PURE SERVICES TO GOVERNMENT

[Rajnish Mishra]

Dear all,

I want to know, that one of my relative having engineering consultancy services he provide service to WRD Dept. ( water resource department ) which is wholly controlled and owned by state government in madhya pradesh, he provides consultancy engineering services to department is he is liable to pay gst or it is exempted vide entry no. 3 of notification no. 12/2017-CT(Rate)

Please clear me, actually i hv discussed it with many people some told me taxable some told exempt, please clear the doubt.

AI Summary

Pure services exemption may apply when a service relates to constitutionally entrusted municipal or panchayat functions; classification decides GST liability.
Whether engineering consultancy to a state Water Resources Department is exempt depends on whether it is a pure service to a governmental entity and whether the service is "in relation to" a function entrusted to Panchayats or Municipalities; works contracts or composite supplies involving goods are excluded, so services that purely map to municipal/panchayat functions may be exempt while those involving goods or original works remain taxable.