BMC Associates says Replied on 4th July,2026 09:48 AM

No, factory licence fees paid to a State Industrial Development Corporation are not automatically liable to GST under the Reverse Charge Mechanism (RCM). The applicability of RCM depends on the nature of the service and the legal status of the service provider. If the licence fee is collected by a State Government, Union Territory, or Local Authority for services notified under GST, RCM may apply under Notification No. 13/2017 – Central Tax (Rate), as amended. However, a State Industrial Development Corporation is generally a separate statutory body or government-owned corporation and is not treated as the State Government or a Local Authority solely because it is government-owned. Therefore, RCM would apply only if a specific GST notification covers the corporation or the particular service. For correct GST treatment, it is important to examine the legal status of the corporation and the nature of the licence fee. For expert guidance on GST, reverse charge provisions, and regulatory compliance, businesses often rely on experienced chartered accountant firms in gurgaon. A qualified chartered accountant gurgaon, trusted ca firm in gurgaon, or professional ca in gurgaon can help determine the correct GST implications for such transactions.