Governmental authority status does not itself create GST exemption; supplies remain taxable absent a specific notification.

A development authority constituted under a State urban planning statute may qualify as a governmental authority for GST purposes, but that status does not by itself create exemption. The applicable GST notifications, read with the definitions of business and person, show that public functions performed by such an authority remain taxable unless a specific exemption applies. On that basis, the authority was not treated as an exempt entity and the supplies made by it were held liable to tax.

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Issues: Whether the development authority constituted under the Uttar Pradesh Urban Planning and Development Act, 1973 is an exempt entity under the GST law and whether the services supplied by it are liable to tax.

Analysis: The Authority held that the development authority is constituted under a State Legislature enactment and falls within the definition of governmental authority. It was not treated as an exempt entity under the Central Goods and Services Tax Act, 2017 or the Uttar Pradesh Goods and Services Tax Act, 2017. The relevant notifications governing exemption and rate, together with the definitions of business and person, showed that activities undertaken by such authority in discharge of public functions do not create exemption by themselves, and the supplies made by it remain taxable unless specifically exempted.

Conclusion: The development authority is a governmental authority, not an exempt entity, and the supplies made by it are liable to tax in accordance with the applicable GST notifications.

Final Conclusion: The applicant's claim to exemption was negatived, and the advance ruling affirmed taxability of the supplies made by the development authority.

Ratio Decidendi: An authority constituted under a State urban development statute may be a governmental authority for GST purposes, but it does not become an exempt entity unless covered by a specific exemption notification; in the absence of such exemption, its supplies remain taxable.

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