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Rules for parking fee collection

Supreetha (Accounting Consultant) (32 Points)

30 January 2019

I am a accountant in a municipality(Urban Local Body) at Karnataka state. in our ULB we called a bid for parking fee collection for 2019-20.final bid amount is Rs.75,50,000/-. this amount is applicable for GST? or other taxes??..how much percentage we need to collect?? please clarify me

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Aashish Bansal (Article) (698 Points)
Replied 30 January 2019

I think it is liable to GST...

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jyoti bhagchandani (fresher) (595 Points)
Replied 30 January 2019

It is informed that under the GST law, “Parking Lot Services” fall under HSN Code No.996743 and liable to GST at18% on the parking charges paid

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 30 January 2019

As per Notification 12/2017 CT (r): Under S.no.4:
Services by Central Government, State
Government, Union territory, local
authority or governmental authority by
way of any activity in relation to any
function entrusted to a municipality under
article 243 W of the Constitution Is Nil Rated
And
Parking Services are cover under Article 243 W Hence its exempted

Salamat Shidvankar (10 Points)
Replied 04 March 2019

Hello.. your answer contradict other answers. Can you explain in detail.. in following case. A is a company registered under GST is in contract with municipal corporation for operations of pay and park i.e. collecting parking fees from general public as per tariff given by municipal corporation and pay rent or license fees to municipal corporation. In this there are two transactions one between Company A and general public and between Company A and municipal corporation. Municipal corporation is demanding gst for license fees saying its rental income and when it comes to general public how it should be framed. Pls explain. Thanks

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