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.