Classification of service— In the instant case, the applicant sought Advance Ruling on the following question/issue.-

1. What is the classification of service provided by the State of Jharkhand to the petitioner for which Royalty is being paid in light of the notifications mentioned below?

2. What is the GST Rate applicable on given services provided by the State of Jharkhand to the petitioner for which royalty is being paid for?

The royalty/dead rent paid/payable to the Government by the applicant is consideration against the transfer of right to use minerals including its exploration and evaluation as per the lease granted by the Government to the applicant. The services for the right to use minerals including its exploration and evaluation, as per Sr. No. 257 of the annexure appended to notification no. 11/2017-CT (Rate), dated 28.06.2017 is included in group 99733 under heading 9973.

Held that— The services would be classified in group 99733 under heading 9973. The GST rate of 5% GST would be applicable.