DMFT Set Up By The State Governments Are Governmental Authorities, Eligible For GST Exemptions: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has clarified that District Mineral Foundations Trusts (DMFTs) set up by the state governments are eligible for GST exemptions.

DMFTs work for the interest and benefit of persons and areas affected by mining-related operations by regulating receipt and expenditure from the respective Mineral Development Funds created in the concerned district. They provide services related to drinking water supply, environment protection, health care facilities, education, welfare of women and children, supply of medical equipment etc.

The activities are similar to activities that are enlisted in the Eleventh Schedule and Twelfth Schedule of the Constitution. The ultimate users of the various schemes under DMF are individuals, families, women and children, farmers/producer groups, SHGs of the mining-affected areas etc. The services/supplies out of DMF funds are provided free of charge and no consideration is realized from the beneficiaries by DMF against such services.

The Board has clarified that DMFTs set up by the State Governments are Governmental Authorities and thus eligible for the same exemptions from GST as available to any other Governmental Authority.

Circular No. 206/18/2023-GST

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