Royalty payment and GST, Goods and Services Tax - GST

[Nishtha Jain]

We have a party that pays royalty directly to the government ON BEHALF of the license holder. Can this be done? And should the RCM be paid by such party only or the license holder? Please guide on the same.

Posts / Replies

[Sadanand Bulbule]

GST on "royalty" is to be paid by the MINING LEASE holder under RCM, issued by the State Department of Mines and Geology. So the question of paying it on behalf of some other party does not fit into the frame of correct compliance.

Liability of tax under RCM would be saddled on the mining lease holder. Take precautions.