TaxTMI 
TaxTMI 
2026 (7) TMI 628
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....od of six months from the date of the order. Provided that no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made, unless the applicant or the appellant has been given an opportunity of being heard. 2. Under Section 103 (1) of the Act, this advance ruling pronounced by the Appellate Authority under Chapter XVII of the Act shall be binding only (a) On the applicant who had sought it in respect of any matter referred to in sub-Section (2) of Section 97 for advance ruling; (b) On the concerned officer or the jurisdictional officer in respect of the applicant. 3. Under Section 103 (2) of the Act, this advance ruling shall be binding unless ....
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.... (Development & Regulations) Act, 1957. Further, as per sections 9B and 9C of Mines and Minerals (Development & Regulations) Act, 1957, the applicant shall contribute 30% of royalty to District Mineral Foundation and 2% of royalty to *National Mineral Exploration Trust. 2. The applicant filed an appeal before the lower authority seeking advance ruling on the following questions. (1) Whether, royalty paid in respect of mining lease can be classified under 'Licensing services for the right to use minerals including its exploration and evaluation falling under the heading 9973 attracting GST at the same rate of tax as applicable on supply of like goods involving transfer of title in goods"? (2) Determination of the liabili....
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.... are independent trusts having the status of corporeal person, can be treated as consideration for mining lease? iv. Whether payments to State Government and contributions to DMF & NMET for social service can be regarded as payment to one person or two persons? v. Whether GST is payable under forward charge? Since the trust established under Section 9B and 9C of the MMDR Act does not fall under the definition of Government and therefore, GST is not liable to be paid under reverse charge. 5. On the above questions, the present appeal is filed by the applicant. At the outset, this authority makes it clear that as per sub section 1 of section 100 of the CGST Act, 2017, read with similar provisions of the TSGST Act, 2017, a....
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....g the status of corporeal person, can be treated as consideration for mining lease? The applicant, inter alia, contended the ruling of the lower authority that the tax rate applicable for entry 997337 is applicable to DMF and NMET, on the following grounds: • As per section 7 of the CGST Act, 2017, supplies should meet two tests i.e. supplies are made in furtherance of business and for consideration. • As per Section 7(2) of the Act, with respect to specified activities or transactions with Government, they shall be regarded as supply even if they are not done in furtherance of business since Government does not engage in any business activity. In order to levy tax under the section, the transaction undertaken s....
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.... to DMF and NMET. 12. The State government has allotted the said mines for the mining activity and for the same activity they are required to pay the royalty. Thus, the activities of the applicant squarely gets covered under the definition of 'business' under CGST Act, 2017. For this mining activities, they are also required to contribute an amount of 30% of royalty towards DMF and 2% of royalty towards NMET under the specific provisions of the MMDR Act. This payment to both the trusts is on account of their mining operations being carried out in the State. Thus these contributions get covered under 'any other activity whether or not it is for a pecuniary benefit and also towards furtherance of their business'. There is no dispute that t....
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....dren, supply of medical equipment etc. 5.2 These activities are similar to activities that are enlisted in Eleventh Schedule and Twelfth Schedule of the Constitution. The ultimate users of the various schemes under DMF are individuals, families, women and children, farmers/producer groups, SHGs of the mining affected areas etc. The services/supplies out of DMF are provided free of charge and no consideration is realized from the beneficiaries by DMF against such services. 5.3 Accordingly, it is clarified that DMFT set up by the State Governments are Governmental Authorities and thus eligible for the same exemptions from GST as available to any other Governmental Authority. In view of the above clarification, it is ruled....