At many of the places in the GST, the word Central Government & State Government has been used including for the purpose of various exemptions, Reverse Charge Mechanism (service from Central/ State Government) etc.
Therefore, it is imperative to determine the meaning of the word Government for the GST purpose and to decide whether these statutory/autonomous authorities established by the Government by way of separate law or executive order are also Government or not.
In this regard, Jaipur Advance Authority for Advance decided that Jaipur Development Authority is not covered in the definition of the State Government. (Copy of Order is attached in the end of the article).
Analysis of the various points
As per section 2(53) of the CGST Act, 2017, 'Government' means the Central Government.
Similarly, as per sub-section 2(53) of the Rajasthan Goods and service Tax Act, 2017 "Government" means the Government of Rajasthan.
As per clause (23) of section 3 of the General Clauses Act, 1897 the 'Government' includes both the Central Government and any State Government.
As per clause (8) of section 3 of the said Act, the 'Central Government', in relation to anything done or to be done after the commencement of the Constitution, means the President.
Similarly, as per clause (60) of section 3 of the General Clauses Act,1897, the 'State Government', as respects anything done after the commencement of the Constitution, shall be in a State the Governor, and in an Union Territory the Central Government.
As per Article 53 of the Constitution, the executive power of the Union shall be vested in the President and shall be exercised by him either directly or indirectly through officer's subordinate to him in accordance with the Constitution.
Further, in terms of Article 77 of the Constitution, all executive actions of the Government of India shall be expressed to be taken in the name of the President. Therefore, the Central Government means the President and the officers subordinate to him while exercising the executive powers of the Union vested in the President and in the name of the President.
As per Article 154 of the Constitution, the executive power of the State shall be vested in the Governor and shall be exercised by him either directly or indirectly through officers' subordinate to him in accordance with the Constitution.
Further, as per article 166 of the Constitution, all executive actions of the Government of State shall be expressed to be taken in the name of Governor. Therefore, State Government means the Governor or the officers subordinate to him who exercise the executive powers of the State vested in the Governor and in the name of the Governor.
Since, the Jaipur Development Agency is a body corporate established by the Act passed by the State Legislation, having perpetual succession and having its own common seal. Therefore, it can not be considered as State Government.
Copy of the Order
Disclaimer: Â We did interpretation of Respected Authority Decision for purely academic purpose. In case, there is any mistake in understanding of the order, we are apologised to the Authority.
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