Government services excluded from supply under IGST: activities related to Panchayat and Municipality functions are not treated as supply. Notification exempts activities or transactions by Central, State, Union territory or local authorities, when acting as public authorities, from being treated neither as a supply of goods nor a supply of service; specifically including services in relation to functions entrusted to a Panchayat under article 243G and to a Municipality under article 243W, effective from the first day of July, 2017.