It notifies certain  activities or transactions undertaken by the Central Government or state Government or any local authority, engaged as public authority, which shall neither be treated as a supply of goods nor a supply of services.

Amended vide notification No.

16/2018-Central Tax (Rate), dated 26.07.2018 (effective 27.07.2018) 

It notified “service by way of grant of alcoholic liquor license, against consideration in the form of license fee or application fee or by whatever name it is called” undertaken by the State Governments in which they are engaged as public authorities , to be treated neither as a supply of goods nor a supply of service.