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

Government registration and safety certification services are exempt from GST, so not taxable under reverse charge.
Services by Central, State, Union territory or local authorities for registration required by law and for testing, safety checks or certification related to protection or safety (including renewals) are exempt and nil-rated; such exempt government-provided services are not taxable under forward charge nor subject to reverse charge. Identical services provided by non-governmental bodies are taxable and may attract RCM where applicable.