GST on Royaty paid to Govt

[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.

AI Summary

GST Payable on Mining Royalties Under RCM, 18% Rate Applicable, Claimable as ITC per Notification 13/2017 Entry 5. A query was raised regarding the applicability of GST on royalties paid by mining companies to the government. Responses from various participants confirmed that GST is indeed payable on such royalties under the reverse charge mechanism (RCM). The GST rate applicable is 18%, and it can be claimed as an Input Tax Credit (ITC) by the recipient. The discussion referenced entry no. 5 of notification number 13/2017 for further details.