GOVT FEES PAID is exempt or non gst, Goods and Services Tax - GST

[manoj agrawal]

Govt fees paid on agri commodity like regulated market commitee fee which is like 1 % of value of agri commodity . such agri marketing commitee are under state Govt . it is inward supply . where to show such inward supply in GSTR 3B As this is realting to payment made to state Govt .

Posts / Replies

[KASTURI SETHI]

Column 2 of GSTR 3B is meant for taxable. The value on which tax is to be paid. In my view, in the situation explained by you, it is neither supply of goods nor supply of service. It is a statutory function and hence out of purview of GST. This is my view.

[PAWAN KUMAR]

Dear Sir,

As per my view, it is cover under RCM Inward supply and GST is payable on such inward supply under RCM. Please note if the gross amount of such service is ₹ 5000/-, No GST is payable.

In GSTR-3B you have to show these as Inward supply RCM-table 3.1 (d).

[Rajagopalan Ranganathan]

Sir,

Fee is different from consideration. Fee is an amount collected by an Act of parliament or State Legislature whereas consideration is an amount mutually agrred upon by the supplier and receiver of goods or services or both. Hence I go with the views expressed by Shri. kasturi Sir.

[DR.MARIAPPAN GOVINDARAJAN]

Shri Renganathan optly explained.

[CASusheel Gupta]

Services supplied by government have been exempted vide entry no. 6 (onwards) of Notification number 12/2017 except (d) - any service provided to business entity.. As such the govt fees paid on agri commodity is taxable. .

As per entry number 5 of notification number 13/2017 the services to business entities by government are subject to RCM under section 9(3)

[KASTURI SETHI]

Dear Sir, Interesting discussion. The crucial point is "Whether "Fee" charged is on account of "Supply Of Service" ? Does the activity conform to the definition of 'Service' ? Whether "Fee" can be termed as consideration ? There is a world of difference between "Fee" and "Consideration". Activity must qualify "Service and Consideration" before talking of leviability of GST. Where is service ? Where is consideration ?7

[Pavan Mahulkar]

Sir,

As per services rate booklet available on CBIC website

Entry No. 57

(g) services by any Agricultural Produce Marketing Committee or Board or services provided by a
commission agent for sale or purchase of agricultural produce.

Are Nil rated

[KASTURI SETHI]

Here Marketing Committee or Board or Commission Agent has not received consideration for providing service but has paid Fee to State Govt. Fee is sort of tax. (statutory status). One has to go stage-wise:-

1. Supply

2.Consideration

3. Leviability of GST

4. Exemption.

The question of 'exemption' arises only after crossing first three stages. It is very important to know on what account State Govt. charges 'Fee' of 1% on the value of sale or purchase agricultural produce and who has received service and who has provided service.

[manoj agrawal]

Good Morning

Pawan Sir View regarding this is Nil rated I agree to it . As Regulated Market committee is a committee or Board created by state Govt for regulation of buy and sale of agri produce so it falls perfectly Under Entry nno 57 Services by any Agricultural prodice Marketing commitee or Board or services by A commisiion agent for sale or purchase of agricultural produce .

[PAWAN KUMAR]

Agreed sir. It is under exemption as services provided by agriculture marketing committee is exempt. Fee paid and gst on it not payable under RCM