use it as a rapid-recall tool after completing your detailed study.

A highly effective approach is:

First Revision → Understand the exemption entries

↓

Second Revision → Highlight every number

↓

Third Revision → Revise only the numbers + conditions

↓

Before Exam → 5-minute numerical-limit recall

The key is to remember the number together with its condition.

For example, don’t simply memorise:

₹7,500

Instead, remember:

RWA → ₹7,500 → per month → per member

Similarly:

Hospital → ₹5,000 → room rent → per day → specified exceptions

That small difference can prevent silly mistakes in the examination.

 Bottom Line

All Important Limits in GST Exemptions:

GST exemption provisions contain numerous numerical thresholds, and CA students often lose marks not because they don’t understand the concept, but because they forget one small number or condition.

So, instead of repeatedly reading the entire chapter, create a dedicated “GST Exemption Numbers Sheet” and revise it through active recall.

Minimum time. Maximum recall. Better accuracy. More marks.

Disclaimer: GST exemption provisions and thresholds can be amended through notifications/circulars. Students should always cross-check the applicable provisions and the latest ICAI Study Material/RTP/MTP for their attempt before relying on any revision chart.

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