GST on Flood Relief Works

This query is : Resolved

Ch. Sai Sudha Mohan (Querist)
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10 September 2024 A person has been awarded a Contract from the local Municipality for supply of food to the people in the flood effected area.
Is this work exempted from GST or is GST chargeable as per normal contract works. Please guide. If the same is exempted, please share the relevant section also.
Thanks is advance.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 September 2024 Yes, exempted...
The services rendered to the authority shall be in relation to the function entrusted to the Municipality or Panchayat. One of the very important phrases used in the given notification is “in relation to” which needs to be analyzed.
The Apex Court in the matter of State Of Karnataka vs Azad Coach Builders Pvt. Ltd. & Anr has held that –
“The expression `in relation to’ are words of comprehensiveness, which might both have a direct significance as well as an indirect significance, depending on the context in which it is used and they are not words of restrictive content and ought not be so construed”
Also refer: https://www.taxmann.com/post/blog/no-gst-on-services-provided-to-a-governmental-authority-by-way-of-water-supply-public-health-etc/