The Central Government vide Notification No. 02/2014-ST dated January 30, 2014(the Notification) has substituted the definition of ‘Governmental Authority’ to expand the scope of exemption to an authority or a board or any other body either set up by an Act of Parliament or a State Legislature orestablished by Government, with 90 percent or more participation by way of equity or control, to carry out any function entrusted to a municipalityunder Article 243W of the Constitution.
The Notification has amended the definition of “Governmental Authority” as provided under clause (s) of Para 2 of the Mega Exemption Notification No. 25/2012-ST dated June 20, 2012 as under:
(s) “Governmental Authority” means an authority or a board or any other body;
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by Government,
with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution.
Earlier, the “Governmental Authority” was defined as under:
“Governmental Authority’’ means a board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipalityunder article 243W of the Constitution.