GST on Royaty paid to Govt, Goods and Services Tax - GST

[Ravikumar Doddi]

Dear sir,

Whether GST is payable or not on royalty paid to Govt by Mining companies, at what rate if it is exempted PL give the notification or circular and SAC code.

Posts / Replies

[KASTURI SETHI]

As per FAQ dated 31.7.17 (Q.No.22) GST is payable on royalty paid to Govt. under RCM.

Question 22 : Whether GST is payable on royalty (to be paid to Government) for Mining Lease granted by State Govt.

Answer : Yes, on royalty GST will apply under reverse charge mechanism. Further, such payment of GST under reverse charge mechanism would be eligible as ITC in the hands of the recipient of supply for payment of

[DR.MARIAPPAN GOVINDARAJAN]

GST is payable by the Government on reverse charge mechanism.

[PAWAN KUMAR]

GST is payable under RCM similar at the rate of 18%. GST paid is also claimable as ITC.

[CASusheel Gupta]

GST is payable by mining companies under RCM

Refer to entry no. 5 of notification number 13/2017.

Thanks and Regards

CA Susheel Gupta

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