legal metrology, transport department under state government..covered as 'Government'??

[RamKumar Lakkoju]

Good morning all experts!!

Are Legal metrology department and Transport department can be termed as regulatory bodies so as not to be covered under the definition of 'Government' for section 9(3) of CGST Act 2017?

[RAJA SWAMINATHAN]

As per Section 2(53) of CGST act Government has been defined as Central Government.

[Alkesh Jani]

Sir,

There is no specific article in our Constitution which specifically talks about the definition of "government". However, if we consider the simple definition of the term " government", then ideally it means a system by which a state or a country is governed , legislatively & administratively. Considering these two significant aspects of the term "government", it is interesting to note that one has to refer various articles of the Constitution of India.

The closest one with a kind of definition of government is Article 12: the STATE include government and parliament of India & the government and legislature of each of the states & all other local authorities within the territory of India or under the control of government of India.

2. The Legal metrology department and Transport department are Department of the Government. The Section 9(3) states that "9(3) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both."

Here it important to note that as per Section 2(84)

(84) “person” includes-

------------j. a local authority;

k. Central Government or a State Government;......."

In view of above even Central and State Government are covered as person, However, specific Exemption are given. The other experts are invited to correct me if mistaken.

[Himansu Sekhar]

Question 3: What is the meaning of ‘Government’ ?

Answer: As per section 2(53) of the CGST Act, 2017, ‘Government’ means the Central Government. As per clause (23) of section 3 of the General Clauses Act, 1897 the ‘Government’ includes both the Central Government and any State Government. As per clause (8) of section 3 of the said Act, the ‘Central Government’, in relation to anything done or to be done after the commencement of the Constitution, means the President. As per Article 53 of the Constitution, the executive power of the Union shall be vested in the President and shall be exercised by him either directly or indirectly through officers subordinate to him in accordance with the Constitution. Further, in terms of Article 77 of the Constitution, all executive actions of the Government of India shall be expressed to be taken in the name of the President.

Therefore, the Central Government means the President and the officers subordinate to him while exercising the executive powers of the Union vested in the President and in the name of the President. Similarly, as per clause (60) of section 3 of the General Clauses Act,1897, the ‘State Government’, as respects anything done after the commencement of the Constitution, shall be in a State the Governor, and in an Union Territory the Central Government. As per Article 154 of the Constitution, the executive power of the State shall be vested in the Governor and shall be exercised by him either directly or indirectly through officers subordinate to him in accordance with the Constitution. Further, as per article 166 of the Constitution, all executive actions of the Government of State shall be expressed to be taken in the name of Governor. Therefore, State Government means the Governor or the officers subordinate to him who exercise the executive powers of the State vested in the Governor and in the name of the Governor.

[Himansu Sekhar]

I hope this will solve the query raised by the queriest

[Alkesh Jani]

Thanks Himanshuji, for knowledge shared

[Himansu Sekhar]

OK sir

[RamKumar Lakkoju]

Good morning all,

Thanks you Mr. Himansu Sekhar.

Based on discussion, my conclusion is - As the legal metrology, transport departments are not executing any executive powers in the name of governor, They cannot be termed as Government.

Is it correct?

[YAGAY andSUN]

No, they are just appropriate authority(ies) in their respective area of work and LM Act; RTO Act etc. They derive power through their respect Acts as made by Parliament of India.

AI Summary

Definition of government: departmental regulatory bodies may still be treated as government for GST classification depending on statutory source of authority. Whether departmental bodies such as the Legal Metrology and Transport Departments constitute Government for section 9(3) of the CGST Act depends on statutory definitions and the source of executive authority: section 2(53) of CGST defines Government as Central Government; the General Clauses Act and Constitution equate Central and State Governments with the President and Governor respectively and their subordinate officers; section 2(84) treats governments as 'persons' for GST, while departmental entities derive powers from enabling statutes and function as statutory or appropriate authorities rather than by exercising executive power in the name of the President or Governor.