Weekly Market Fee Collection by Panchayat: GST Exempt

In re Kannivadi Town Panchayat (AAR Tamilnadu)

The Tamil Nadu Authority for Advance Ruling (AAR) examined a request from Kannivadi Town Panchayat, a local authority, regarding the Goods and Services Tax (GST) applicability on the activity of granting a tender to a contractor for collecting entry fees for a weekly market. The Town Panchayat, registered under GST for other services like renting property, sought clarification on whether this specific activity falls under the functions entrusted to a Panchayat under Article 243G of the Constitution and is consequently treated as neithe

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