https://www.taxtmi.com/circulars?id=56883 Royalty paid by business entities to the government for the use of natural resources is treated as supply of services under GST and is taxable at 18% under the reverse charge mechanism. The recipient business entity is responsible for payment of tax on the royalty amount, and registration is mandatory where tax is payable on this basis, irrespective of the normal threshold limit. Even if royalty has not been paid in accordance with the rules, tax liability remains attracted on the royalty amount legally payable. en-us Thu, 15 Feb 2018 00:00:00 +0530 Tue, 21 Apr 2026 12:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=56883 Royalty paid by business entities to the government for the use of natural resources is treated as supply of services under GST and is taxable at 18% under the reverse charge mechanism. The recipient business entity is responsible for payment of tax on the royalty amount, and registration is mandatory where tax is payable on this basis, irrespective of the normal threshold limit. Even if royalty has not been paid in accordance with the rules, tax liability remains attracted on the royalty amount legally payable. Circulars GST - States Thu, 15 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/circulars?id=56883