Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. — GST rate 0%

As per Notification 12/2017 (amended by 16/2025), composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply provided to the central government, state government or union territory or local authority by way of any activity in relation to any function entrusted to a panchayat under article 243g of the constitution or in relation to any function entrusted to a municipality under article 243w of the constitution. classified under SAC Chapter 99 attracts 0% GST effective 22 September 2025. On an intra-state supply this is charged as 0% CGST plus 0% SGST; on an inter-state supply the full 0% is charged as IGST. This rate applies subject to the condition: Nil.