Finance Minister, Nirmala Sitharaman in the latest GST Council Meeting exempted pure and composite services provided to Central/State/UT governments and local authorities on any function entrusted to Panchayat/ Municipality.
According to Article 243G of the Constitution, State Legislatures may by law endow Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government.
Article 243 W of the Constitution of India speaks about the powers, authority and responsibilities of Municipalities, etc Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow
The Council noted that the Entries at Sl. No. 3 and 3A of notification No. 12/2017-CTR dated 28.06.2017 exempts pure and composite services provided to Central/State/UT governments and local authorities in relation to any function entrusted to Panchayat/ Municipality under Article 243G and 243W of the Constitution of India. The GST Council has recommended to retain the existing exemption entries with no change.
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