Meaning of ‘local authority’:
Section 2(69) of CGST Act reads as follows —
“Local authority” means
(a) a “Panchayat” as defined in clause (d) of Article 243 of the Constitution
(b) a “Municipality” as defined in clause (e) of Article 243P of the Constitution.
(c) a Municipal Committee, a ZillaParishad, 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.
(d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006.
(e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution.
(f) a Development Board constituted under Article 371 of the Constitution or
(g) a Regional Council constituted under Article 371A of the Constitution.
Local body is not local authority – Local bodies constituted by State or Central Law are not ‘local authorities’ – Para 2.4.9 of CBE&C’s ‘Taxation of Services : An Education Guide’ published on 20-6-2012.
Functions entrusted to municipality – Functions entrusted to municipality under Article 243W of Constitution of India have been listed in Para 7.3.2 of CBE&C’s ‘Taxation of Services : An Education Guide’ published on 20-6-2012. These cover services like urban planning, regulation of land use, roads and bridges, water supply, public health, fire services, slum improvement, public amenities, functions entrusted to them by Government etc.