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Services provided to Government:-

CCP 08.12.22.00
Gita Services Limited, registered under GST, is engaged in providing various services to Government.
The company provides the following information in respect of services provided during the month of
April:-

S.no. Description of Service Provided
(i) Supply of manpower for cleanliness of roads not involving any supply of goods.
(ii) Service provided by Fair Price Shops owned by Gita Services Limited by way of sale of sugar under
Public Distribution System against consideration in the form of commission.
(iii) Service of maintenance of street lights in a Municipal area involving replacement of defunct lights and

other spares along with maintenance. Generally, replacement of defunct lights and other spares
constitutes 35% of the supply of service.
(iv) Service of brochure distribution provided under a training programme for which70% of the total

expenditure is borne by the Government.
(v) Services provided by Goods & service tax network to the Maharashtra Government
Comment on the taxability or otherwise of the above transactions under GST law. Also state the
correct legal provisions for the same. [CA Inter RTP -May 22]
Answer:-

S.No. Particulars Taxability Reason
(i) Supply of manpower for cleanliness of roads Exempt Pure services provided to CG or SG or UT are
not involving any supply of goods. exempt.

(ii) Service provided by Fair Price Shops by way Exempt Service provided by Fair Price Shops to Government
of sale of sugar under Public Distribution by way of sale of sugar under Public Distribution
System System against commission is exempt.
(iii) Service of maintenance of street lights in a Taxable Composite supply of goods & services to Government
Municipal area involving replacement of in which the value of supply of goods constitutes not

defunct lights and other spares constituting more than 25% of value of the said composite supply
35% of the supply of service. is exempt. Since, in this case value of supply of goods
constitutes 35% of supply of composite service, same
is taxable.

(iv) Service of brochure distribution provided Taxable Services provided to Government under any training
under a training programme programme forwhich 75% or more of total
expenditure is borne by Governmentis exempt. Since

in given case, 70% of the total expenditure is borne
byGovernment, it is taxable.
(v) Services provided by GSTN to the Taxable Services provided by Goods & service tax network
Maharashtra Government to the CG or SG or UT for implementation of GSTN
are taxable
Authors Note:

Earlier Services provided by Goods & service tax network to the CG or SG or UT for implementation of GSTN
are exempt but now the exemption has withdrawn

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