TaxTMI 
TaxTMI 
RCM on Royalty Payment to Government
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....CM on Royalty Payment to Government<br> Query (Issue) Started By: - NARENDER YARRAGORLA Dated:- 29-1-2022 Last Reply Date:- 2-2-2022 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>We are paying Royalty to State government, whether RCM u/s 9(3) applicable on the payment? Reply By Shilpi Jain: The Reply: Dispute free view is to pay. However issue is pending before SC whether royalty is a ....
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....tax or not. So if you can take ITC, pay it. Else pay under protest, for a dispute free stand. Reply By KASTURI SETHI: The Reply: GST is payable on Royalty to Govt. under RCM. This is the present legal position. Payment of tax under protest is the best way to claim refund later on, in case Hon'b'e Supreme Court decides the case in favour of the assessees. Reply By CA VMVSRAO: The Reply....
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....: Under GST system whether payment can be made under protest. If yes, under which section please Reply By KASTURI SETHI: The Reply: "Under Protest" is covered under Saving Section 174 of CGST Act and it saves Central Excise Act, Central Excise Rules and Finance Act, 1994 (Service Tax laws including Service Tax Rules for Central Govt. as well as assessees. See erstwhile Rule 233 B of C....
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....entral Excise Rules, 1944. 'Under Protest' is an integral part of principles of natural justice. Reply By Himansu Sekhar: The Reply: In a FAQ released by Board for the Mining Sector, GST is leviable on Royalty. The case pending before Hon'ble Apex Court is to decide as to whether Royalty is a Tax or not. It will have no bearing during the GST period as per Sec. 15 of the CGST Act. Th....
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....e rate of Gst on Royalty has also been clarified by GST Council. Hence instead of contesting the Department GST on Royalty should bevdischarged.<br> Discussion Forum - Knowledge Sharing ....