Cir.No.121/40/19 GST dt.11.10.19. Services proved by the Government to business entities including by way of grant of privileges, licences, mining rights, natural resources such as spectrum etc. against payment of consideration in the form of fee, royalty etc. aretaxable under GST. Same was the position under Service Taxregime also with effect from 1stApril, 2016.Tax is required to be paid by the business entities on such services under reverse charge. GST Council in its26thmeeting held on 10.03.2018, recommended that GST was not leviable on license fee and application fee, by whatever name it is called, payable for alcoholic liquor for human consumption and that this would apply mutatis mutandis to the demand raised by Service Tax/Excise authorities on license fee for alcoholic liquor for human consumption in the pre-GST era, i.e. for the period from 01-04-2016 to 30-06-2017. Further clarified that this special dispensation applies only to supply of service by way of grant ofliquor licenses by the State Governments as an agreement between the Centre and States and has no applicability or precedence value in relation to grant of other licenses and privileges for a fee in other situations,where GST is payable

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