TaxTMI 
TaxTMI 
TaxTMI 
2018 (9) TMI 1477
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....icant is engaged in business of mining of Red Boulder, Soft Boulder and GSB in the State of Haryana. The said products are classifiable under Tariff Heading 2516 and are leviable to GST on their supply at the rate of 5%. 3. That the applicant has been granted a mining lease for extracting "Stone along with associated minor minerals" at village "Pichopa Kalan", Distt. Bhiwani, Haryana by the State Government on various terms and conditions as per the LOI and Lease deed (Annexure-4). 4. That further-in accordance with the Part-Ill ("Covenants of the Lessee") in para 3(a) of the Lease deed it has been agreed that the bid amount of Rs. 16.46 cr shall become "annual dead rent" as amount agreed to be paid by lessee and the rate of same shall in....
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.... understand what is the nature of service which has been provided by The State Government of Haryana to it along with the rate of GST on it and who is the person liable to discharge GST on the same. Accordingly, the applicant has framed the following questions:- 1. What is the classification of service provided in accordance with Notification No.11/2017-CT (Rate) dated 28.06.2017 read with annexure attached to it, by the State of Haryana to M/S Pioneer Partners for which royalty is being paid? Whether said service can be classified under 9973 specifically under 997337 as Licensing services for the right to use minerals including its exploration and evaluation or as any other service? 2. What is the rate of GST on given services provided b....
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.... being covered by clause (a) & (b) of section 97 (2) of the CGST/HGST Act 2017. As regard merits, the decision was reserved which is being released today. Discussion and finding of the authority For the purpose of understanding the questions involve, the applicant has highlighted the following relevant provisions of the law. 1. Section 9 of the CGST Act 2017 which is charging section of Goods & Services Tax states: 9(1) Subject to provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cen....
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....r leasing of mines. Hence, it has been argued that, the classification of services in accordance with Notification No. 11/2017-CT (Rate) 28.06.2017, according to applicant is covered at Sr. No. 17 of the notification. 6. Since, a perusal of classification of services shows that services of right to use natural resources classify under tariff 9973 and since description of services under serial no. 17 (i) to (v) does not cover such services of right to use minerals therefore, it would fall under the residual entry at serial no. 17(viii). Being so, the rate of tax applicable on such services, as provided therein, shall be the same rate of tax as applicable on supply of like goods involving transfer of title in goods. 7. That on the basis of ....
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....cluded in group 99733 under heading 9973. The royalty/dead rent paid/payable to the Government by the applicant is consideration against the transfer of right to use minerals including its exploration and evaluation as per the lease granted by the Government to the applicant. 2. What is the rate of GST on given services provided by State of Haryana to M/s. Poineer Partners for which royalty is being paid? Ruling The services for the right to use minerals including its exploration and evaluation, as per Sr. No. 257 of the annexure appended to notification no. 11/2017-CT (Rate), dated 28.06.2017 is included in group 99733 under heading 9973. Hence it attracts the same rate of tax as on supply of the like goods involving transfer of title i....