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The royalty paid in respect of Mining Lease is a part of the consideration payable for the Licensing services for right to use minerals including exploration and evaluation falling under the Head 9973.

Classification of Supply — The Applicant is engaged in the business of developing, owning, hiring, leasing or otherwise acquiring or disposing off any rights in any mines, stone quarry lands, and exploring, drilling, processing etc., of all types of products derived from such mines and stone quarry lands. The applicant is quarrying building stones and sells it to the customers. Building stones attracts GST at 5% under Heading 25169020 in Schedule-I. The Applicant sought advance ruling in respect of royalty payments in respect of quarrying /mining lease as per the MMDR Act read with the KMMC Rules. The authority ruled out that the royalty paid in respect of Mining Lease is a part of the consideration payable for the Licensing services for right to use minerals including exploration and evaluation falling under the Head 9973. — Naren Rocks And Mines Private Limited, In Re… [2019] 16 TAXLOK.COM 158 (AAR-Karnataka)