PAYMENT OF RCM ON SENIORAGE CHARGES

[gunda ashok kumar]

Sir,

It is submitted that one of my client has paid the tax on senior age charges through forward charges for the period from July 2017 to March 2023 as there was no clarity for payment of RCM on senior age charges till issue of Circular No.164/20/2021-GST dated 6-10-2021 now department is asking to pay the RCM on senior age charges. Recently Apex court given the judgement that the senior age charges is not tax and levy of GST on senior age charges is pending. Therefore we request to clarify for payment of GST on senior age charges by way of RCM

AI Summary

Reverse charge on seigniorage: licensing and ancillary levies form taxable consideration, but tax paid under forward charge should not be double collected.
Seigniorage/royalty payable for mining leases constitutes consideration for a licensing service taxable under the licensing services tariff (SAC 997337); ancillary levies tied to royalty (DMF, NMET/MERIT) form part of that consideration for valuation. While a clarificatory circular on reverse charge may operate retrospectively, tax cannot be charged twice-if tax was validly discharged under forward charge, it should not be re demanded under reverse charge. Classification as a composite bundled service and application of specific description principles determine the tax character.