Exemption of services provided to Government- AAR Compilation

As per Notification No. 12/2017 - Central Tax (Rate), certain services provided to the Government are exempted under GST. Following is the list of services as mentioned in the said notification:

1. Pure services (excluding works contract service or other composite supplies involving the supply of any goods) provided to the Central Government, State Government Union territory, or local authority by way of any activity about any function entrusted to a Panchayat under article 243G of the Constitution or about any function entrusted to a Municipality under article 243W of the Constitution.
2. Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 percent. of the value of the said composite supply provided to the Central Government, State Government or Union territory, or local authority by way of any activity about any function entrusted to a Panchayat under article 243G of the Constitution or about any function entrusted to a Municipality under article 243W of the Constitution.
3. Services provided to a Governmental Authority by way of -
   1. Water supply
   2. Public health
   3. Sanitation conservancy
   4. Solid waste management
   5. Slum improvement and upgradation.
   Also, certain services provided by the Government are exempted under GST. Following is the list of services as mentioned in the said notification:
   1. Services by governmental authority by way of any activity about any function entrusted to a municipality under article 243 W of the Constitution.
   2. Services by a Governmental Authority by way of any activity about any function entrusted to a Panchayat under Article 243G of the Constitution.
   3. Services by the Central Government, State Government, Union territory, or local authority excluding the following services:
      1. Services by the Department of Posts and the Ministry of Railways (Indian Railways)
      2. Services about an aircraft or a vessel, inside or outside the precincts of a port or an airport
      3. Transport of goods or passengers
      4. Any service, other than services covered under entries (a) to (c) above, provided to business entities.
   4. Services provided by the Central Government, State Government, Union territory or local authority to a business entity with an aggregate turnover of up to such amount in the preceding financial year as makes it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017 (12 of 2017).
   5. Services provided by the Central Government, State Government, Union territory, or local authority to another Central Government, State Government, Union territory, or local authority.
   6. Services provided by the Central Government, State Government, Union territory, or a local authority where the consideration for such services does not exceed five thousand rupees.
   There are many advance rulings about GST on services provided by or to the Government. We have compiled it for you!

Conclusion :

Taxpayers must scrutinize multiple advance rulings concerning this matter to firstly ascertain if the assessee aligns with the Government's definition, and secondly, whether its functions are enumerated in either Article 234W or 234G of the constitution.