Case Law Details
In re KSC Buildcon Private Limited (GST AAR Rajasthan)
Applicant is providing a support to M/s AMP in extraction of mineral and therefore it is a kind of supplying support Service. Whereas the supply cannot be categorized as that of goods due to the fact that minerals and mining site both are under the ownership of M/s AMP throughout agreement and post-agreement too. The applicant is just facilitating/supporting M/s AMP in extraction of the mineral. Thus the activity undertaken by the applicant is a ‘Service’ under CZGST Act, 2017.
Whereas, the mineral extracted by the applicant from the mining site is no doubt a ‘goods’ which is extracted from the land but since the applicant do not have any ownership of the said mineral and land before the agreement, in duration of agreement and post agreement therefore the activity is just a service to M.s AMP.
In view of the above, we find that the Applicant is providing supporting service related to mining. The said service is classifiable under HSN 998622. The rate of GST on the said service is 18% (CGST 9% + SGST 9%) as provided under the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended).
FULL TEXT OF ORDER OF BEFORE THE AUTHORITY OF ADVANCE RULING, RAJASTHAN
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