Page 128 - GSTL_20th August 2020_Vol 39_Part 3

342 GST LAW TIMES [ Vol. 39
en by the Applicant would still be considered as activities undertaken by the
Governmental authority on which new GST is applicable.
The applicant seeks to claim exemption under Entry 3 of Notification No.
12/2017, dated 28-6-2017 which exempts pure services provided to Governmen-
tal authority, as under :

S. Chapter, Description of Services Rate Con-
No. Section, (Per dition
Heading, cent.)
Group or
Service
Code
(Tariff)
3 Chapter Pure services (excluding works contract Nil Nil
99 service or other composite supplies in-
volving supply of any goods) provided to
the Central Government, State Govern-
ment or Union territory or local authority
or a Governmental authority by wav of
any activity in relation to any function
entrusted to a Panchayat under article
243G of the Constitution or in relation to
any function entrusted to a Municipality
under article 243W of the Constitution.

The term ‘Governmental authority’ has been defined in the Explanation to Sec-
tion 2(16) of the IGST Act as under :
“Explanation - For the purposes of this clause, the expression “governmental
authority” means an authority or a board or any other body :
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government, with ninety per cent. or more
participation by way of equity or control, to carry out any
function entrusted to a municipality under article 243W of the
Constitution,”
Article 243W of the Constitution reads as under :
Subject to the provisions of this constitution, the Legislature of a state may
by law endow :
(a) The Municipalities with such powers and authority as may be nec-
essary to enable them to function as institutions of self-Government
and such law may contain provisions for the devolution of powers
and responsibilities upon municipalities, subject to such conditions
as may be specified therein, with respect to -
(i) The preparation of plans for economic development and social
justice;
(ii) The performance of functions and the implementation of
schemes as may be entrusted to them including those in rela-
tion to the manners listed in the Twelfth Schedule,
(b) The Committees with such powers and authority as may be neces-
sary to enable them to carry out the responsibilities conferred upon
them including those in relation to the matters listed in the Twelfth
Schedule.
GST LAW TIMES  20th August 2020  128