TaxTMI 
TaxTMI 
2019 (4) TMI 1498
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....her, the applicant being a registered person (GSTIN is 08AAACW5635N1ZU), as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. 1. SUBMISSION AND INTERPRETATION OF THE APPLICANT: a. The applicant is a Limited company registered under the Companies Act having their office at E 101, Mewar Industrial Area, Madri, Udaipur, Rajasthan, 313001. The Applicant is also registered under the provisions of Central Goods & Services Tax Act, 2018 read with the provisions of the Rajasthan Goods & services tax Act, 2017 having GSTIN 08AAACW5635N1ZU. b. That the Applicant is engaged in the business of mining of Wollastonite, Calcite, Feldspar and Quartz at Sirohi in the State of Rajasthan. The said products are classifiable under Tariff Chapter 25 and are taxable at the rate of 5% under GST. That the applicant has been granted a mining lease for extracting Wollastonite, Calcite, Feldspar and Quartz at village Khertala, Pindwara Tehsil, District Sirohi, Rajasthan by the state Governm....
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....vied 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 cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person. III. By way of this Section, every transaction which qualifies as a Supply except Supply of alcoholic liquor for human consumption shall be taxable and the taxable person would be liable to pay GST. The said transaction falls under the definition of Supply and is therefore taxable under the provisions of GST. The same has also been confirmed by the Ministry in their GST Flyer pertaining to FAWs on Government Services, wherein it was asked Whether an amount in the form of royalty or any other form paid/ payable to the Government for assigning the rights to use of natural resources is taxable? IV. It was explained that the Government provides license to various companies including Public Sector Undertakings for exploration of natural resourc....
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....than Information Technology software. 6 - (ii) Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of Information Technology software. [Please refer to Explanation No. (v)] 9 - (iii) Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. Same rate of central tax as on supply of like goods involving transfer of title in goods - (iv) Any transfer of right in goods or of undivided share in goods without the transfer of title thereof. Same rate of central tax as on supply of like goods involving transfer of title in goods (v) Leasing of aircrafts by an operator for operating scheduled air transport service or scheduled air cargo service by way of transaction covered by clause (f) paragraph 5 of Schedule II of the Central Goods and Services Tax Act, 2017. Explanation.- (a) "operator" means a person, organisation or enterprise engaged in or offering to engage n aircraft operations; (b) "sch....
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....e present case are classifiable under Chapter 25 in heading numbers 2506, 2529 and 2530 which are all taxable at the rate of 5%. The Entries are reproduced hereunder for your kind perusal: S.No. HSN Description 114. 2506 Quartz (other than natural sands); quartzite whether or not roughly trimmed or merely cut by sawing or otherwise 136. 2529 Feldspar; leucite nepheline and nepheline syenite; fluorspar. 137. 2530 Mineral substances not elsewhere specified or included. Therefore it is our humble submission that the rate of GST applicable on the Service provided by the State Government of Rajasthan to the Applicant is taxable at the same rate at which the supply of like goods involving transfer of such goods is taxed. Thus, according to us as we are extracting Quartz, Feldspar, etc. which are taxable at the rate of 5% the tax as Services provided by the State Government of Rajasthan for Royalty / Dead Rent would also be liable to tax under GST at the rate of 5%. XII. CONCLUSION Therefore, it is our humble submission that the Dead rent payable to the Government by the Applicant is the consideration against the transfer of r....
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....019 which can be summarized as, the activity undertaken by the applicant is covered under Serial Number 258 of chapter head 997338 i.e. "Licensing services for right to use other natural resources including telecommunication spectrum" which is broadly covered in 9973 i.e. licensing or rental services with or without operator. As per the Notification No. 11/2017 dated 28-06-2017 further amended vide Notification No. 27/2018 dated 31/12/2018 the applicable GST rate on the activity undertaken by the applicant is 18% (SGST 9% + CGST 9%). 5. FINDINGS, ANALYSIS & CONCLUSION: a. We observe that, the applicant entered in to a lease transfer agreement dated 19.03.1976 for obtaining mining lease and engaged in the business of mining of Wollastonite, Calcite, Feldspar and Quartz. The said minerals (goods) are classifiable under tariff heading 2506, 2529 and 2530 and are leviable to GST on their supply at the rate of 5%. b. The Government provides license to various companies including Public Sector Undertakings for exploration of natural resources like oil, hydrocarbons, iron ore, manganese etc. For having assigned the rights to use the natural resources, the licensee com....