Chapter 99 - GST - Services - General Exemption from GST - CGST / UTGST / SGST / IGST

Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority 84 [ **** ] by way 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. Clarification Clarification on the applicability of GST on facility management services provided to Municipal Corporation of Delhi (MCD) Headquarters, New Delhi. [ See para 6 of Circular No. 245/02/2025-GST dated 28.01.2025 ] Clarification on supply of pure services and composite supplies by way of horticulture/horticulture works (where the value of goods constitutes not more than 25 per cent of the total value of supply) made to CPWD are eligible for exemption from GST. [ See para 6 of Circular No. 206/18/2023-GST dated 31.10.2023 ] Clarification on applicability of GST on sanitation and conservancy services supplied to Army and other Central and State Government departments. [ See para 7 of Circular No. 177/09/2022-TRU dated 03.08.2022 ] Clarification whether composite supply of service by way of milling of wheat into wheat flour, alongwith fortification, by any person to a State Government for distribution of such wheat flour under Public Distribution System is eligible for exemption. [ See Circular No. 153/09/2021-GST dated 17.06.2021 ] ************* Note: As amended vide Notification No. 16/2021- Integrated Tax (Rate) dated 18-11-2021 w.e.f. 01-01-2022 before it was read as Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way 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. Definition (zf) 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 90 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 or to a Panchayat under article 243G of the Constitution . (zfa) Government Entity means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government, with 90 per cent. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority. ********** Note: As inserted vide Notification No. 2/2018- Integrated Tax (Rate) Dated 25-01-2018