GST on mining royalty upheld after royalty was treated as non-taxable in the earlier contrary view.

GST could be levied on royalty paid by a mineral concession holder for a mining concession, because the earlier view treating royalty as a tax had been displaced by the later Supreme Court ruling that royalty is not tax. On that basis, the challenge to the levy failed and the notices and summon calling for GST on royalty were upheld.

---

---

Issues: Whether GST can be levied on royalty paid by a mineral concession holder for a mining concession granted by the State, and whether the impugned notices and summon calling for such levy could be quashed.

Analysis: The earlier view that royalty itself is a tax stood displaced after the later Supreme Court decision holding that royalty is not a tax. In that light, the levy of GST on royalty paid for mining concessions was held to be within the respondents' to tax, and the challenge to the notices and summon was unsustainable.

Conclusion: The levy of GST on royalty was upheld, and the impugned notice dated 16.02.2024 and summon dated 15.03.2024 were upheld. The petition was dismissed.

---