Service provided by government

153 views 3 replies

Harshit Acharya

404 Points Joined January 2020

According to sec.7(2)(b),any s service provided by government agencies shall neither be treated as goods nor services.
So , they are not taxable.
But , in s.9(3) there is a provison which says services provided by government to business entities located in taxable territory shall be taxed on reverse charge basis.
How is it possible?

Replies (3)

sanjith kotni

Articled assistant

663 Points Joined November 2015

Friend .
I have replied to your query here. -https://sanjithkotni.blogspot.com/.

MARIES

GST Consultant

219 Points Joined April 2020

@ Harshit,

Dear Sir, each and every word in law has to be read carefully. Section 7(2)(b) does not say ANY SERVICE...but it provides "SUCH ACTIVITIES OR TRANSACTIONS UNDERTAKEN BY THE GOVT..". So far, only one activity under this section is notified i.e. the services by way of any activity in relation to a function entrusted to a Panchayat under Article 243G of the Constitution of India.

Hence, if the activity of the Government falls under article 243G, then no GST is appliable. Hence, there is no contradiction between section 7(2)(b) and section 9(3). If doubt still persists, we may discuss through whatsapp on 6380 592 749