is applicable fee paid for Shop and establishment Renewal, Goods and Services Tax - GST

[ARULJULIUS T]

I am working in Kerala

Services by Government and Local Bodies attract GST on RCM basis to business entity. Is GST applicable on Shops and Establishment renewal fees or ammendment fees etc.

Posts / Replies

[Alkesh Jani]

Sir,

In this regards, Notification No.14/2017 - CT (Rate) dated 28.06.2017, amended vide Notification No. 16/2018-CT (Rate) dated 26.07.2018, underwhich "Services by way of any activity in relation to a function entrusted to a Panchayat under article 243G of the Constitution or to a Municipality under article 243W of the Constitution"

Based on above, I am of the view that fees collected by local bodies are neither supply of goods nor supply of services, hence GST not applicable.

Our experts may like to correct me if mistaken,

Thanks,

With Regards,