Reverse charges -regarding
This query is : Resolved
21 September 2018
Dear Sir
1. We have paid Monthly Sewage and water charges to Municipal corporation.
2. Secondly we have paid Property Tax for the year 2018-19 on 20.09.2018.
The above said charges paid to Govt Department under GST reverse charges paid or not
1. We have paid Monthly Sewage and water charges to Municipal corporation.
2. Secondly we have paid Property Tax for the year 2018-19 on 20.09.2018.
The above said charges paid to Govt Department under GST reverse charges paid or not
21 September 2018
No
You need not to pay GST under reverse Charges .
RCM applicable on notified goods & sevices under Sec 9(3) of the Act
You need not to pay GST under reverse Charges .
RCM applicable on notified goods & sevices under Sec 9(3) of the Act
21 September 2018
our query municipal corporation Govt department or not and paid fee taxable or not
22 July 2025
Here's a clear explanation regarding your query on GST reverse charge applicability for municipal charges:
1. Are Municipal Corporation charges (Sewage, Water, Property Tax) subject to GST reverse charge?
Municipal Corporation is a Government or local authority, but not all fees or charges paid to them attract GST.
Property Tax and Municipal Fees (like water/sewage charges) are generally not subject to GST because they are levied under a statute and considered taxes or cesses rather than services.
Hence, these payments do NOT attract GST, and no reverse charge applies on these charges.
2. Is the Municipal Corporation a Government Department?
Yes, municipal corporations are government/local authorities.
But this alone does not mean GST applies on all their charges.
Only specific services supplied by government or local authorities which are not in the negative list and notified under GST law are taxable.
3. Reverse Charge applicability under Section 9(3) of CGST Act:
RCM applies only to notified goods and services from unregistered suppliers.
Sewage charges, water charges, and property tax are not notified services under RCM.
Therefore, no GST under reverse charge on these municipal charges.
Summary:
Payment GST Applicable Reverse Charge Applicable? Remarks
Sewage Charges to Municipality No No Treated as tax/cess, not service
Water Charges to Municipality No No Same as above
Property Tax No No Property tax is a statutory tax, no GST
So, you are correct that you do NOT have to pay GST under reverse charge on sewage, water, or property tax paid to Municipal Corporation.
1. Are Municipal Corporation charges (Sewage, Water, Property Tax) subject to GST reverse charge?
Municipal Corporation is a Government or local authority, but not all fees or charges paid to them attract GST.
Property Tax and Municipal Fees (like water/sewage charges) are generally not subject to GST because they are levied under a statute and considered taxes or cesses rather than services.
Hence, these payments do NOT attract GST, and no reverse charge applies on these charges.
2. Is the Municipal Corporation a Government Department?
Yes, municipal corporations are government/local authorities.
But this alone does not mean GST applies on all their charges.
Only specific services supplied by government or local authorities which are not in the negative list and notified under GST law are taxable.
3. Reverse Charge applicability under Section 9(3) of CGST Act:
RCM applies only to notified goods and services from unregistered suppliers.
Sewage charges, water charges, and property tax are not notified services under RCM.
Therefore, no GST under reverse charge on these municipal charges.
Summary:
Payment GST Applicable Reverse Charge Applicable? Remarks
Sewage Charges to Municipality No No Treated as tax/cess, not service
Water Charges to Municipality No No Same as above
Property Tax No No Property tax is a statutory tax, no GST
So, you are correct that you do NOT have to pay GST under reverse charge on sewage, water, or property tax paid to Municipal Corporation.
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