Date of allotment of mines is time of supply under GST for Upfront payment

In re Essel Mining and Industries Ltd. (GST AAR Madhya Pradesh)

Upfront payment made to the state Government is in the nature of advance from the date Of allotment of mines on lease to the applicant for the purpose of determining the time of supply under GST Law as per the Section 13(3) of MP GST Act, 2017 and hence applicant is liable to pay service tax from the date of allotment of mines on lease by the government as the upfront payment made by the Applicant to state Government is an advance

FULL TEXT OF ORDER OF THE AUTHORITY OF ADVANCE RULING, MADHYA PRADESH

1. M/s Essel Mining and Industries Limited (hereinafter referred to as having its registered office at 60, West Sultania Road, Opposite Old Secretariat, Koh-E-Fiza, Bhopal, Madhya Pradesh, 462001, is engaged in the business of mining and minerals.

2. The applicant is registered under the Central Goods and Services Tax Act, 2017 (CGST Act) and State Goods and Services Tax Act, 2017 (SGST Act), and holds GST registration number 23AAACE6607L1ZQ (in the State of Madhya Pradesh).

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