Classification of Service — That applicant is engaged in business of mining of Red Boulder, Soft Boulder and GSB in the State of Haryana.
the applicant has been granted a mining lease for extracting “Stone along with associated minor minerals” at village “Pichopa Kalan”, Distt. Bhiwani, Haryana by the State Government on various terms and conditions. Accordingly, the applicant has framed the following questions:-
1. What is the classification of service provided in accordance with Notification No. 11/2017-CT (Rate) dated 28.06.2017 read with annexure attached to it, by the State of Haryana to M/S Pioneer Partners for which royalty is being paid? Whether said service can be classified under 9973 specifically under 997337 as Licensing services for the right to use minerals including its exploration and evaluation or as any other service?
2. What is the rate of GST on given services provided by State of Haryana to M/s. Poineer partners for which royalty is being paid?
3. Whether services provided by State Government of Haryana is governed by applicability of Notification No 13/2017-CT (Rate), dated 28.06.2017 under entry number 5 and whether M/s. Poineer partners is taxable person in this case to discharge GST under reverse charge mechanism or whether given service is covered by exclusion clause number (1) of entry no 5 and State Government of Haryana is liable to discharge GST on same?
Held that—
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-Central Tax dated 28.06.2017 is included in group 99733 under heading 9973.
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-Central Tax dated 28.06.2017 is included in group 99733 under heading 9973. Hence it attracts the same rate of tax as on supply of the like goods involving transfer of title in goods.
As per entry no. 5 of the Notification No 13/2017-CT (Rate), dated 28.06.2017 under the CGST Act, 2017 and the corresponding Notification No. 48/ST-2 Dt. 30.06.2017 under the HGST Act, 2017, the recipient of such services, i.e., the applicant is liable to discharge the tax liability on such services provided to it by the Government on reverse charge basis.Poineer Partners [2018] 2 TAXLOK.COM 278 (AAR-Haryana)