The Finance Ministry has clarified that Delhi Development Authority (DDA) cannot be treated as local authority under GST law.
It was clarified that DDA does not meet the requirement of local authority as per section 2(69) of the CGST Act, 2017. Thus, as recommended by the 55th GST Council, it is hereby clarified that DDA cannot be treated as local authority under GST law.
Representation has been received from DDA seeking clarification whether DDA is a ‘local authority’ as per section 2(69) of CGST Act, 2017.
As per entry at Sr. No. 5 of notification No. 13/2017-CTR dated 28.06.2017, services supplied by local authority to a business entity are taxable on Reverse Charge (RCM) basis.
Local authority under section 2(69) of the CGST Act, 2017 has been defined as a “Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund”
It means an authority which is similar to the elected self-governing body such as Municipal Committee and which is entrusted with the control and management of municipal or local fund can be termed as local authority.
Circular No. 245/02/2025-GST
Date: 28/01/2025
