Statutory mining contributions form part of taxable value and attract GST under reverse charge for mining lease holders.

Compulsory contributions to the National Mineral Exploration Trust and the District Mineral Foundation, when imposed under the mining regulatory framework, were treated as part of the composite consideration for the Government's supply of mining rights and permission to extract mineral ore. Because the payments arose from the statutory regime and were linked to grant and enjoyment of the mining licence, they were included in the value of supply under section 15(2) as charges levied under other laws. The ruling held that GST was payable under reverse charge in the hands of the mining lease holder where the service provider was the Government and the recipient was a business entity.

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Issues: Whether contributions to the National Mineral Exploration Trust and the District Mineral Foundation, made under the mining regulatory framework, constitute consideration for the supply of mining service by the State Government and form part of the taxable value liable to GST under reverse charge in the hands of the mining lease holder.

Analysis: The contributions were held to arise from the statutory regime governing mining rights and were linked to the grant and enjoyment of the mining licence. The amounts were not treated as independent exactions divorced from the underlying supply, but as compulsory payments forming part of the composite consideration for the service of permitting extraction and use of mineral ore. The value of supply under section 15(2) includes taxes, duties, cesses, fees and charges levied under other laws when charged separately by the supplier, and the ruling treated the NMET and DMF contributions as falling within that inclusive value. Since the service provider was the Government and the supply was to a business entity, the reverse charge notification applied.

Conclusion: Yes. The contributions to NMET and DMF were held to be consideration for the mining service supplied by the Andhra Pradesh Government and were includible in the value of supply, attracting GST under reverse charge in the hands of the applicant.

Ratio Decidendi: Compulsory statutory payments linked to the grant of mining rights and forming part of the composite consideration for the supply are includible in the value of supply and are liable to GST under reverse charge when the service is supplied by the Government to a business entity.

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