GST liability on Royalty


This query is : Resolved 

Quick Summary
This discussion clarifies GST liability on royalty payments deducted from government contractor RA bills. It explores two common departmental practices: deducting GST before or after royalty deduction. The correct approach depends on the nature of the contract; for instance, repairs to a percolation tank might not incur royalty charges, affecting GST applicability. Examining the contractual terms is crucial to determine the correct GST treatment.

20 September 2023 GST lible or not on royalty deduct from contractor R.A. Bill (Government Contractor)
a) Some departments are are given GST without deduction royalty from R.A. Bill.
b) Some departments are not given GST on royalty they givens GST after deduction royalty from
R.A. bill.

which method is corrent (a) or (b)

20 September 2023 GST applicable on royalty.
What is the nature of contract.

20 September 2023 Repairs of percolation tank.

20 September 2023 Royalty will not arise on such repair work.
It's only GST payable or not.
We have to see contractual terms.


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