Case Law Details
In re R.V Minerals (GST AAR Andhra Pradesh)
In the case of In re R.V Minerals (GST AAR Andhra Pradesh), the Advanced Ruling Authority considered several key issues regarding the GST classification and rates applicable to aggregates and royalty charges collected by M/s R.V Minerals. Here’s a detailed summary of the ruling:
Case Background and Facts
M/s R.V Minerals is engaged in manufacturing aggregates (stone crusher unit) from boulders purchased from quarries with mining permits. These aggregates are classified under tariff heading 2517 and attract a GST rate of 5% on their supply.
Additionally, M/s Sudhakar Infra, acting as a collecting agency, collects royalty from quarry leaseholders in East Godavari and Dr. B.R. Ambedkar Konaseema districts under the authority of the mining department. The royalty, classified under HSN 997335, is subject to GST at the rate of 18% under forward charge. The applicant purchases boulders from leaseholders M/s Pranathi Metals and M/s Pavithra Metals, who charge GST at 18% on royalty and 5% on the value of boulders.
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