Applicability of RCM on ROC Fees and DGFT Fees

[Bhavesh Suthar]

We are a private limited company with turnover of more than 500 Crs. We have applied for TRQ license and paid DGFT fees of Rs. 1 lakh for the application of this license which is renewed every year. Wil the DGFT fees be liable to GST under RCM. Currently, we are discharging GST on ROC fees under RCM. Also what is the difference between Sl. no. 6 & 9 of Notification 12/2017 dated 28.06.2017.

AI Summary

DGFT fees above Rs 5000 attract GST under Reverse Charge Mechanism for business entities seeking TRQ license renewal A private limited company with 500+ crore turnover queries GST applicability under Reverse Charge Mechanism (RCM) on DGFT fees of Rs. 1 lakh for TRQ license renewal and differences between notification entries. Experts confirm DGFT fees attract GST under RCM as services from government department to business entity under serial 5 of Notification 13/17. The company should pay RCM and claim input tax credit. Entry 6 exempts government services for non-business entities while entry 9 exempts services below Rs. 5000 with continuous supply provision, both excluding postal, railway, aircraft/vessel and transport services.