Royalty for mining rights treated as licensing services; GST applies and tax payable by recipient under reverse charge.

Royalty for mining rights treated as licensing services; GST applies and tax payable by recipient under reverse charge. https://www.taxtmi.com/highlights?id=96783 Royalty payments for mining leases are consideration for licensing services to excavate and explore minerals, not sale of goods; they therefore fall under licensing services for the right to use minerals (SAC 997337) and attract GST at 9% CGST + 9% SGST (total 18%). The supply is a taxable service provided by the State to a business and tax liability arises on the recipient under the reverse charge mechanism. The service cannot be classified as supply of goods attracting a 5% rate under the transfer-of-title entry and is therefore not chargeable under that entry. en-us Wed, 11 Feb 2026 09:36:35 +0530 Wed, 11 Feb 2026 09:36:37 +0530 TaxTMI RSS Generator Royalty for mining rights treated as licensing services; GST applies and tax payable by recipient under reverse charge. https://www.taxtmi.com/highlights?id=96783 Royalty payments for mining leases are consideration for licensing services to excavate and explore minerals, not sale of goods; they therefore fall under licensing services for the right to use minerals (SAC 997337) and attract GST at 9% CGST + 9% SGST (total 18%). The supply is a taxable service provided by the State to a business and tax liability arises on the recipient under the reverse charge mechanism. The service cannot be classified as supply of goods attracting a 5% rate under the transfer-of-title entry and is therefore not chargeable under that entry. Highlights GST Wed, 11 Feb 2026 09:36:35 +0530 https://www.taxtmi.com/highlights?id=96783