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Informative

Market Leasing by Panchayat is a Constitutional Function, not Supply of Goods/Services under GST: AAR

Update / Judgement Date

31 Aug 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

GSTOther Legal Matters

The AAR has ruled that "market leasing by a panchayat" is a "constitutional function," not a "supply of goods/services under GST." The ruling is a significant step towards a more user-friendly and less intrusive tax environment, is aimed at simplifying the tax structure and reducing the tax burden on essential goods. The move is expected to have a significant impact on various sectors.