The Central Government notified that the activities of Punchayat would not be subject to GST such activities are neither good nor service for the purpose of the proposed Goods and Service Tax law.
The Notification issued today said that the services by way of any activity in relation to a function entrusted to a Panchayat under article 243G of the Constitution undertaken by the Central Government or State Government or any local authority in which they are engaged as public authority, shall be treated neither as a supply of goods nor a supply of service.
The Notification is applicable with effect from 1st July 2017.
Read the Full Text of the Notification Here
