GST Notice on Seigniorage Payments Suspended, Objections Allowed Pending Constitution Bench Review of Royalty Interpretation

HC disposed of petitions challenging GST notice on seigniorage payments, following precedent set in previous case. Government Advocate accepted notice and referred to prior Division Bench judgment. Directions included suspending GST recovery, allowing objection submissions, and deferring final adjudication pending Nine Judge Constitution Bench decision on royalty nature. Petitions closed without costs.

---

---

Issues involved: Challenge to notice issued u/s GST ASMT-10 under Tamil Nadu Goods and Services Tax Act, 2017 regarding imposition of GST under reverse charge mechanism on seigniorage paid to Government.

Judgment Summary:

The petitioner challenged the notice issued in Form GST ASMT-10 under the Tamil Nadu Goods and Services Tax Act, 2017, related to the imposition of GST under the reverse charge mechanism on seigniorage paid to the Government. The Government Advocate accepted the notice and referred to a recent judgment of the Division Bench in A. Venkatachalam v. Assistant Commissioner. The directions issued in the judgment included the submission of objections within four weeks, adjudication after hearing the petitioners, keeping adjudication orders in abeyance until a decision by the Nine Judge Constitution Bench on royalty nature, no recovery of GST on royalty until the Nine Judge Constitution Bench decision, redressal of grievances before appropriate forum, acting upon notification and circular after the Nine Judge Constitution Bench decision, and leaving all contentions open for future proceedings. Consequently, the petitions were disposed of in line with the directions issued in the A. Venkatachalam case, with no costs incurred. Additionally, related W.M.P. Nos. 4025, 4026, 4028, 4029, 4030, 4031, 4033, and 4034 of 2024 were closed without costs.

---