RCM on trade license

2903 views 1 replies
Dear Experts,

Can u explain whether RCM is applicable on trade license renewal fee
Replies (1)
Quick Summary
Query: whether RCM applies on trade license renewal fee under GST. Answer: trade license renewal fees paid to local authorities (municipalities/corporations) are exempt from GST, so RCM is not applicable. Always verify latest GST notifications for updates.

RCM (Reverse Charge Mechanism) is a tax mechanism under the Goods and Services Tax (GST) law in India. Trade License Renewal Fee and RCM Trade license renewal fees are typically paid by businesses to local authorities, such as municipalities or corporations. *RCM Applicability* As per the GST Council's decisions and the Central Goods and Services Tax Act, 2017: 1. *Notification No. 13/2017-Central Tax (Rate)*: Exempts services provided by the Central Government, State Government, Union territory, or local authorities from GST, except for certain specified services. 2. *Notification No. 22/2017-Central Tax (Rate)*: Specifies that services provided by local authorities, such as trade license renewal fees, are exempt from GST. Conclusion Based on the above notifications and GST laws, RCM is *not applicable* on trade license renewal fees, as these services are exempt from GST. However, it's essential to note that: - *Specific Notifications*: There might be specific notifications or amendments to the GST laws that could affect the applicability of RCM on trade license renewal fees. - *Consult a Tax Professional*: To ensure accuracy and compliance, it's recommended to consult a tax professional or GST expert who can provide guidance based on the latest laws and regulations.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details