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 rate of tax applicable on such services, shall be the same rate of tax as applicable on supply of like goods involving transfer of title in goods.
Rate of tax (service)— In the instant case, applicant is is engaged in the business of mining of minerals in the State of Haryana. The applicant has been awarded with one mining contract from the Haryana State Government in respect of mineral mines of “Stone along with associated minor minerals” at “Ramalwas” having tentative area of 12.25 hectares in Tehsil Dadri, District Bhiwani, falling in Khasra No. 125/1, Haryana.
The applicant has framed the following questions for ruling by the Advance Ruling Authority:-
(a) Since, the applicant is the person responsible to pay GST on the Mineral mining rights in lieu of which Royalty is being paid, at what GST rate should it discharge its GST liability whether at the rate of 5% (Rate applicable on extracted raw material) or 18% (Residual category)?
(b) In case the applicable GST rate is 5%, whether the applicant could adjust its future GST liability, out of excess GST paid on such Mineral Mining Rights at the rate of 18% in the past?
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-CT (Rate) dated 28.06.2017 is included in group 99733 under heading 9973. 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. Further, the said services being covered in entry at Sr. No. 17 (viii) of the table in notification no. 11/2017-CT (Rate) dated 28.06.2017. Being so, the rate of tax applicable on such services, as provided therein, shall be the same rate of tax as applicable on supply of like goods involving transfer of title in goods. The goods involved being classifiable under tariff heading 2516, GST @ 5% is payable on the said goods and likewise on the services involved in question.
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 rate of tax applicable on such services, shall be the same rate of tax as applicable on supply of like goods involving transfer of title in goods.
Rate of tax (service)— In the instant case, applicant is is engaged in the business of mining of minerals in the State of Haryana. The applicant has been awarded with one mining contract from the Haryana State Government in respect of mineral mines of “Stone along with associated minor minerals” at “Ramalwas” having tentative area of 12.25 hectares in Tehsil Dadri, District Bhiwani, falling in Khasra No. 125/1, Haryana.
The applicant has framed the following questions for ruling by the Advance Ruling Authority:-
(a) Since, the applicant is the person responsible to pay GST on the Mineral mining rights in lieu of which Royalty is being paid, at what GST rate should it discharge its GST liability whether at the rate of 5% (Rate applicable on extracted raw material) or 18% (Residual category)?
(b) In case the applicable GST rate is 5%, whether the applicant could adjust its future GST liability, out of excess GST paid on such Mineral Mining Rights at the rate of 18% in the past?
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-CT (Rate) dated 28.06.2017 is included in group 99733 under heading 9973. 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. Further, the said services being covered in entry at Sr. No. 17 (viii) of the table in notification no. 11/2017-CT (Rate) dated 28.06.2017. Being so, the rate of tax applicable on such services, as provided therein, shall be the same rate of tax as applicable on supply of like goods involving transfer of title in goods. The goods involved being classifiable under tariff heading 2516, GST @ 5% is payable on the said goods and likewise on the services involved in question.