Applicability of RCM on Government Services

[Ramanathan Seshan]

Dear Experts,

I’m looking for clarity on the applicability of the Reverse Charge Mechanism (RCM) under GST for certain services provided by the government. Specifically, does RCM apply to:

1. Factory license issuance and renewal

2. FSSAI license issuance and renewal

3. Other regulatory licenses provided by government departments

Requesting esteemed members to share practical experience, or official references regarding this.

Regards,

S Ram

AI Summary

Government Service License Fees Exempt from Reverse Charge Mechanism Under Specific GST Notification Conditions A discussion forum explores the Reverse Charge Mechanism (RCM) applicability for government services like factory and FSSAI licenses. Participants analyze GST exemptions under Notifications 12/2017 and 13/2017, concluding that regulatory license fees are generally exempt from RCM when they are statutory services or registration-related, with specific conditions determining tax treatment for government-issued licenses and approvals.