RCM CLAUSE 9 ( 3 ) AND 9 ( 4 )

[narednra gatagat]

SIR

I AM A EDUCATIONAL BOOKS PUBLISHERS

I PAY ROYALTI TO AUTHOR

GST APPLICABLE OR NOT APPLICABLE ON ROYALTI UNER RCM CLAUSE 9 (3) OR 9 (4)

[KASTURI SETHI]

It is covered in Serial No.9 of Notification No.13/2017-Central Tax (Rate) dated 28.6.17 as amended. read with Section 9(3) of CGST Act, 2017 is applicable. It is taxable under RCM.

[Ganeshan Kalyani]

The said service is taxable w.e.f 01.07.2017@18%.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of both the experts.

[Ganeshan Kalyani]

Thanks.

AI Summary

GST on Author Royalties Taxable Under Reverse Charge Mechanism, 18% Rate as per Section 9(3) CGST Act An educational books publisher inquired about the applicability of GST on royalties paid to authors under RCM Clause 9(3) or 9(4). The responses clarified that royalties are taxable under the Reverse Charge Mechanism as per Serial No. 9 of Notification No. 13/2017-Central Tax (Rate) dated 28.6.17, in accordance with Section 9(3) of the CGST Act, 2017. The applicable GST rate is 18% effective from July 1, 2017. The responses were in agreement, confirming the taxability of the service.