In exercise of the powers conferred by section 7(2) of the CGST Act, 2017

the Central Government notifies that the following activities or transactions undertaken by the Central Government or State Government [1][or Union territory] or any local authority in which they are engaged as public authority, shall be treated neither as a supply of goods nor a supply of service, namely:-

“Services by way of any activity in relation to a function entrusted

to a Panchayat under article 243G of the Constitution

[2][or to a Municipality under article 243W of the Constitution].