No GST on supply of Services provided by one Government/ Government Authority to other, but GST chargeable on supply of goods between Governments/ Government Authorities.

Facts: In this case, the applicant i.e. ITDA, a local authority under the control of Uttarakhand Government seeks an advance ruling on the question that whether the services or material procured by them from Indian Institute of Technology (IITs) which is also a Government or Government Authority, is exempted from GST. 

Issue: Whether the services or material procured by applicant from Indian Institute of Technology (IITs) which is also a Government or Government Authority, is exempted from GST.

Held: The AAR observed that on considering the serial no. B of Part 3 of GST Tariff-Services [Chapter 99] which provides the list of nil rated/ fully exempted services, the services provided by one Government/Authority to other Government/ Authority shall be exempted from payment of GST.  Further, as regard to the supply of goods by one Government/Government Authority, there is no exemption from GST hence, the same shall be taxable. 

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