TaxTMI 
TaxTMI 
WHETHER RCM is applicable on LAND DIVERSION FEE PAID TO GOVERNMENT BY THE BUSINESS ENTITY Under Section 9(3) of CGST Act ?
Regarding RCM
17 Oct 2018 
3 Replies 
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Reverse charge mechanism applies: land diversion fees paid to government attract GST on government-to-business services.
A land diversion fee paid by a business entity to the government constitutes a fee for agreeing to tolerate or to do an act under Schedule II and therefore qualifies as a government-supplied service to a business entity; GST on such service is payable by the recipient under the reverse charge mechanism. (AI Summary)
A land diversion fee paid by a business entity to the government constitutes a fee for agreeing to tolerate or to do an act under Schedule II and therefore qualifies as a government-supplied service to a business entity; GST on such service is payable by the recipient under the reverse charge mechanism. (AI Summary)