Services Provided to Local Authority Treatment in GSTR-1

This discussion clarifies how to report sales made to local government authorities in your GSTR-1 when TDS has been deducted. The consensus is that if the local authority possesses a GSTIN (which is indicated by TDS deduction), these sales should be reported under the B2B (Business-to-Business) section of GSTR-1. If, however, the authority does not have a GSTIN, then it would be classified as a B2C (Business-to-Consumer) transaction.