Q. 349 Sir, My Client owns a Stone Crusher. The stone is liable for 5% GST unde HSN Code 2517. While preparing Sales Invoices he charges Royalty paid separately to the client. What will be the gist Rate for it? Will it be 5% as per the main product being Composited Supply or will it be 18% as applicable for Royalty paid to Government by the Client ?

Ans. As per our opinion, it will be treated as mixed supply and 18% gst rate will be applicable on it.