In re M/s United Mining Corporation, Village Mankawas (GST AAR Haryana)
Q1. What shall be the classification of service provided by the State of Haryana to M/s United Mining Corporation in accordance with Notification No 11/2017-CT (Rate) dated 28.06.2017 read with annexure attached to it?
A1. The services for the right to use minerals including its exploration and evaluation, as per Sr. No. 257 of the annexure appended to notification no. 11/2017-CT (Rate), dated 28.06.2017 is included in group 99733 under heading 9973. The royalty/dead rent paid/payable to the Government by the applicant is consideration against the transfer of right to use minerals including its exploration and evaluation as per the lease granted by the Government to the applicant.
Q2. Whether the said service can be classified under chapter number 9973 specifically under service code 997337 as “Licensing services for the right to use minerals including its exploration and evaluation” or as any other service under the said chapter?
Q3. What shall be the rate of GST on given services provided by State of Haryana to M/s United Mining Corporation for which royalty is being paid?
Ruling on Q.No. 2 and 3.
The services for the right to use minerals including its exploration and evaluation, as per Sr. No. 257 of the annexure appended to notification no. 11/2017-CT (Rate), dated 28.06.2017 is included in group 99733 under heading 9973. Hence it attracts the same rate of tax as on supply of the like goods involving transfer of title in goods. As per notification no. 1/2017-CT (Rate), dated 28.06.2017 under the CGST Act, 2017 and the corresponding State Tax notification under HGST Act, 2017, Schedule -I the stone boulders extracted by the applicant attract 5% GST (2.5 % CGST+ 2.5% HGST) as covered under HSN 2516 (At Sr. No. 124 of the notification).
