Entry 5 of s.9(3) of CGST act says that services provided by government agencies to business entities is taxed under reverse charges, to which renting of immovable property is under exception. That means it has to be taxed under forward charge.
Entry 5A of s.9(3) says that services of government agencies to any person ( for renting of immovable property ) are to be taxed under reverse charge.
But, here it is not given that any person excludes business entity.
Which gives an opinion that services of government agencies to business entities are taxed under reverse charge.
These interpretations are contradicting.
However, in gst every registered person is a business entity.
How is business entity different from any person.
What is the correct interpretation of entry 5 and 5a
As per S.no. 5 under Notification 13/2017 CT (R) , It's Govt supply of Services EXLUDING ; Services of renting of Immovable Property & this services being inserted under clause 5a of Notification 3/2018 CT (r) .
RCM Applicability:
Under Clause 5 , Receptient shall be all such entities engaged in business activities whether registered in GST or not .
Under Clause 5a , Receptient shall be registered under GST
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