GST on Transportation of coal from mines to railway siding or delivery point

In re Utkal Coal Mining India Private Limited (GST AAR Odisha)

In the case of Utkal Coal Mining India Private Limited, the applicant sought clarification on the taxability and applicable GST rate for the transportation of minerals (specifically coal) from the mining premises to various points as per the requirements of NALCO, their client. The key points of contention were whether this service should be classified under “Renting of transport vehicles with operator” (SAC 996601) and what GST rate should apply.

Background and Arguments:

Utkal Coal Mining India Private Limited operates under a Coal Mining Agreement (CMA) with NALCO, acting as a Mine Developer and Operator (MDO). Among the services provided under this agreement, one significant aspect is the transportation of coal from the mining stockyard to railway sidings or delivery points designated by NALCO. This transportation is carried out using vehicles supplied with drivers by Utkal Coal Mining India Private Limited.

Applicant’s Position:

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