GST ON ROYALTY UNDER RCM

[Sadanand Bulbule]

Dear experts

It is admitted fact that GST on royalty is to be paid under RCM by Mining Lease holders. However in few districts of Karnataka, mining activities have been fully controlled by the Monitoring Committee appointed by the Hon'ble Supreme Court. As such they are under the obligation to strictly follow the terms and conditions imposed by such committee. One of the conditions is such mining lease holders have to pay Royalty, Forest Development Cess and GST directly to the committee and in turn it would remit it to the respective Government departments.

The question is since the mining lease holders have already paid GST on royalty under 'Forward charge mechanism [FCM]', the GST Authorities are fastening once again tax liabiIity under RCM despite bringing to their knowledge the said legal position.

What is the remedy for such double liability? Explore the solutions.

AI Summary

Debate Over Double Taxation on Royalty Payments: GST Under RCM and FCM for Mining Leaseholders Sparks Controversy A discussion forum addresses the issue of Goods and Services Tax (GST) on royalty payments under the Reverse Charge Mechanism (RCM) for mining leaseholders in Karnataka. Despite paying GST under the Forward Charge Mechanism (FCM) as per Supreme Court-appointed Monitoring Committee guidelines, the GST authorities are imposing additional tax liabilities under RCM. Participants debate the legality of this double taxation and suggest remedies, including appeals and writ petitions. They discuss relevant legal precedents and express frustration over the financial burden and administrative challenges posed by such tax demands. The forum also touches upon similar issues in housing society redevelopments.