Important Keyword: GST non supply India, notification 11/2017 IGST, panchayat GST exemption, GST government services India, section 7 GST non supply,
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[F. No.334/1/2017 -TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 28th June, 2017
Notification No. 11/2017 - Integrated Tax (Rate): To notify the supplies which shall be treated neither as a supply of goods nor a supply of service under the IGST Act
GST: [TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R......(E).- In exercise of the powers conferred by clause (i) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 7 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council hereby notifies that the following activities or transactions 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, namely:-
“Services by way of any activity in relation to a function entrusted to a Panchayat under article 243G of the Constitution.”
2. This notification shall come into force with effect from the 1st day of July, 2017.
(Ruchi Bisht)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 11/2017 — Integrated Tax (Rate)
Q1: What is Notification 11/2017 IGST?
Answer: It defines non-supply activities.
Certain government functions are treated as neither supply of goods nor services.
Q2: What does “neither supply” mean?
Answer: GST does not apply at all.
These activities are completely outside GST scope.
Q3: Is GST payable on such activities?
Answer: No.
There is no GST liability.
Q4: Are these exempt supplies?
Answer: No.
They are not even considered supply.
Q5: Who can claim this benefit?
Answer: Government and local authorities.
Private entities cannot claim it.
Q6: What is Article 243G?
Answer: Constitutional provision.
It defines functions of Panchayats.
Q7: Can contractors use this benefit?
Answer: No.
They are taxable unless specifically exempt.
Q8: Is ITC available?
Answer: No.
Since not a supply, ITC concept doesn’t apply.
Q9: Should it be reported in GST returns?
Answer: No.
It is outside GST scope.
Q10: What is biggest confusion?
Answer: Exemption vs non-supply.
People treat them as same.
Q11: Is this still applicable?
Answer: Yes.
It remains active.
Q12: Can government activities be taxable?
Answer: Yes, in some cases.
Only specific functions are non-supply.
Q13: What happens if misclassified?
Answer: It may lead to notices.
Tax demand and penalties may apply.
Download PDF: Notification No. 11/2017 — Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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