Case Law Details
In re NMDC Limited (GST AAR Karnataka)
The applicant filed the instant application, for rectification of ruling, alleging that the authority has not ruled in the order as to whether the contributions towards DMF & NMET amount to supply in terms of Section 7 of the CGST Act 2017 or not and also the authority erred in considering the said payments as single payment whereas they are two different transactions.
The authority, in the aforesaid AAR Order No. 69/2019 dated 21.09.2019, ruled that the contributions made towards DMF & NMET are not separate transactions but are on account of the supply made & are directly linked to the royalty payable; also computed as a fixed percentage of royalty and hence are treated as part of the consideration payable for the Licensing Services for right to use minerals including exploration and evaluation.
In view of the above, it is clearly evident from the aforesaid AAR Order that the authority has considered all the submissions and issued the proper order. Hence there is no error / apparent mistake on the face of the record, in the said order and hence the instant application is not valid and is liable for rejection, in terms of Section 98(2) of the CGST Act 2017.
Read Original Order in above Case – 18% GST Payable on royalty paid in respect of Mining Lease
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