Coal Transport in Mining Now Classified as Vehicle Rental; GST Reduced from 18% to 12% Since July 2022.

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Full Text of the Document

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....The transportation of coal (minerals) within a mining area, such as from the mining pit head or coal stockyard to the railway siding or beneficiation plant, for a specified period and at an agreed price, is classified under SAC 9966, i.e., Renting of Transport Vehicles. The service of transporting minerals within a mining area by vehicles deployed with drivers is considered a service of renting transport vehicles with operators, falling under Heading 9966, and not a service of transportation of goods by road. Consequently, it is not eligible for exemption under Sl. No. 18 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. On such rental services of goods carriages where the cost of fuel is included in the consideration charged.........