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TaxTMI 
We are paying Royalty to State government, whether RCM u/s 9(3) applicable on the payment?
RCM on Royalty Payment to Government
29 Jan 2022 
5 Replies 
16376 Views Asked by
Reverse charge on royalty payments to government: discharge GST under RCM or pay under protest if input credit unavailable
The central position is that GST is payable on royalty paid to a State government under the reverse charge mechanism, supported by GST Council rate clarification; pending Supreme Court consideration of whether royalty is a tax does not affect GST valuation, and taxpayers are advised to pay under protest when input tax credit cannot be claimed to preserve refund rights. (AI Summary)
The central position is that GST is payable on royalty paid to a State government under the reverse charge mechanism, supported by GST Council rate clarification; pending Supreme Court consideration of whether royalty is a tax does not affect GST valuation, and taxpayers are advised to pay under protest when input tax credit cannot be claimed to preserve refund rights. (AI Summary)