Classification of service of granting of license by Govt to extract minerals

In re M/s. NMDC Limited (GST AAR Madhya Pradesh)

In respect of the first question raised by the Applicant regarding the classification of service by way of granting of license to extract minerals, we rule that the said service shall be classified under Tariff Heading 99733.

In respect of the second question raised by the Applicant regarding the taxability or otherwise of the additional contributions made to DMF and NMET, we rule that the said contributions are nothing but additions to the royalty payable for the original supply itself, and is therefore liable to be added to the value of the original supply and treated accordingly for the purposes of GST.

Read Also AAAR: GST payable under RCM on contributions to DMF & NMET: AAAR

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

Please become a Premium member. If you are already a Premium member, login here to access the full content.