Royalty amount for mining is to be included while arriving at the transaction value for payment GST

The AAR, Chhattisgarh in the matter of M/s Shanti Enggicon Private Limited [Advance Ruling No. STC/AAR/09/2020 dated November 25, 2020] has ruled that the Royalty amount is includable while arriving at the transaction value for payment of applicable Goods and Services Tax (“GST”) on the supply of services rendered by the assessee to the main contractor under Section 15 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) and 18% GST is applicable on Royalty amount under the Reverse Charge Mechanism (“RCM”).

Source a2ztaxcorp