Registered dealer has paid Rs.5,00,000 as annual licence fee to Pollution Control Board. Whether he will be liable to pay GST on it under RCM?

Reply—As per serial no. 5 of Notification No. 13/2017-CTR, recipient is liable to pay RCM under section 9(3) of the CGST Act for services supplied by by the Central Government, State Government, Union territory or local authority to a business entity. 

Since, licence fee paid to pollution control board is not an exempt service, it will be taxable.