State Government Services to Excess Royalty Collection Contractors for Mineral Royalty Collection Exempt from GST Under 2018 Provision.

Services provided by a State Government to an Excess Royalty Collection Contractor (ERCC) for collecting royalty on minerals dispatched by mining lease holders are exempt from GST. A mining lease holder is defined under the Mines and Minerals (Development and Regulation) Act, 1957. At the contract's end, the ERCC must account for GST deposited by mining lease holders. If the GST paid by these holders is less than the GST exempted for the ERCC's services, the exemption is limited to the GST paid by the holders, and the ERCC must pay any difference. This provision was introduced in July 2018.