FAQ FOR GOVERNMENT DEPARTMENTS, LOCAL AUTHORITIES AND OTHER LINE DEPARTMENT

Government and local authority services face GST with reverse charge and targeted exemptions, plus TDS and registration duties. Government and local authority supplies are not universally exempt from GST; many constitutionally entrusted municipal and panchayat functions are exempt, while specified services (Department of Posts items, transport, aircraft/vessel related services, supplies to business entities, motor vehicle hires to non STUs excluded) remain taxable. Reverse charge applies to recipients above turnover thresholds except for listed exclusions, with reverse charge tax claimable as input tax credit by the supplier under Input Tax Credit Rules. Statutory bodies and autonomous agencies are not treated as 'Government' for exemption purposes. TDS (1% CGST and 1% SGST) applies to high value contracts, with registration, invoicing and electronic payment obligations outlined.