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New GST Service Exemptions From 1 November 2026: Toll Rights, Coffee Curing, Warehousing and More
GST3 min read

New GST Service Exemptions From 1 November 2026: Toll Rights, Coffee Curing, Warehousing and More

GST exemptions from 1 Nov 2026 under Notification 07/2026-CT (Rate): toll rights, coffee curing, seamen provident fund, helicopter seat-share and warehousing.

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Key takeaways: gst service exemptions

  • GST service exemptions under Notification 07/2026-Central Tax (Rate) apply from 1 November 2026.
  • New nil-rate entries: Seamen’s Provident Fund Organisation services, toll rights granted by government bodies, and curing of coffee.
  • Entry 24B now covers storage or warehousing of cereals, pulses, fruits, vegetables and seeds meant for sowing.
Gst service exemptions: New GST Service Exemptions From 1 November 2026: Toll Rights, Coffee Curing, Warehousing and More

Notification No. 07/2026-Central Tax (Rate), dated 27 October 2026, amends the exemption notification for services (No. 12/2017-Central Tax (Rate)). The changes apply from 1 November 2026. Here is what is new.

New nil-rate entries

Entry Service exempted
31AA (heading 9971 or 9991) Services by the Seamen’s Provident Fund Organisation to persons governed by the Seamen’s Provident Fund Act, 1966
42A (heading 9973) Grant of exclusive right of way or access, licence, and authority to demand, collect and appropriate toll fees by the Central Government, a State Government, a Union Territory, a local authority, a governmental authority or a government entity
54A (heading 9986) Curing of coffee supplied to coffee cultivators (“curing” has the meaning in clause (d) of section 3 of the Coffee Act, 1942)

Amended entries

  • Entry 15 (passenger transport): a new item (aa) exempts passenger transport by helicopter on a seat-share basis, where the journey begins or ends at an airport (including a helipad) in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim or Tripura, or at Bagdogra in West Bengal.
  • Entry 24B (storage and warehousing): now reads “services by way of storage or warehousing of cereals, pulses, fruits, vegetables and seeds meant for sowing”.
  • Entry 21A (goods transport agency): an explanation excludes goods transport agency services for goods supplied through an electronic commerce operator.

New and changed definitions

  • “Goods transport agency” now means any person providing road transport of goods who issues a consignment note, by whatever name called.
  • “Seed” is defined as planting material and vegetatively propagated material used or intended for propagation or sowing. This includes seedlings, tubers, bulbs, rhizomes, roots, cuttings, grafts and tissue culture plantlets.

Why it matters

  • Toll road operators and government bodies: the grant of toll rights to collect toll is exempt, and a special procedure applies to concessionaires under the toll-operate-transfer model.
  • Coffee growers and curing units: curing services supplied to cultivators are exempt.
  • Warehouses storing seeds for sowing, cereals, pulses, fruits and vegetables: check that your service fits Entry 24B.

Related: rate and ITC changes from 1 November 2026. For GST advice, see our GST services.

What to do next about gst service exemptions

Review how gst service exemptions affects your business: note the effective date, check your records and software, brief your team and keep a copy of the official text on file. Where the position is unclear for your case, take professional advice before filing or changing your process.

Official sources for gst service exemptions

Always read the original text. You can find notifications, circulars and rules on the CBIC Tax Information Portal and file returns and applications on the GST Portal. This guide on gst service exemptions is a summary and is not a substitute for the official text.

Frequently asked questions

Is toll collection exempt under the new notification?

The grant of the right to collect toll by government bodies is exempt under new Entry 42A, from 1 November 2026.

What does the new warehousing entry cover?

Storage or warehousing of cereals, pulses, fruits, vegetables and seeds meant for sowing.

Is helicopter transport exempt everywhere?

No. Only seat-share helicopter passenger transport where the journey begins or ends at an airport or helipad in the listed North-Eastern States or at Bagdogra.

This article is for general information only and is not tax, legal or financial advice. It is based on the text of the notification or circular as published by CBIC. Rules, rates and criteria change, so confirm the latest position with the official source or a professional before acting.

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Written byGOURAV CHOUDHARY

CHARTERED ACCOUNTANT

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