GST on stamp paper and notary charges

[Kaustubh Karandikar]

Is GST required to be paid under reverse charge on amount paid towards ‘Stamp Paper and Notary charges’ under the head services provided by Govt.? In my view not required. Experts views please.

[Shilpi Jain]

Not liable on stamp duty... it is in the nature of tax... no service involved...

Notary is it in the nature of pure agent charges?

[Kaustubh Karandikar]

Yes shilpi ji, it is in the nature of pure reimbursement without any mark up

[KASTURI SETHI]

Stamp duty is a tax. Notary is a service

Section 15(2)(a) of the CGST Act talks about the inclusion of any taxes, duties, cesses, fees and charges levied under any other law (other than GST) in the assessable value while discharging the GST liability. From the language of Section 15(1)(a) of CGST Act, it is manifestly clear that stamp duty is required to be taxed under GST.

The liability of stamp duty and notary services charges lies on the buyer. Whether the benefit of 'pure agent' is admissible or not ? That is required to be examined as per parameters laid down under Rule 33 of CGST Rules, 2017 ? Docs to be examined for this purpose.

AI Summary

GST treatment of stamp duty and notary charges: stamp duty is tax, notary a service; assessability and pure agent tests
Whether GST applies under reverse charge on stamp paper and notary charges turns on classification: stamp duty is described as a tax (not a service) while notary fees are a service. Assessable value rules require inclusion of taxes and charges for GST valuation. Liability is asserted to lie with the recipient, and entitlement to pure agent treatment for reimbursements must be tested against documentary criteria under the rules.