RCM on royalty paid for road construction

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company paid royalty for road construction contract.whether As recipient company need to pay RCM under Gst and secondly if government deducted royalty amount from bills and government itself paid royalty..then rcm is to be paid by the company or not
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As per Sec. 7 of the CGST Act, 2017, “Supply includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business”. Therefore, Royalty charges will be treated as supply as it is the right given in return of consideration in the form of charges collected. You have to pay GST on full invoice value of contract work and there is no question of RCM. As we understood royalty is deducted by the awarder from your payment like TDS and other deductions.

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