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2020 ] GST ON ROC FILING FEE PAID BY COMPANIES/LLPS J87
undertaken by Central or State Government or any local authority in which they
are engaged as public authorities are exigible to GST.
Now, let us examine the activities and transactions which are outside the
scope of supply. Section 7(2) provides for activities or transactions which shall be
neither treated as a supply of goods nor as supply of services. Section 7(2) reads
as follows :
(2) Notwithstanding anything contained in sub-section (1), -
(a) activities or transactions specified in Schedule III; or
(b) such activities or transactions undertaken by the Central Gov-
ernment, a State Government or any local authority in which
they are engaged as public authorities, as may be notified by
the Government on the recommendations of the Council,
shall be treated neither as a supply of goods nor a supply of services.
Sub-section (2) of Section 7 opens with a non obstante clause and states that activi-
ties or transactions undertaken by the Central or State Government or any local
authority in which they are engaged as public authorities, as may be notified by
the Government on the recommendations of the Council, shall be treated neither as
a supply of goods nor a supply of services.
In Builders Association of Navi Mumbai, Neelsidhi Realties v. Union of India
in Writ petition No. 12194 of 2017 [2018 (12) G.S.T.L. 232 (Bom.)], the Bombay
High Court held that in the absence of notification any activity of a Government
or Government company cannot be considered as exempt from the levy of GST.
Thus, it appears that the default position is that all activities or transac-
tions undertaken by the Central Government, a State Government or any local
authority are taxable under GST and it is only by way of a specific exemption
notification that their activities or transactions can claim immunity from GST.
In Re : Divisional Forest Officer, Dehradun [2018 (14) G.S.T.L. 159 (A.A.R. -
GST)], the Authority for Advance Ruling, Uttarakhand held that “Abhivahan
Shulk”, charged and collected by applicant in respect of forest produce carried
out by a person is a form of consideration received by the applicant in lieu of
services provided to the person for carrying forest produce and hence taxable at
18%. On appeal by the applicant, the order of AAR was upheld by the Appellate
Authority after noting that “Abhivahan Shulk” is not specified in Schedule-III of
Section 7 and also not covered by any notification for exception in terms of Sec-
tion 7(2)(b).
Exemption on Government services under GST
Although the statutory functions performed by Central/State Govern-
ment or Local Authorities in which they are engaged as public authorities qualify
as taxable supply, Section 11 of CGST Act empowers Government, on recom-
mendation of GST Council, to exempt whole or any part of tax leviable on such
supplies by way of notification.
Accordingly, Notification No. 12/2017-C.T. (Rate), dated 28th June, 2017
provides exemption for inter alia service provided by Central Government, State
Government, Union territory or a local authority. Serial No. 6 of the notification
provides exemption to services supplied by the Central Government, State Gov-
ernment, Union territory or local authority excluding the following services -
(a) services by the Department of Posts by way of speed post, express
parcel post, life insurance, and agency services provided to a person

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