TaxTMI 
TaxTMI 
Sir, my query is whether RCM required to be paid on permit fees paid to State Govt. for ethanol sale. Amount for permit fees is ₹ 50 lakhs.
RCM applicability permit fees paid to State Govt.
10 Sep 2021 
7 Replies 
13711 Views Asked by
Reverse charge on government permit fees: recipient liable for GST on permit to sell ethanol unless fee is a non-supply.
Circular 121/40/2019-GST treats government charges for privileges, licences or rights as taxable services with GST payable by the recipient under reverse charge. The grant of an ethanol-sale permit is prima facie a taxable service and not within Notification No. 13/2017-CT(R) exclusions; however, a counter-argument exists that purely statutory fees with no service may not constitute a supply and thus may not attract reverse charge. (AI Summary)
Circular 121/40/2019-GST treats government charges for privileges, licences or rights as taxable services with GST payable by the recipient under reverse charge. The grant of an ethanol-sale permit is prima facie a taxable service and not within Notification No. 13/2017-CT(R) exclusions; however, a counter-argument exists that purely statutory fees with no service may not constitute a supply and thus may not attract reverse charge. (AI Summary)