The Central Government has amended the GST exemption provisions through Notification No. 07/2026-Central Tax (Rate), dated 27 October 2026, with effect from 1 November 2026. The changes provide relief for specified helicopter passenger services, seed storage, coffee curing, Seamen’s Provident Fund Organisation services and toll collection rights, while restricting a Goods Transport Agency (GTA) exemption for certain e-commerce-related transactions.

1. Helicopter Passenger Travel: Exemption for Seat-Sharing Services

Passenger transportation by helicopter on a seat-sharing basis is exempt where the journey begins or ends at an airport, including a helipad, located in any of the following places:

• Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim or Tripura.

• Bagdogra in West Bengal.

The exemption is intended to improve regional connectivity and reduce travel costs in specified areas.

Important: The exemption applies to qualifying seat-sharing passenger services. Chartered helicopter services are not covered by this exemption and must be assessed under the applicable GST provisions.

2. Storage and Warehousing of Seeds Meant for Sowing

The exemption under Entry 24B of Notification No. 12/2017-Central Tax (Rate) has been expanded to cover storage or warehousing of cereals, pulses, fruits, vegetables and seeds meant for sowing.

The notification also introduces a definition of “seed” covering specified crop seeds, planting material, seedlings, tubers, bulbs, rhizomes, roots, cuttings, grafts and tissue-culture plantlets used or intended for propagation or sowing.

The exemption is not restricted to agricultural crop seeds. However, seeds intended for consumption, industrial use or other non-sowing purposes do not qualify merely because they are seeds.

This change can reduce storage costs for farmers, seed traders, agricultural businesses and warehousing service recipients.

3. Coffee Curing Services Provided to Cultivators

A new exemption under Entry 54A covers coffee-curing services supplied to coffee cultivators.

For this purpose, “curing” has the meaning assigned under Section 3(d) of the Coffee Act, 1942. It involves mechanical processes, other than pulping, used to prepare raw coffee for marketing, including activities such as drying, hulling, cleaning, sorting, grading and polishing.

The exemption is specifically intended for coffee-curing services provided to cultivators. It does not automatically extend to roasting or other processing services that fall outside the prescribed meaning of curing.

4. Seamen’s Provident Fund Organisation Services

A new Entry 31AA exempts services provided by the Seamen’s Provident Fund Organisation (SPFO) to persons governed by the Seamen’s Provident Fund Act, 1966.

This measure provides GST relief for services supplied by the organisation to the covered persons. Businesses and individuals should verify that the service recipient falls within the scope of the specified legislation before applying the exemption.

5. Government Grant of Toll Collection Rights

New Entry 42A exempts services involving the grant of the exclusive right of way or access, licence and authority to demand, collect and appropriate toll fees.

The exemption applies where the relevant rights are granted for toll collection by the Central Government, State Government, Union Territory, Local Authority, Governmental Authority or Government Entity.

This provision is particularly relevant to highway concession arrangements, including qualifying Toll-Operate-Transfer projects, where a concessionaire pays an upfront amount for the right to collect tolls.

The exemption concerns the grant of toll collection rights. It should not be confused with the separate GST treatment applicable to road operation and maintenance services.

6. GTA Exemption Restricted for E-Commerce-Related Goods

Notification No. 07/2026-Central Tax (Rate) also amends Entry 21A of Notification No. 12/2017-Central Tax (Rate).

The amendment provides that the exemption under Entry 21A does not apply to services supplied by a Goods Transport Agency in relation to goods supplied through an electronic commerce operator (ECO).

Consequently, businesses should not automatically claim the Entry 21A exemption for qualifying GTA services connected with goods supplied through an e-commerce platform. The applicable GST treatment must be determined under the relevant provisions.

7. Effective Date and Compliance Checklist

The amendments take effect from 1 November 2026.

Businesses should:

1. Review invoices and contracts for services affected by the new exemptions.

2. Confirm that the relevant conditions are satisfied before treating a supply as exempt.

3. Update GST accounting systems and service classifications.

4. Review GTA transactions involving e-commerce platforms and reassess exemption eligibility.

5. Maintain supporting documents for helicopter seat-sharing services, seed storage, coffee curing and toll concession arrangements.

Conclusion

Notification No. 07/2026-Central Tax (Rate), dated 27 October 2026, introduces targeted GST exemptions for specified services while narrowing the availability of a GTA exemption for e-commerce-related goods. Businesses should review their transactions and update their GST compliance processes before the changes take effect.