Is GST payable on Royalty deducted by Government on payment to Road Contractor under RCM.

Reply-  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.