Delhi Development Authority Can’t Be Treated As Local Authority Under GST law, Clarifies FinMin

Date:

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

Click Here To Read Circular

Read More: GST Applicable On Services Provided By Facility Management Agency To Municipal Corporation Of Delhi Headquarters, Clarifies FinMin

Mariya Paliwala
Mariya Paliwalahttps://jurishour.in/
Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.

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