It is utmost important whether the works contract services provided is to the Government to determine the application of various provision of GST Laws, rules and notification issued in this regard and accordingly determine the applicability of tax rates.
As per section 2(53) of the CGST Act, 2017, ‘Government’ means the Central Government. There is no further reference are given whether State Government, Local authority, Government Authorities, Government entities are considered in given definition or not.
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.
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 officers 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.
The reference taken from the General Clause Act, 1897 and the Constitution of India, An agreement which is entered on behalf of President of India through officers subordinate to him is considered that the agreement is entered by Central Government.