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

Reverse charge mechanism: royalties paid to authors are taxable and the recipient must discharge GST under RCM. A publisher's query whether royalties to authors fall under RCM clause 9(3) or 9(4) was answered by reference to Serial No.9 of Notification No.13/2017-Central Tax (Rate) as amended and the corresponding provision of the CGST Act, concluding that royalties to authors are taxable under the reverse charge mechanism and the recipient is liable to discharge the tax under GST.