RCM on Infrastructure charges paid to BMC

[vishwanath shetty]

Hello Experts, 

I would like to known the following, 

one of our client is involved in construction of residential and commercial buildings, 

They have paid Infrastructure charges and  Maharashtra Regional and Town Planning Development charges to BMC for constructing building for SRA project.

Are the liable to pay RCM on these charges, as Tax is to be paid in RCM for services received by government.

Please Advice 

AI Summary

Infrastructure and Development Charges for SRA Projects May Be GST-Exempt Under Article 243W and RCM Rules A client involved in construction paid infrastructure and development charges to a municipal corporation for an SRA project and inquired about liability to pay GST under reverse charge mechanism (RCM). The responses clarified that if these charges are for permissions, they are exempt from GST. Although the municipal corporation is a government entity, exemption for government entities was withdrawn from January 2022. However, certain activities under Article 243W of the Constitution, related to local authorities, are neither goods nor services and thus outside GST scope, supported by relevant notifications. Therefore, the charges may not attract GST under RCM if they fall under these exempted activities.