Levy of GST— In the present case, applicant is seeking an Advance Ruling in respect of the following question

“Whether GST payable on collection of Sopo or not”.

Applicant charges “Sopo” from vendors for occupation of space (both open and covered) in the Municipal Market area. “Sopo” is kind of nominal fees collected from floating hawkers and small merchant on a daily basis for use of vacant land/space. The practice of collection of “Sopo” is an age-old going on even before liberation of Goa. The collection of “Sopo” doesn’t amount to “Renting of immovable property”.

The issue is whether making available a space, both open and covered within the area of the Municipal Market to vendors, hawkers and small merchants is covered in “Services by way of any activity in relation to a function entrusted to a Panchayat under article 243G of the Constitution or to a Municipality under article 243W of the Constitution”

The applicant here is Municipality and as such cannot be said to be providing services by way of an activity in relation to a function entrusted to a Municipality under Article 243W of the Constitution. 

Held that— GST is payable on collection of Sopo from 1 July, 2017.