Redefining Local Authority under GST Laws

The Finance Bill, 2025 has proposed to provide for definitions of the terms “local fund” and “municipal fund” used in the definition of “local authority”. The memorandum to the Finance Bill calls this amendment to be clarificatory in nature without assigning any reasons. “Local authority” under goods and services tax (GST) laws enjoys special status in view of concessional rates and exemptions to…