Category: Government Institutions under GST

1. As per section 2(53) of the CGST Act, 2017, ‘Government’ means the Central Government.
2. As per clause (23) of section 3 of the General Clauses Act, 1897 the ‘Government’ includes both the Central Government and any State Government.
3. As per clause (8) of section 3 of the saidAct, the ‘Central Government’, in relation to anything done or to be done after the commencement of the Constitution, means the President.
4. As per Article 53 of the Constitution,
   the executive power of the Union shall be vested in the
   President and shall be exercised by him either directly or
   indirectly through officers subordinate to him in accordance
   with the Constitution.
5. Further, in terms of Article 77 of the Constitution, all executive actions of the Government of India shall be expressed to be taken in the name of the President.
   Therefore, the Central Government means the President and
   the officers subordinate to him while exercising the executive
   powers of the Union vested in the President and in the name
   of the President.
6. Similarly, as per clause (60) of section 3 of the General Clauses Act,1897, the ‘State Government’,as respects anything done after the commencement of
   the Constitution, shall be in a State the Governor, and in an Union Territory the Central Government. As per Article 154 of the Constitution, the executive power of the State shall be vested in the Governor and shall be exercised by him either directly or indirectly through officers subordinate to him in
   accordance with the Constitution. Further, as per article 166 of the Constitution, all executive actions of the Government of State shall be expressed to be taken in the name of Governor. Therefore, State Government means the Governor or the officers subordinate to him who exercise the executive powers of the State vested in the Governor and in the name
   of the Governor.

1. Yes, the Government or a local authority or a
   governmental authority is liable to pay tax on supply of
   services other than the services notified as exempt or
   notified as neither a supply of goods nor a supply of services
   under clause (b) of sub-section (2) of section 7 of the CGST
   Act, 2017.
2. In respect of services other than –

(i) renting of immovable property;

(ii) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Government; and

(iii) services in relation to an aircraft or a vessel, inside or outside the precincts of an airport or a port,

the service recipients are required to pay the tax under reverse charge
mechanism.

1. No, all services provided by the Government or
   a local authority are not exempt from tax.
2. As for instance,services, namely,

(i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Government;
(ii) services in relation to an aircraft or a vessel, inside or
outside the precincts of an airport or a port;

(iii) transport of goods or passengers; or

(iv) any service, other than servicescovered under (i) to (iii) above, provided to business entities are not exempt and that these services are liable to tax.

That said, most of the services provided by the Central
Government, State Government, Union Territory or local
authority are exempt from tax.

These include services provided by government or a local authority or governmental authority by way of any activity in relation to any function
entrusted to a municipality under Article 243W of the Constitution and services by a governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution.

[FAQ1: Government Services