GST payable on mining lease Royalty Paid to State Govt under RCM

By Editor4 Goods and Services Tax Judiciary May 17, 2019 3 comments

TaxGuru Citation: 2019 taxguru.in 1225
Case Name: In re M/s Vinayak Stone Crusher (GST AAR Rajasthan)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: Advance Rulings, Rajasthan AAR

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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 under entry number 5 of the Notification No 13/2017-CT (Rate) dated 28.06.2017 and is not covered by exclusion clause number (1) of entry No.5 of the said Notification.

d. The services supplied by State Government of Rajasthan to Excess Royalty Collection Contractor (ERCC) by way of assigning the right to collect royalty on behalf of the State Government is exempted with certain restrictions by way of Notification No.12/2017-Central Tax (Rate) dated 28-6-2017 as amended by Notification No. 14/2018-CT (Rate) dated 26.07.2018, However, the a liable to discharge GST on reverse charge basis.

FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, RAJASTHAN

Note: Under Section 100 of the CGST/ RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/ RGST Act, 2017, within a period of 30 days from the date of service of this order.