Case Law Details
Case Name : In re M/s Vinayak Stone Crusher (GST AAR Rajasthan)
Related Assessment Year :
Courts :
AAR Rajasthan Advance Rulings
Become a Premium member to Download.
If you are already a Premium member, Login here to access.
Sponsored
In re M/s Vinayak Stone Crusher (GST AAR Rajasthan)
a. The service provided by the State of Rajasthan to the applicant for which royalty is being paid is classifiable under 997337.
b. The rate of GST on service provided by the State of Rajasthan to the applicant for which royalty is being paid is 18% (SGST 9% +CGST 9%).
c. As the applicant is recipient of the services provided by the State of Rajasthan he is liable to pay GST on reverse charge basis und
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Sponsored
Kindly Refer to
Privacy Policy &
Complete Terms of Use and Disclaimer.
now i can pay royalty on rcm of 2017- upto dec 2018 5% as applicable rate of goods
Before looking in to this matter we first would like to understand minerals which could be regulated by the State Government under the MMDR Act,1957.
After enactment of the MMDR Act,1957 solid minerals containing mineral contents specified by the Central Government for the minerals under the MMDR Act,1957 has been vested in to the Government and royalty is prescribed being the share of the Governments.
Dead rent is prescribed restricting unwanted holding of the mineralised zone which containing minerals vest in Government and therefore have the interest of the generality.
Minerals which does not vest in Government and rights still vest in private persons under Section 3 (e) of the MMDR Act,1957 under the definition of minor minerals specified in term of building stone, gravels, ordinary clay and ordinary sand and there extractions up to the limits prescribed under Section 3 (1)(b) of the Mines Act,1952 is free from any regulation.
The Minor Minerals Concessions Rules prescribed by the State Government giving effect to the directions of the Central Government prescribed under the MMDR amendments Act, 1957 the Act No 56 of 1972 which says that State Government should assume powers authorising investigation for minerals (vest in Government) in the area in which minerals vest in private persons.
Therefore regulation under the Minor Minerals Concessions Rules for the building stone, gravels, ordinary clay and ordinary sand is a service by the State Government to the Central Government and it could not be asked paying royalty and other impositions prescribed under Section 9 and sub sections 9 of the MMDR Act,1957 for the minerals vest in private persons.
The whole excercise under the Minor Concessions Rules is prescribed providing conservation to the minerals vest in Government and therefore it is the service to protect property vest in Government by the Government and therefore could not be treated service to the lessee of the Building stone, Gravels, Ordinary Clay and Ordinary Sand or the minerals specified under Section 3 (1)(b) of the Mines Act,1952.
RCM ON ROYALTY
CAN WE TAKE LIKE VAT SET