The Institute of Chartered Accountants of India (ICAI), through its GST & Indirect Taxes Committee, has released a comprehensive publication titled “Handbook on Government Supplies under GST (Including TDS Provisions)”, aimed at providing practical and detailed guidance on GST implications relating to supplies made to and by Government entities.
The publication has been comprehensively updated incorporating amendments and legal developments up to 15th April 2026 and seeks to address the growing interpretational and compliance challenges arising in Government-related GST transactions.
Focus on Government Transactions under GST
ICAI noted that GST implications on Government supplies continue to remain a relatively underexplored yet highly significant area under the GST framework. The publication aims to bridge this knowledge gap by offering a structured and practice-oriented analysis of taxation provisions applicable to Government departments, Government entities, local authorities, and public authorities.
The Handbook extensively discusses important concepts including:
- Meaning and scope of “Government” and “Local Authority” under GST;
- Taxability of supplies made to and by Government;
- Reverse Charge Mechanism (RCM) implications;
- Exemptions applicable to Government transactions;
- GST registration and invoicing requirements;
- Tax Deducted at Source (TDS) provisions under GST; and
- Compliance obligations for Government departments and agencies.
Detailed Guidance on TDS under GST
A significant highlight of the publication is its detailed coverage of TDS provisions under GST, including registration requirements, deduction procedures, payment mechanism, return filing, issuance of certificates, and compliance responsibilities of Government deductors.
The Handbook also examines practical issues relating to procurement contracts, works contracts, legal services, sponsorship services, transportation services, and supplies involving Governmental Authorities and Government Entities under the GST regime.
Comprehensive Analysis of Government-related GST Provisions
The publication provides extensive discussion on constitutional and statutory concepts relevant for GST applicability on Government transactions, including:
- Sovereign and non-sovereign functions;
- Activities covered under Articles 243G and 243W of the Constitution;
- GST applicability on supplies by local authorities and Government agencies;
- Services treated neither as supply of goods nor services under Schedule III;
- Reverse charge liabilities on Government-related transactions; and
- Exemptions relating to legal services, arbitral tribunal services, GTA services, and other notified supplies.
ICAI Leadership Highlights Importance of the Publication
In the Foreword to the publication, ICAI President observed that the continuous evolution of GST law through legislative amendments, judicial pronouncements, and administrative clarifications necessitates ongoing professional learning and vigilance among stakeholders.
The GST & Indirect Taxes Committee, led by Chairman, and Vice-Chairman, stated that the publication has been developed to provide practitioners and Government functionaries with a clear and structured understanding of GST provisions applicable to Government transactions and TDS compliance.
Valuable Resource for Professionals and Government Departments
ICAI expressed confidence that the Handbook would serve as a valuable technical resource for Chartered Accountants, tax practitioners, Government officials, and stakeholders dealing with GST compliance, procurement, taxation, and contractual arrangements involving Government entities.
The publication has been released by the GST & Indirect Taxes Committee of ICAI and is available through ICAI’s publication and technical knowledge platforms.
The Handbook can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/05/Handbook-on-Government-Supplies-under-GST-Including-TDS-Provisions-–-11-05-2026.pdf
