Companies dragged government to court over GST on license fees

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A group of small companies took government to court over tax on license and spectrum fees. These companies have filed a writ petition in the Goa bench of the Mumbai High Court and are challenging that the government cannot charge GST for doing their duty. The writ petition challenges license fees charged to telecom, mining companies and casinos.

A circular has been issued earlier by the government which provides for levying GST on license fees received by the government. The companies are challenging the premise that government can levy tax on such license fees.

Government in October last year had issued a circular around GST on license fee charged by states for granting liquor license to vendors. The companies says that as there is no difference between exemption granted to alcoholic liquor license fees and other license fees paid to the government, the circular will have to clear the test of Article 14 which constitution refers to right to equality. 

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