Regarding RCM

[Prateek Agrawal]

WHETHER RCM is applicable on LAND DIVERSION FEE PAID TO GOVERNMENT BY THE BUSINESS ENTITY Under Section 9(3) of CGST Act ?

AI Summary

Business Must Pay GST on Land Diversion Fees via Reverse Charge Mechanism, per Notification No. 13/2017. A business entity inquired about the applicability of Reverse Charge Mechanism (RCM) under the Goods and Services Tax (GST) for land diversion fees paid to the government. Three respondents agreed that GST is payable under RCM. The first respondent cited Notification No. 13/2017 and explained that such fees are considered a service under Schedule II of the CGST Act, 2017, thus subject to RCM. The second and third respondents concurred with this interpretation, affirming that the business entity must pay GST on these fees under RCM.