Whether RCM is applicable on Tollgate fee?

[gvenugopal g]

Dear Experts,

Kindly advice whether RCM is applicable on 'Highways Tolgate Fee' paid in advance through online-banking to 'FASTAG'

[Ganeshan Kalyani]

Notification no 12/2017-CTR provides the list of exempted service. In that Sr. No.23 states as " 9967 Service by way of access to a road or a bridge on payment of toll charges."

In view of the above entry, GST is exempt on Highway Tollgate fee.

[rajkumar shukla]

Apart from what has been said above , I would like to add that toll charges are still under state list hence not taxable.

[KASTURI SETHI]

Also see the following decision of AAR, Uttarakhand: (Para 5.1 (a) and 6

2018 (18) G.S.T.L. 641 (A.A.R. - GST) = 2018 (10) TMI 346 - AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND IN RE : PUREWAL STONE CRUSHER

AI Summary

GST exemption on toll charges means reverse charge mechanism does not apply to prepaid highway toll payments. Notification No. 12/2017-CTR exempts services providing access to a road or bridge on payment of toll charges, covering highway tollegate fees (including prepaid FASTag payments); therefore GST does not apply to such toll receipts and the reverse charge mechanism is not attracted for those toll services.