Our Clint is in business of Mining/ Extraction of Minerals and Trading
of Sand. Our client is purchasing royalty from Government, Whether GST is payable
on the Royalty Purchased from Government in Reverse Charge as Government is Not
registered under GST.
Please guide us on the same matter.
GST on royalty will apply under reverse charge mechanism.
Further, such payment of GST under reverse charge mechanism would be eligible
as ITC in the hands of the recipient of supply for payment of GST (answered by
CBEC in Published Booklet of FAQs on Mining).