Public authority activities relating to municipal functions are treated neither as supply of goods nor as supply of services. The notification amends the state GST notification to include 'or Union territory' and to treat activities relating to functions entrusted to a Municipality under Article 243W (and to a Panchayat under Article 243G) as neither as a supply of goods nor as a supply of services, thereby excluding such public-authority local government functions from GST supply classification pursuant to sub-section (2) of Section 7 of the Kerala State Goods and Services Tax Act.