Notification

Dear Readers

Notification No 14/2017 Central Tax Rate notifies that

activities undertaken by

Central Govt

State Govt

Local Authority in which they are engaged as public authority

to panchayat under acticle 243G of the constitution

shall neither be treated as 

Supply of goods

Nor Supply of services 

"Services by way of any activity in relation to function entrusted to a panchayat under acticle 243G of the constitution"

The Articles of the 243G, of constitution of India deals with the power, authority and responsibility of Panchayats. It covers subjects such as preparation of plans for economic development and social justice.

Notification Link  

Therefore services provided by Central Govt, State Govt or local authority

to Panchayats only

will neither be treated as supply of goods or supply of services.

If panchayats receive Supplies from anybody else, GST will be applicable.

Thanks

CA Rahul Gupta