GST LIABILITY ON AUCTION PREMIUM PAID TO STATE GOVERNMENT

[shradhananda padhi]

THE ASSESSEE ENGAGED IN THE BUSINESS OF MINING OPERATION AND TAKE THE MINING LEASE FROM STATE GOVERNMENT OF ODISHA ON AUCTION BASIS AND NOW THE ASSESSEE WILL MAKE AUCTION PREMIUM TO GOVERNMENT.

PLEASE SUGGEST IS THE ASSESSEE LIABLE TO PAY GST UNDER RCM.............

AI Summary

Mining Company Queries GST Liability on Auction Premiums Under Reverse Charge Mechanism, Citing Notification No. 13/2017 A mining company in Odisha, which acquires mining leases through auctions, inquired about its GST liability on auction premiums paid to the state government. One respondent explained that the auction premium is part of the consideration for licensing services under Head 997337 and is subject to GST under the reverse charge mechanism (RCM) as per Notification No. 13/2017. Another respondent questioned whether GST should be paid again on the premium amount, suggesting this could result in double taxation.