TaxTMI 
TaxTMI 
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)
RCM CLAUSE 9 ( 3 ) AND 9 ( 4 )
07 Dec 2018 
4 Replies 
1547 Views Asked by
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. (AI Summary)
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. (AI Summary)