GST exemptions requiring supply to the Government do not extend...

GST exemptions requiring supply to the Government do not extend to government societies. Consultancy to establish incubators for a rural livelihoods society does not directly perform functions under Article 243G; the claimed government-recipient exemptions are unavailable, and the consultancy attracts GST at 18%. Incubation and capacity building form a composite supply, with incubation and enterprise development as the principal supply. Under the contractual arrangement, enterprise-support grants and loans form part of taxable value; passing them on to enterprises alone does not establish a pure-agent exclusion. That exclusion requires written authorisation, actual-cost recovery, separate invoicing and no ownership or benefit to the supplier. The technology business incubator exemption applies only from the effective date of NSTEDB recognition, subject to its conditions.