Page 32 - GSTL_27th August 2020_Vol 39_Part 4

J88 GST LAW TIMES [ Vol. 39
other than the Central Government, State Government, Union terri-
tory;
(b) services in relation to an aircraft or a vessel, inside or outside the
precincts of a port or an airport;
(c) transport of goods or passengers; or
(d) any service, other than services covered under entries (a) to (c)
above, provided to business entities.
According to clause 2(n) of the notification, “business entity” means any person
carrying out business. Therefore, a view can be taken that any fee paid to ROC by
Section 8 companies which do not carrying on any business, shall be exempt vide
S. No. 6 ibid.
Serial No. 7 of the Notification provides exemption to services provided
by the Central Government, State Government, Union territory or local authority
to a business entity with an aggregate turnover of up to ` 20 lakhs (` 10 lakhs in
case of a special category State) in the preceding financial year.
Therefore, where the turnover of a company or LLP does not exceed ` 20
lakhs (` 10 lakhs in case of a special category State) in the preceding financial
year, then any fee paid to ROC shall be exempt vide S. No. 7 ibid.
Serial No. 9 of the notification provides exemption to services provided
by Central Government, State Government, Union territory or a local authority
where the consideration for such services does not exceed ` 5,000/-. Therefore,
where ROC filing fee paid by company/LLP is less than ` 5,000/- the same shall
be exempt.
Further, the service provided by Central Government, State Government,
Union territory or a local authority by way of registration required under any
law for the time being in force is exempt under Serial No. 47 of the aforesaid noti-
fication. Any fee paid by a company or LLP on registration will be exempt as per
S. No. 47 since the fee is for the registration under the respective enactments.
Any fees paid to ROC by companies/LLPs for any filing other than those
specifically exempted vide notification (supra), shall be taxable under RCM un-
der Section 9(3).
Conclusion
It is ironical that in a democratic country like ours, where Government is
of the people, tax is being levied on statutory/sovereign functions performed by
Government to its people. It is three years since the inception of GST and notifi-
cation under Section 7(2)(b) exempting activities or transactions performed by
Centre or State Government or local authorities in which they are engaged as
public authorities is yet to be issued.
The duties and function performed by Registrar of Companies is man-
dated under the Companies Act, 2013 and cannot be substituted by any private
person, it is a statutory/sovereign function of the Government. The author is the
opinion that the functions performed by ROC, being sovereign function of the
Government, should not be subjected to GST at all. However this contentions
will have to be tested before the Courts.
Until the Government or the Court steps in, it will be practical for the
companies to pay GST under Reverse Charge and avail the ITC.
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