Ministry of Coal is has allotted land for coal mining in MP. In order to develop land for mining, owner of such land and nearby are required to be rehabilitated and resettled. This rehabilitation and resettlement (R&R) is required to be as per RFCTLARR,2013. As per RFCTLARR, District collector is appointed as a administrator under whom this R&R is to be implemented. Under this R&R, certain amount is being paid to Gov. of MP,who will pay such amount to affected family. Following are the queries in this case:
1.Who is the supplier in this case whether land owner or Gov. of MP?
2.Whether this should be considered as tolerance of an act?
GST Not Applicable on R&R Compensation for Coal Mining Land; Not Considered Supply Under Schedule-II Para 5(e) CGST Act. The discussion revolves around the applicability of Goods and Services Tax (GST) in the context of rehabilitation and resettlement (R&R) for land allocated for coal mining in Madhya Pradesh. The main queries are about identifying the supplier-whether it is the landowner or the Government of Madhya Pradesh-and whether the payments constitute a service of tolerance of an act. Responses suggest that compensation does not qualify as income or consideration, thus not constituting a supply under GST regulations, particularly referencing Schedule-II Para 5(e) of the CGST Act. (AI Summary)
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