For the developmental requirements, forests are diverted for non-forest purposes. To compensate for the loss , the law requires that the Net Present Value (NPV) of the diverted forest is calculated for a period of 50 years, and recovered from the “user agency” that is “diverting” the forests.
In this regard the lease holder of the mines pay NPV to the Govt. My query is whether GST is leviable on such NPV.
With Regards
Debate Over GST Applicability on NPV Payments for Diverted Forest Land: Royalty or Compensation? Judicial Testing Suggested. A discussion on the applicability of GST on the Net Present Value (NPV) paid by leaseholders for diverted forest land for non-forest purposes. Participants debated whether NPV is subject to GST, considering it a form of royalty or compensation. Some argued that GST is applicable under certain headings and should be paid with Input Tax Credit (ITC) taken, while others cited tribunal decisions suggesting it might not be liable. The consensus leaned towards paying GST to avoid disputes, with some suggesting the need for judicial testing under GST law. (AI Summary)
TaxTMI 
TaxTMI 
