Stupid me, I should have created firewall rule to allow ntp packet to be received by router.
Same goes for pings if you want to use Mikrotik router ping utility, This router is very smart.
For anyone else having this problem you should:
Create new firewall rule to accept NTP replies above the deny all trafic rule:
chain: input
protocol: udp
dst port : 123
in interface: wan1 (your WAN interface)
conn state: established
The router is not “smart”. On the contrary, it only does EXACTLY what you tell it to do. If you tell it to drop all, then it will drop all. It doesn’t use any intelligence to try to figure out what you want to do. YOU are the “smarts” of the router. It does only what you allow it to do.