Government service exemption for pure and limited goods composite supplies preserves tax relief for functions entrusted to local bodies. Exemption Entry 3 exempts pure services to government entities in relation to functions entrusted to Panchayats or Municipalities; Entry 3A exempts composite supplies to government where the goods component does not exceed twenty five percent, requiring case specific valuation; Entry 3B exempts specified public utility services. Circulars clarify application to milling for Public Distribution, horticulture works to CPWD when goods value is within the threshold, and that District Mineral Foundations qualify as Governmental Authorities for these exemptions.