Case Law Details
In re Kayden Infra Engineering Private Limited (GST AAR Haryana)
(a) Since, the applicant is the person responsible to pay GST on the Mineral mining rights in lieu of which Royalty is being paid, at what GST rate should it discharge its GST liability whether at the rate of 5% (Rate applicable on extracted raw material or 18% (Residual category)?
Ruling
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. Further, the said services being covered in entry at Sr. No. 17 (viii) of the table in notification no. 11/2017-CT (Rate) dated 28.06.2017. Being so, the rate of tax applicable on such services, as provided therein, shall be the same rate of tax as applicable on supply of like goods involving transfer of title in goods. The goods involved being classifiable under tariff heading 2516, GST @ 5% (2.5% Central Tax + 2.5% State Tax) is payable on the said goods and likewise on the services involved in question.
(b) In case the applicable GST rate is 5%, whether the applicant could adjust its future GST liability, out of excess GST paid on such Mineral Mining Rights at the rate of 18% in the past?
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