# Services Provided to Government / Government Entities

## Entry 3 – Pure Services to Government

Pure services (i.e., NO goods element; excludes works contract & other composite supplies involving any goods)
Provided TO Central Government / State Government / Union Territory / Local Authority
By way of any activity in relation to a function entrusted to:
A Panchayat under Article 243G of the Constitution; OR
A Municipality under Article 243W of the Constitution.

## Entry 3A – Composite Supply (Goods ≤ 25%)

Composite supply of goods + services, where value of goods ≤ 25% of total value of the composite supply
Provided TO CG / SG / UT / Local Authority
For an Article 243G or 243W function.

## Entry 3B – Services to Governmental Authority

Services provided to a Governmental Authority by way of:

(a) Water supply

(b) Public health

(d) Solid waste management

(e) Slum improvement and upgradation

## Entry 11A – Fair Price Shops

Services by Fair Price Shops to CG/SG/UT, by way of sale of food grains, kerosene, sugar, edible oil, etc., under PDS, against commission or margin.

## Entry 40 – CG-funded Insurance

Services to CG/SG/UT under any insurance scheme for which total premium is paid by Government.

## Entry 72 – Government Training Programmes

Services to CG/SG/UT under any training programme where ≥ 75% of total expenditure is borne by Government.

Clarification: Free coaching by coaching institutions/NGOs under the central scheme "Scholarships for Students with Disabilities" (≥ 75% funded by Govt as grant-in-aid) is covered under Entry 72 → EXEMPT.

## Important Limitations

Indian Army / Government Ministries / Departments do NOT perform functions of a Panchayat / Municipality (Article 243G / 243W). Pure services or composite supplies to them are NOT exempt under Entries 3 / 3A.
MCD Headquarters – Facility Management Services Clarification:
Housekeeping, civil maintenance, furniture maintenance, horticulture at the MCD HQ relate to MCD's office upkeep – NOT to functions under Article 243W.
Therefore, GST is leviable at applicable rates; Entry 3A is NOT available.

Worked example

### Example 1

Example (Entry 3): A consultant prepares a town drainage plan (a 243W function – water supply/sanitation) for a Municipal Corporation; pure consultancy with no goods → EXEMPT under Entry 3.

### Example 2

Example (Entry 3A): A company supplies installation of street lights to a Municipality, where goods value is 22% of total composite supply → EXEMPT under Entry 3A.

### Example 3

Example (limitation): A facility-management firm provides housekeeping at MCD HQ office → TAXABLE (Article 243W function not involved).

### Example 4

Example (Entry 72): Government pays 80% of cost of a coaching programme for disabled students run by an NGO → EXEMPT under Entry 72.

⚠️ Common exam mistakes

Granting Entry 3/3A exemption for services to Government Departments / Indian Army – they do not perform 243G/243W functions.
Forgetting the 25% goods-value ceiling under Entry 3A – any value of goods above 25% disqualifies the composite supply.
Treating routine office upkeep at MCD HQ as related to 243W functions.
Applying Entry 72 when government funding is below 75%.

Reference: Entries 3, 3A, 3B, 11A, 40, 72 — Notification No. 12/2017-CT(R); Articles 243G & 243W, Constitution of India

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Services Provided to Government – Entries 3, 3A, 3B, 11A, 40, 72

Worked example

⚠️ Common exam mistakes