WHAT RCM RATE OF ROYALTY FEE PAID BY MINES HOLDER TO GOVERNMENT FOR MINING OF GRANITE AND MARBLE ?

Reply—Services supplied by the Central Government, State Government, Union territory or local authority to a person registered under the Central Goods and Services Tax Act, 2017 to any person registered under the Central Goods and Services Tax Act, 2017 read with clause (v) of section 20 of Integrated Goods and Services Tax Act, 2017 is liable to reverse charge under notification  No.10/2017-Integrated Tax (Rate) Dated: June 28, 2017.

Till 31.12.2018 the rate of GST on the impugned services was applicable at the rate of tax as applicable to like goods involving transfer of title of goods i.e. 5% in the case of iron ore, the goods supplied by the applicant, and the rate of GST stands increased to 18% (CGST 9% + SGST 9% ) from 01.01.2019 onwards.

Refer notification no.27/2018-Central Tax (Rate) Dated: 31st December, 2018.