GST ON LICENSE FEES TO GOVERNMENT BODIES

[gvenugopal g]

Dear Experts,

Kindly let us know whether GST is applicable under RCM for the following fees/expenses spent by a corporate entity involved in manufacturing fmcg.

1) Fees paid for Industry, safety and Health and factory License.

2) Controller of Explosive for license (Petrolium and Explossive Safety Organisation)

3) Fees paid to Pollution control board for license/renewal fees

4) Fees paid to FSSAI for license/renewal fees.

5) Fees paid to Halal Certification Bodies for Halal Certificate

6) Fees for trade license under Shop and Establishment Act.

AI Summary

GST Reverse Charge Mechanism: Exemptions for FSSAI Certification and Government Fees Below Threshold in FMCG Sector A corporate entity in the FMCG sector inquired about the applicability of GST under the Reverse Charge Mechanism (RCM) for various license fees paid to government bodies, including industry, safety, health, pollution control, and certification bodies. The discussion revealed that fees for FSSAI certification and government services below a certain threshold are exempt from GST. It was clarified that registration and renewal fees are considered integrally linked, thus both are exempt. Services provided by government authorities for registration, testing, or safety checks are exempt, while others may be taxable. Participants sought examples of non-governmental registration authorities.