In re Geeta Rani Mohanty (GST AAR Odisha)
In the case of Geeta Rani Mohanty (GST AAR Odisha), the applicant, M/s. Geeta Rani Mohanty, filed an application for advance ruling under Section 97 of the CGST Act, 2017 and Section 97 of the Odisha GST Act, 2017. The applicant, engaged in the mining and supply of iron ore with its principal place of business in Barbil, Odisha, sought clarification on the GST implications regarding the stamp duty and registration fees paid for registering a lease deed related to mining activities.
The applicant raised three specific questions:
- Whether GST is leviable on the stamp duty and registration fee paid for registering a lease deed.
- Whether the nil rate of tax under Serial No. 47 of exemption notification 12/2017-CT applies to the stamp duty and registration fee paid for registering a mining lease deed.
- Whether the stamp duty and registration fee should be considered as consideration for a mining lease service.
The application was filed amidst ongoing proceedings initiated by the Audit Commissionerate, CGST Bhubaneswar, which had issued an audit observation demanding GST payment under reverse charge mechanism on the amount paid as stamp duty and registration fees. The applicant contested this demand, arguing that GST imposition on stamp duty would lead to a cascading tax effect, contrary to basic taxation principles. They also cited exemption notifications that they believed rendered the government services provided for registration exempt from GST.
