https://www.taxtmi.com/highlights?id=88463 The AAR determined that leasing weekly market space to tender contractors for collecting entry fees from vendors/farmers constitutes a function entrusted to Panchayat under Article 243G. The activity is considered a public authority service and falls outside the GST taxable framework. The ruling clarifies that such activities, even when performed through contractors, remain exempt from taxation under Notification No. 14/2017-CT (Rate). The key principle is that the essential constitutional function remains unchanged regardless of administrative execution method. The back-to-back contract arrangement does not alter the fundamental nature of the service, and thus remains non-taxable, effectively preserving the constitutional intent of local government service provision. en-us Fri, 16 May 2025 08:40:38 +0530 Fri, 16 May 2025 08:40:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=88463 The AAR determined that leasing weekly market space to tender contractors for collecting entry fees from vendors/farmers constitutes a function entrusted to Panchayat under Article 243G. The activity is considered a public authority service and falls outside the GST taxable framework. The ruling clarifies that such activities, even when performed through contractors, remain exempt from taxation under Notification No. 14/2017-CT (Rate). The key principle is that the essential constitutional function remains unchanged regardless of administrative execution method. The back-to-back contract arrangement does not alter the fundamental nature of the service, and thus remains non-taxable, effectively preserving the constitutional intent of local government service provision. Highlights GST Fri, 16 May 2025 08:40:38 +0530 https://www.taxtmi.com/highlights?id=88463