2024 (11) TMI 102 - HC - GST

Levy of GST under the reverse charge mechanism on the seigniorage paid by the petitioner to the Government - HELD THAT - Reliance placed in the case of TVL. A. VENKATACHALAM VERSUS THE ASSISTANT COMMISSIONER (ST) 2024 (2) TMI 488 - MADRAS HIGH COURT where it was held that ' It is made clear that there shall be no recovery of GST on royalty until the Nine Judge Constitution Bench takes a decision.' In view of the above judgment, this writ petition is liable to be disposed of on the same terms.

Summary

The petitioner challenged a show cause notice under the Tamil Nadu Goods and Services Tax Act regarding GST on seigniorage paid to the Government. The court referred to a recent judgment and directed the petitioner to submit objections within four weeks. Adjudication will be on hold until a Nine Judge Constitution Bench decides on royalty issues. No GST recovery on royalty until the decision. The writ petition was disposed of accordingly.