Exemption for government-procured pure services relating to Panchayat or Municipality functions preserves GST relief for specified service supplies. Exemption from GST covers pure services (excluding works contracts and composite supplies involving goods) provided to central, state, union territory or local authorities for activities related to Panchayat functions under article 243G and Municipality functions under article 243W. Circulars clarify coverage for certain horticulture works, sanitation and conservancy services to government departments, and ambulance services under the National Health Mission. Amendments define Governmental Authority and Government Entity as public bodies established by statute or government with predominant participation or control, restricting exemptive beneficiaries to entities meeting that public participation threshold.