TaxTMI 
TaxTMI 
sir,
Whether GST on upfront fees paid on the lease of mines granted during March 2020 is payable.
with regards
Gst on upfront feed
21 Jul 2020 
8 Replies 
3506 Views Asked by
GST liability on upfront lease fees: upfront charges for mine leases attract GST unless covered by specific exemption.
Upfront charges for a mining lease are liable to GST because the exemption for upfront amounts covers long term industrial or infrastructure plot leases by specified government development entities and does not include lease of mines; a Board circular may exempt certain upfront fees and should be checked, while a referenced conditional notification provision addressing pre implementation assignments is inapplicable and the applicable GST rate on the upfront fee was not determined. (AI Summary)
Upfront charges for a mining lease are liable to GST because the exemption for upfront amounts covers long term industrial or infrastructure plot leases by specified government development entities and does not include lease of mines; a Board circular may exempt certain upfront fees and should be checked, while a referenced conditional notification provision addressing pre implementation assignments is inapplicable and the applicable GST rate on the upfront fee was not determined. (AI Summary)