Some govt services may attract GST

The revised draft of the Central GST Bill proposes that government services such as issuing driving licence, passport and birth certificates would attract the goods and services tax (GST).
 
Earlier the Bill introduced in November 2016 had included these government services in Schedule IV, which is a list of exemption.
However, the revised bill has specifically mentioned that these services would qualify as “business”.
 
In view of this, GST would be applicable on passport services, issue of birth certificates, and other services, if these are not exempted at a later stage through an exemption notice by the government.
 
In addition, the non-compete amount given by an employer to its outgoing employee would be probably eligible for GST, though confirm information on this would be available only after the GST Council Meeting is held post-March 31.
 
The Schedule I of the Central GST bill has provided for an employer to gift to an employee an amount of up to Rs. 50,000 in a fiscal year without attracting GST, but employers will be unable to claim tax credit on this as it is treated as a “gift”.

However, any giveaway offered to an employee like cab services or food etc. will attract GST.