GST on Royalty –––- The petitioner sought to restrain the respondents from insisting the petitioners to register under the GST Act. The petitioner sent a representation to the respondents stating that the officials from the State Tax Department visited various quarries and insisted the quarry owners to produce accounts book and other documents pertaining to their business and also sought for Transit Pass to ascertain as to whether any quarry materials transported. The petitioners informed them that they are paying royalty charges and the same is in the nature of privilege tax and tax on tax cannot be again levied. The Government Advocate appearing for the respondents relied on the Circular No.164/20/2021-GST dated 06.10.2021 issued by the Government of India and further submitted that the Department is aware about the stay order of the Hon'ble Apex Court.

Held that:- The Hon’ble High Court directed the respondents to consider the petitioners' representations dated 13.06.2022 and 24.06.2022 respectively, and dispose of the same in accordance with law, by following the judgment of the Hon'ble Apex Court.