GST on royalty in mining sector

[Sudhir Kumar]

Whether the GST is applicable on royalty paid to the state government to obtain the right to mining?

AI Summary

GST Applicability on State Government Royalties for Mining Rights Under Review; Supreme Court Decision Pending A query was raised about whether Goods and Services Tax (GST) applies to royalties paid to the state government for mining rights. One respondent confirmed that GST is applicable, referencing a FAQ from the Central Board of Indirect Taxes and Customs (CBIC). Another respondent noted that the issue is currently pending before the Supreme Court, indicating ongoing legal deliberation.