Government of India

Ministry of Finance

Department of Revenue

Tax research Unit

To,

The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) /

The Principal Director Generals/ Director Generals (All)

Madam/Sir,

Subject: Applicability of Service Tax on Asian Development Bank (ADB) and International Finance Corporation (IFC) - reg.

Kind reference is invited to Circular No 83/02/2019-GST dated 01.01.2019 clarifying that that the services provided by IFC and ADB are exempt from GST in terms of provisions of IFC Act, 1958 and ADB Act. The exemption will be available only to the services provided by ADB and IFC and not to any entity appointed by or working on behalf of ADB or IFC.

2. It is hereby clarified that the said circular shall apply, mutatis mutandis, to Service Tax also.

3. The appeal filed by the department in Supreme Court against the CESTAT, Mumbai order dated 17-10-2016 in the case of M/s Coastal Gujarat Power Ltd is proposed to be withdrawn.

4. Difficulty if any, in implementation of this Circular may be brought to the notice of the Board.

Yours Faithfully,

(Shashikant Mehta)

OSD, TRU

Email :shashikant.mehta@gov.in

Tel: 011 2309 5547