Gst on royalty payment

your question is ambiguous.

Dear Sir,

You are liable as a consumer of service to pay GST to supplier, who will further deposit the same and do other compliance. This is not dependent on your turnover. As of now:
1. You have to pay gst on royalty
2. You do not need to register till your threshold limits exceeds Rs 20 Lakhs
3. There is no refund in your case.

Whatever the services you avail from Franchisor, you would require to pay GST on it, or if your threshold is below or at par exepmted limit i.e Rs. 19,99,999/- (during the F.Y.) Franchisor need to pay GST on it as reverse charge. further the moment you supply services to the school you should have to raise GST invoice and collect GST from School, or school shall pay GST on reverse charge mechanism. 

to avoid such critical development, it would be better for you to get enrolled your firm in GST, post registration things would become easier for you and parties doing business with you.

Now post registration you have to do the following

on every services avail from franchisor, pay GST on that services, further for every supply of services to School, do not forget to raise GST Tax invoices, now you can claim "input tax credit" on GST paid by you to Franchisor while filing your return with government. you would required to trace all the trail and get your tax planing done as per your business requirement.

For further assistance 

Contact +91-9140924512 or +91-9956344318 or mail at csudbhav1987 @ gmail.com

Udbhav Pratap Singh

(Company Secretary/ CA (Final)