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.

[Himansu Sekhar]

Fssai certification is exempt .

Govt. Services less than 5000 are exempt.

[Himansu Sekhar]

Code 9983 or 9991 regn. Required under any law are exempt.

[Himansu Sekhar]

The above reply is for forward services. For RCM it appears no exemption is provided

[Himansu Sekhar]

I amend by above view. As per the sl.no.47 notf. 12/17, these charges are exempt and attract nil rate. Under rcm also not taxable. The rate will not change for forward ir reverse charge. Sorry for the inconvenience caused due to the above answers.

[Atul Rathod]

I am not sure on whether renewal charges are exempted. because exempted is only registration fees. once renewal charges are paid its no more can be called as registration fees.

[Himansu Sekhar]

If registration charges are exempted, renewal charges will be also exempted

[KASTURI SETHI]

I agree with Sh.Himansu Sekhar Ji. Renewal charges are not independent of original registration fee. These are integrally attached with original registration fee. Renewal is an extension of original registration. Hence we can say that there is no difference between both.

[Himansu Sekhar]

Thank you sir

[Rajendra Prasad]

Heading 9983 or Heading 9991

Services provided by the Central Government, State Government, Union territory or local authority by way of-

(a) registration required under any law for the time being in force;

(b) testing, calibration, safety check or certification relating to protection or safety of workers, consumers or public at large, including fire license, required under any law for the time being in force.

As long as the Registration Authority is Central Government, State Government, Union territory or local authority it is exempt.

Others Taxable .

Can any one give me examples of Registration Authority other than CG , SG , UG , Local Authority.

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.