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.

AI Summary

Clarification Sought on GST Applicability for Royalty Received from Mutual Fund by Broker; Reverse Charge Mechanism Discussed. A participant in a discussion forum inquires about the applicability of Goods and Services Tax (GST) on royalty received from a mutual fund by a client who is a broker. The client is already paying GST on brokerage. One respondent clarifies that royalty is taxable under the reverse charge mechanism (RCM) and asks for clarification on the connection between royalty and mutual funds. Another respondent confirms there is no relation between the brokerage and royalty, stating the mutual fund credited the amount as royalty. A third respondent requests further elaboration with an example.