If royalty is ‘tax’, are all statutory fees outside GST levy?

In the pursuit of simplifying taxation laws, recent judicial developments, notably the ONGC case, have ignited debates regarding the classification of royalty as either a ‘tax’ or a ‘fee for service.’ The CESTAT ruled in favor of considering royalty as a form of ‘tax’ and a ‘regulatory fee,’ excepting it from service tax applicability. This decision has far-reaching implications, raising questions about the broader scope of government fees, such as license fees, tender fees, and rents, under the GST regime.

In this article, our Partner, Mr. Deepak Suneja delves into the analysis of the ONGC ruling, its potential impact on GST, and the ongoing debate over the nature of government levies, providing insights into the complex landscape of taxation in India.

Click on the below link to read our article titled ‘If royalty is ‘tax’, are all statutory fees outside GST levy?‘.

NITYA | If royalty is ‘tax’, are all statutory fees outside GST levy? | Indirect Tax | Article 142

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