80:20 Rule calculation for building permit fees

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....0:20 Rule calculation for building permit fees<br> Query (Issue) Started By: - NUKALA KUMAR Dated:- 29-5-2025 Last Reply Date:- 31-5-2025 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>With respect to Notification No. 3/2019-Central Tax (Rate) dated 29th March 2019 whether permission fees paid to a competent authority are included in the shortfall calculation for the 80:20 rule under the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....GST ?? Reply By Sadanand Bulbule: The Reply: &nbsp;Plz refer Issue Id: -&nbsp;118325&nbsp;Dated:&nbsp;14-01-2023 for more details. Reply By Sadanand Bulbule: The Reply: &nbsp;Also refer Issue Id: -&nbsp;119125&nbsp;Dated:&nbsp;24-05-2024 Reply By YAGAY andSUN: The Reply: As per Notification No. 3/2019-Central Tax (Rate) dated 29th March 2019, the 80:20 rule mandates that at least 80% of the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....value of input goods and services must be procured from registered suppliers in order to avail the concessional rate. However, permission fees paid to competent authorities such as municipal bodies or government departments are statutory in nature and are not considered as supply under GST. Therefore, such fees do not fall within the scope of inputs or input services for the purpose of calculating....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the 80% threshold. In line with CBIC Circular No. 122/41/2019-GST dated 30th October 2019, statutory payments like permit fees, RTO fees, or license fees are explicitly excluded from the input value calculations. Consequently, permission fees paid to a competent authority are not included in the shortfall calculation under the 80:20 rule specified in the notification. Reply By Shilpi Jain: The ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Reply: Pls chk if this permit fees is an exempt service whereby it should not be included in the 80:20 calculation.<br> Discussion Forum - Knowledge Sharing ....