Supreme Court directs Monitoring Committee to aid lessees in claiming input tax credit for minerals purchased in e-auctions

The Supreme Court directed the Monitoring Committee to assist lessees in claiming input tax credit under the Central Goods and Services Tax Act, 2017 for minerals purchased in e-auctions. Buyers were instructed to pay GST directly to the lessee, who would handle compliance. The Court sought clarification from the Union of India on conflicting positions regarding ceiling/cap issues in applications filed by the Ministry of Steel and Mines, setting a deadline for clarification before the next hearing. Additional case-related applications were scheduled for consideration in October.

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Issues:
1. Input tax credit under the Central Goods and Services Tax Act, 2017 for mineral purchased in e-auction.
2. Contradictory stand by the Union of India regarding the ceiling/cap in applications filed by the Ministry of Steel and Mines.

Analysis:
1. The Supreme Court directed the Monitoring Committee to facilitate lessees in claiming input tax credit under the Central Goods and Services Tax Act, 2017 for minerals purchased in e-auctions. The court specified that the GST payable on the mineral sale value should be paid directly by the buyer to the lessee, who would be responsible for all necessary compliances. The Committee was instructed to prepare appropriate proforma and ensure proper Tax Identification Numbers on invoices for lessees.

2. Regarding the contradictory stands presented in applications by the Union of India through the Ministry of Steel and Mines, the Court sought clarity on the Union's precise stance and prayer concerning the ceiling/cap issue. The Union was directed to file the necessary application clarifying their position before the next hearing scheduled for 10th October, 2017. Various other applications related to the case were also listed for specific dates in October for further consideration and proceedings.

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