No GST Recovery on Royalty Until Resolved by SC Constitution Bench: Madras HC

Tvl. A.Venkatachalam Vs Assistant Commissioner (ST) (Madras High Court) The Madras High Court addressed several writ petitions filed by petitioners challenging the imposition of Goods and Services Tax (GST) on royalties paid for mining leases. The petitioners argued that royalties constitute a ‘tax’ and not a ‘service,’ and thus should not fall under the purview of GST as defined under Sections 7 and 9 of the CGST Act, 2017. The petitioners contended that the lack of a taxable event, such as the provision of service, nullified the GST charge on royalties. The court exam...