Lessee to pay GST on Sale Value of Mineral purchased in E-Auction: SC

By Editor4 Goods and Services Tax Judiciary October 11, 2017

TaxGuru Citation: 2017 taxguru.in 929
Case Name: Samaj Parivartana Samudaya & Ors. Vs State of Karnataka & Ors. (Supreme Court of India)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: Supreme Court of India

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Samaj Parivartana Samudaya & Ors. Vs State of Karnataka & Ors. (Supreme Court of India)

G.S.T. payable on the sale value of the mineral purchased in the e-auction shall be paid by the buyer directly to the lessee and the lessee would be responsible for all compliances as may be required under Act. We further direct that the Monitoring Committee to prepare appropriate proforma and also take steps for carrying proper Tax Identification Number of the respective lessees on the invoices as may be required

Full Text of the Supreme Court Judgment / Order is as follows:-

After hearing the learned counsel for the applicant Shri Huzefa Ahmadi and Shri Shyam Divan, learned amicus curiae, we direct the Monitoring Committee to take necessary action to enable the lessee to claim and obtain input tax credit under the Central Goods and Services Tax Act, 2017. We specifically direct that the G.S.T. payable on the sale value of the mineral purchased in the e-auction shall be paid by the buyer directly to the lessee and the lessee would be responsible for all compliances as may be required under Act.

We further direct that the Monitoring Committee to prepare appropriate proforma and also take steps for carrying proper Tax Identification Number of the respective lessees on the invoices as may be required.

With the aforesaid directions I.A. No.56590 of 2017 is disposed of.
I.A. No.72931 and 83141 of 2017

We have heard Shri Maninder Singh, learned Additional Solicitor General for the Union of India. We have perused the contents of I.A. No.72931 and 83141 of 2017 filed on behalf of the Ministry of Steel and also the additional affidavit filed on behalf of the Ministry of Mines dated 11.09.2017.

In view of the contradictory stand taken in the aforesaid two sets of applications by the Union of India, we would like to know the precise stand of the Union of India and the precise prayer(s) with regard to the ceiling/cap.

Requisite application in terms of the above may be filed on or before 10th October, 2017 when the matter will be taken up next.

List these applications on 10th October, 2017.