GST on Royalty

[CA Suraj]

If the client is received Royalty from mutual fund of which he is broker then whether GST is applicable on it?

Client is paying Gst on brokerage.

Thanks in Advance for reply.

[KASTURI SETHI]

Consideration in the form of royalty is taxable under RCM. GST is also payable on brokerage. In your case, how ROYALTY is correlated to mutual fund ? Pl. elaborate your query.

[CA Suraj]

There is no relation with brokerage. MF have just cridited the amount saying it's royalty.

Client is charging brokerage from MF per month also.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir.

Querist, can you elaborate a bit more with an example.

AI Summary

GST on royalty: royalty payments treated under reverse charge mechanism while brokerage remains separately taxable. A broker received a separately credited amount labelled as royalty from a mutual fund in addition to monthly brokerage. Consideration described as royalty can attract GST and may be subject to the reverse charge mechanism, while brokerage remains independently taxable; factual clarification is required to classify the credited amount and determine the correct GST treatment.