Reinstatement and Access charges paid to Municipal Authorities liable to GST: AAR Mumbai [Read Order]

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The Authority for Advance Ruling (AAR) Mumbai March 21st, ruled that reinstatement charges and access charges paid to municipal authorities would be liable to GST.

The Applicant, M/s Reliance Infrastructure Limited, is engaged in the business of generation, transmission and distribution of electricity. The applicant raised query regarding applicability of GST in reinstatement charges and access charges paid to Municipal Authorities.

The Authority Consisting B.V. Borhade and Pankaj Kumar answered affirmative to the queries with providing clarity to the former query by mentioning the applicability of GST at 18% [ 9% each of CGST and SGST] under the residuary entry no.35 of the notification No. 11/2017-Central/Stat Tax (Rate) covering “service nowhere else classified” . The Latter query however was left unanswered by the authority due to non-availability of details and documents.

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