GST on Royalty payment —The petitioner is an Excess Royalty Collection Contractor and collect royalty on mining. This job of collecting royalty was treated as a service and was taxed under the reverse charge mechanism. However with effect from 26.07.2018, Entry 65-B was introduced in the exemption notification and the GST on the said collection was exempted with effect from 26.07.2018, but not from the date of commencement of the GST regime 01.07.2017. Accordingly, respondents have worked out demand. The counsel for the petitioner submitted that it is the petitioner who is rendering service to the State Government, therefore, no GST is leviable upon it.

 Held that—The Hon’ble High Court issued notice to the respondent returnable within six weeks and directed that until further orders of this Court, the effect and operation of the impugned order dated 16.08.2022 shall remain in abeyance.