07 July 2024
Yes, gate entry fee contracts for collection are liable for GST. Here are the details you need:
### GST Applicability
Gate entry fees charged by APMC (Agricultural Produce Market Committee) and local bodies are considered as a supply of services under GST. Therefore, GST is applicable on these fees.
### Rate of GST
The applicable rate of GST depends on the nature of the services provided. Generally, for services provided by government or local authorities to business entities or individuals, the rate is as follows:
- **18% GST**: This is the standard rate applicable to most services provided by government authorities.
### HSN Code
The HSN (Harmonized System of Nomenclature) code for gate entry fee services provided by APMC or local bodies typically falls under the following category:
This HSN code covers a wide range of services not specifically classified elsewhere in the GST system.
### Example of Invoice
When invoicing for gate entry fees subject to GST, ensure the invoice includes the following details:
1. **Name and Address**: Name, address, and GSTIN of the APMC or local body. 2. **Invoice Number and Date**: Unique invoice number and date of issue. 3. **Recipient's Details**: Name, address, and GSTIN (if applicable) of the recipient. 4. **Description of Service**: "Gate Entry Fee for Collection Services" or similar description. 5. **Amount and GST Details**: Breakdown of the fee charged and applicable GST (18%). **HSN Code**: HSN code 9997.
Ensure compliance with GST regulations regarding invoice issuance, filing of returns, and payment of GST collected to the government. If there are specific local variations or notifications regarding rates or exemptions, those should also be considered.
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