Case Law Details
In re PKR Projects and Engineers (GST AAR Andhra Pradesh)
The applicant sought to know whether such a royalty paid/dead rent on account of mining rights was liable to tax in the hands of applicant under the reverse charge mechanism or not and If so, what is the rate of GST- payable on the royalty/ dead rent?
The activity undertaken by the applicant is classifiable under Heading 9973 (Leasing or rental services, with or without operator), as mentioned in the annexure at Serial No. 257 (licensing services for the right to use minerals including its exploration and evaluation) and sub heading 997337 of notification number 11/2017-CT (Rate) dated 28.06.2017. The applicant is liable to discharge tax liability under reverse charge mechanism vide Notification no.13/2017-CT (Rate), dated 28.06.2017 (as amended from time to time) of the CGST Act, 2017.
The activity undertaken by the applicant falls at item (viii) of serial no. 17 of notification no.11/2017, which was further amended vide Notification No. 27/2018-Central Tax (Rate) dt:31-12-2018 and attracts 18% GST (9% CGST+ 9% SGST) w.e.f. 01.01.2019.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, ANDHRA PRADESH
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