Seigniorage GST Demand Stayed

The Madurai Bench of the Madras High Court has granted relief to an assessee facing GST demand on seigniorage charges by directing that the assessment order and consequential demand remain in abeyance until the Supreme Court finally decides the larger controversy concerning the taxability of royalty and seigniorage payments. 

Recognising that the issue is already pending before the Supreme Court in the Udaipur Chambers of Commerce and Industry matter, the Court adopted a pragmatic approach by preserving the rights of both the Revenue and the taxpayer pending final adjudication by the apex court.