2024 (11) TMI 509 - HC - GST

Levy of GST under the reverse charge mechanism on the seigniorage paid by the petitioner to the Government - HELD THAT - The recent judgment of the Division Bench of this Court in a batch of writ petitions, 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 petition is liable to be disposed of on the same terms.

Summary

The petitioner challenged the imposition of GST under the reverse charge mechanism on seigniorage paid to the Government. The court disposed of the petition based on directions from a previous judgment, stating that adjudication shall be kept in abeyance until a decision by the Nine Judge Constitution Bench on the nature of royalty. No recovery of GST on royalty until the decision is made. The petitioner can raise contentions in appropriate proceedings after the Nine Judge Constitution Bench's decision. The petition was disposed of with no costs.