In re Rachna Infrastructure Pvt. Ltd. (GST AAR Gujarat)
(i) What shall be the classification of service provided by the State of Gujarat to applicant in accordance with Notification No. 11/2017-CT (Rate) dated 28.06.2017 read with further amendments made to it?
Ans. The activity undertaken by the applicant is classifiable under Heading 9973 (Leasing or rental services, with or without operator), as mentioned in the annexure at Serial No. 257 (Licensing services for the right to use minerals including its exploration and evaluation) sub-heading 997337 of Notification No. 11/2017-CT (Rate) dated 28.06.2017.
(ii) Whether said service can be classified under Tariff Heading 9973 as item No. (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. Or item No. (viia) Leasing or renting of goods as any other service under the said chapter?
Ans. Licensing services for the right to use minerals including its exploration and evaluation’ which is classifiable under SAC 9973 37 will be covered under residual entry No. (viii) of the Notification No. 11/2017-CT (Rate) dated 28.06.2017 as discussed above.
(iii) What is rate of GST on given services provided by State of Gujarat to M/s. Rachna infrastructure Pvt. Ltd for which Royalty is being paid?
