Applicability of GST in case of Rehabilitation and Resettlement amount paid to State Governmetn

[THDC India]

Whether GST is payable on amount paid against Rehabilitation and Resettlement under RFCTLARR to District collector. It is to state that that District collector is administrator and finally amount would be paid to affected family.

AI Summary

GST Applicability on Rehabilitation Payments under RFCTLARR Act Questioned; Exemption Possible for Land Acquisition Payments A discussion on the applicability of GST to amounts paid for Rehabilitation and Resettlement under the RFCTLARR Act to the District Collector, who administers the payment to affected families, was initiated by a company. Respondents noted the query's brevity and lack of context, suggesting a detailed examination of the relevant Act and regulations. They highlighted considerations such as whether the service provider is a government entity and if the payment is for land acquisition, which may exempt it from GST. The company clarified that the Ministry of Coal allocated land for mining, necessitating resettlement, and sought clarity on the supplier's identity and the nature of the transaction.