TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the contributions to the National Mineral Exploration Trust and the District Mineral Foundation under the mining law qualify as consideration for mining service supplied by the State Government and are includible in the value of supply chargeable to GST under reverse charge.
Analysis: The contributions were treated as compulsory payments linked to the grant and enjoyment of mining rights. The ruling held that the licence to extract mineral ore and the right to use the extracted minerals constituted a single service, and that the payments made towards royalty, NMET and DMF formed the consideration structure for that service. It further held that the value of supply under GST includes taxes, duties, cesses, fees and charges levied under other laws when charged separately by the supplier. On that basis, the NMET and DMF contributions were held to be includible in the value of supply, and services supplied by the Government to a business entity were liable under the reverse charge mechanism.
Conclusion: The contributions to NMET and DMF are consideration towards the mining service supplied by the Andhra Pradesh Government and are includible in the value of supply, making them chargeable to GST under reverse charge in the hands of the applicant.
Ratio Decidendi: Compulsory payments made as part of the consideration for a single governmental mining licence service form part of the value of supply and are taxable under reverse charge when the recipient is a business entity.
TaxTMI 
TaxTMI 
