Important Keyword: GST not a supply India, GST government services India, notification 14/2017 GST, Article 243G GST, GST scope of supply India,
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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. 14/2017 - Central Tax (Rate): To notify the supplies which shall be treated neither as a supply of goods nor a supply of service under the CGST 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 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. 14/2017 – Central Tax (Rate)
Q1: What is Notification 14/2017 in GST?
Answer: It defines non-supply activities.
Certain government functions are not treated as supply under GST.
Q2: What is “not a supply” in GST?
Answer: Outside GST scope.
These transactions are not taxable at all.
Q3: Which activities are covered?
Answer: Panchayat-related functions.
Government activities under Article 243G are covered.
Q4: Is GST applicable on these activities?
Answer: No GST applies.
They are completely outside GST.
Q5: Does ITC apply here?
Answer: No ITC.
Since no GST applies, ITC is not available.
Q6: Is this same as exemption?
Answer: No, very different.
Exempt supply is taxable but at 0%, while this is outside GST.
Q7: What is Article 243G?
Answer: Defines Panchayat functions.
It lists responsibilities of local self-government.
Q8: Are contractors covered?
Answer: No.
Contractors providing services are still taxable.
Q9: Does this apply to municipalities?
Answer: Similar logic applies.
But depends on function and notification.
Q10: Can mistakes lead to penalty?
Answer: Yes.
Wrong classification can lead to tax demand.
Q11: Is this still applicable?
Answer: Yes, active provision.
Check updates if any changes occur.
Q12: What is public authority?
Answer: Government acting officially.
Not commercial or business activity.
Q13: Why is this important?
Answer: Defines GST scope.
Helps avoid incorrect taxation.
Q14: Can businesses rely on this?
Answer: Only if applicable.
Must carefully verify conditions.
Q15: Where to get GST help?
Answer: Expert support is useful.
Many businesses rely on professionals.
Download PDF: Notification No. 14/2017 – Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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