Gst on parking fee collection

Sir i will give my views on this issue. it is quite debatable issue also.

Matters listed in twelfth schedule are:

Urban planning including town planning.

Regulation of land-use and construction of buildings.

Planning for economic and social development.

Roads and bridges.

Water supply for domestic, industrial and commercial purposes.

Public health, sanitation conservancy and solid waste management.

Fire services.

Urban forestry, protection of the environment and promotion of ecological aspects.

Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.

Slum improvement and upgradation.

Urban poverty alleviation.

Provision of urban amenities and facilities such as parks, gardens, playgrounds.

Promotion of cultural, educational and aesthetic aspects.

Burials and burial grounds; cremations, cremation grounds; and electric crematoriums.

Cattle pounds; prevention of cruelty to animals.

Vital statistics including registration of births and deaths.

Public amenities including street lighting, parking lots, bus stops and public conveniences.

Regulation of slaughter houses and tanneries.

There is no doubt parking lots are covered under Article 234W of Constitution.

Analysing each transaction - transaction between A and general public is not covered under exemption and hence taxable under SAC 996743 @ 18%

transaction between A and government - As per Notification 12/2017 CT (r): Under S.no.4: Services by Central Government, State Government, Union territory, local authority or governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution Is exempt. Here service is provided by municipality to company A and hence it would be exempted.

To present a more accurate view the documents and contacts between govt and company A etc has to be verified to understand the structure of transaction.

yes definately its exempted under notification 12/2017 CT (R) .

But as the query sounds that the MC has contract of Rental /Liecenc fee for Immovable property with Company A
In such situation Company is Paying rent for Immovable property , hence As per Notification 3/2018 CT (r) , Recepient (Company A) is liable do RCM on same .

And in this context the further supply of parking services to Ultimate cuatomer would be taxable .

So in my point of view , the whole scenerio depend upon the contract with MC