TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Rectification request denied for GST reverse charge on DMF/NMET contributions</h1> <h3>IN RE : NMDC LTD.</h3> The application for rectification of the Advance Ruling order regarding the treatment of statutory contributions to District Mineral Foundation (DMF) and ... Rectification of mistake - Supply or not - statutory contributions made to District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET) as per MMDR Act, 1957 - levy of GST under reverse charge mechanism - HELD THAT:- The authority, in the AAR Order ruled that the contributions made towards DMF & NMET are not separate transactions but are on account of the supply made & are directly linked to the royalty payable; also computed as a fixed percentage of royalty and hence are treated as part of the consideration payable for the Licensing Services for right to use minerals including exploration and evaluation. It is clearly evident from the aforesaid AAR Order that the authority has considered all the submissions and issued the proper order. Hence there is no error/apparent mistake on the face of the record, in the said order and hence the instant application is not valid and is liable for rejection, in terms of Section 98(2) of the CGST Act, 2017 - the instant application filed by the applicant for rectification of mistake in the Advance Ruling is dismissed. Issues: Rectification of mistake in Advance Ruling order regarding statutory contributions made to District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET) under GST reverse charge mechanism.Analysis:1. The Applicant filed an application for rectification of mistake (ROM) regarding the Advance Ruling order passed on the question of whether statutory contributions to DMF and NMET under the MMDR Act, 1957 amount to 'supply' and are liable for GST under reverse charge.2. The Authority had initially ruled that the contributions to DMF and NMET are part of the consideration for licensing services related to the right to use minerals, including exploration and evaluation.3. The Applicant contended that the Authority did not rule on whether the contributions constitute a supply under Section 7 of the CGST Act, 2017, and also erred in treating the payments as a single transaction instead of two separate transactions.4. During the personal hearing, the Applicant's representative reiterated their arguments from the ROM application.5. The Authority maintained its stance that the contributions to DMF and NMET are not separate transactions but are linked to the royalty payable, being a fixed percentage of royalty, and are considered part of the consideration for licensing services related to mineral use.6. The Authority concluded that the original ruling was proper, considering all submissions, and found no error or apparent mistake justifying the rectification application's rejection under Section 98(2) of the CGST Act, 2017.7. Consequently, the application for rectification of the Advance Ruling order was rejected, affirming the Authority's decision on the treatment of statutory contributions to DMF and NMET under the GST reverse charge mechanism.
TaxTMI 
TaxTMI 
