GST on Royalty, MMDR, DMF Fund & Reserve Price paid directly to Government

In re Baranj Coal Mines Private Limited (GST AAR Maharashtra)

In the subject case, we find that the applicant (supplier of service) and KPCL (recipient of service) are not related persons and price is the sole consideration for the supply.

Further, from Article 6.1.3 and Article 29.1.2 of the Mining Agreement it is clear that the amounts towards Royalty, MMDR, DMF Fund and Reserve Price are payable by KPCL directly to Government of Maharashtra and which is being paid accordingly by KPCL. <

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