whether gst on mandi tax in up is leviable or not

[FARIDUDDIN AHMAD]

my question is whether rcm on mandi tax is leviable on purchase of wood from unregistered dealers

exp-purchase value of wood is 100/-

mandi tax is 2.50/-

on what amount rcm is leviable

[Amit Agrawal]

One needs to know more about applicable act / rules / notification etc. about said 'mandi tax' before answering the question raised.

Furthermore, from your query, I am not sure about subject serial number with notification you are pointing at? Can you please clarity this? In other words, are you referring to potential GST liability under RCM against 'mandi tax' (i.e. as a service recipient) or potential GST liability under RCM against against 'mandi tax' as part of value of goods purchased (i.e. as a goods recipient)? And please quote subject serial number with notification you are pointing at, for the query raised.

[FARIDUDDIN AHMAD]

applicability of act is GST act 2017. sir my question is RCM is payable on mandi tax in UPSGST. Kindly give if there is any notification

[Shilpi Jain]

Mandi tax is paid to the Govt. It is a settled principle that there is no service involved in taxes paid. It is extracted by the Govt. based on certain provisions.

If it is a fee there could be an element of service.

So no GST on mandi tax.

However this is given basis the limited facts available and is a prima facie view basis the principle stated above

[KASTURI SETHI]

Dear Querist,

Have you received any letter or notice from the department ?

Is it fee or tax ? If it is fee it is taxable under CGST/SGST. In this context, read Notification no.13/2017-CT(R) dated 28.6.17 (Serial No.5) and Notification No.12/17-CT(R) dated 28.6.17 as amended.

[Ganeshan Kalyani]

Sec. 15(2) The value of supply shall include–––

(a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier;

[KASTURI SETHI]

Such fee or tax is in the course of business or furtherance of business. Hence no exemption from payment of GST under RCM. Market fee is leviable even under GST regime.

IMARTI LAKDI VYAPARI SANSTHAN JODHPUR Versus STATE OF RAJASTHAN - 2018 (11) TMI 212 - RAJASTHAN HIGH COURT

[Amit Agrawal]

This is in continuation of my post at serial no. 1.

Following questions also worth examination, before one answer the query raised:

A. Whether any services are provided / supplied against 'mandi tax'?

B. If service are indeed provided, whether they are provided by Services supplied by the Central Government, State Government, Union territory or local authority?

C. If service are indeed provided, whether they are exempted from GST under Notification No. 14/2017-Central Tax (Rate), read with Notification No. 16/2018-Central Tax (Rate)?

Hence, I feel that one needs to know more about applicable act / rules / notification etc. about said 'mandi tax' before answering the question raised.

[Amit Agrawal]

Please read Para C from above post as follows: C. If service are indeed provided, whether they be treated neither as a supply of goods nor a supply of service under Notification No. 14/2017-Central Tax (Rate), read with Notification No. 16/2018-Central Tax (Rate)?

AI Summary

Debate on GST Applicability on Mandi Tax Under RCM for Wood Purchases from Unregistered Dealers in Uttar Pradesh A discussion on a forum addresses whether the Goods and Services Tax (GST) is applicable on mandi tax in Uttar Pradesh, specifically under the Reverse Charge Mechanism (RCM) when purchasing wood from unregistered dealers. Participants debate if mandi tax, being a government levy, involves any service, which would determine its GST applicability. Some argue that mandi tax is not a service and thus not subject to GST, while others suggest it could be taxable if classified as a fee. References to various notifications and legal provisions are made to clarify the issue.