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TMI Blog2019 (2) TMI 922X X X X Extracts X X X X X X X X Extracts X X X X ..... f mining of Boulders in the State of Haryana. The said products are classifiable under Tariff Heading 2516 and are leviable to GST on their supply at the rate of 5%. 3. That the applicant has been granted a mining lease for extracting "Stone along with associated minor minerals" at village "Mankawas-2", Distt. Bhiwani, Haryana by the State Government on various terms and conditions as per the LOI and Lease deed (Annexure-4). 4. That further in accordance with the Part-Ill ("Covenants of the Lessee") in para 3(a) of the Lease deed it has been agreed that the bid amount of Rs. 20.99 cr shall become "Annual Dead Rent" as amount agreed to be paid by lessee and the rate of same shall increase depending upon the terms of auction. Further, 3 r p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the person liable to discharge GST on the same. Accordingly, the applicant has framed the following questions:- Question 1: What shall be the classification of service provided by the State of Haryana to M/s. United Mining Corporation in accordance with Notification No 11/2017-CT (Rate) dated 28.06.2017 read with annexure attached to it? Question 2: Whether the said service can be classified under chapter number 9973 specifically under service code 997337 as "Licensing services for the right to use minerals including its exploration and evaluation" or as any other service under the said chapter? Question 3: What shall be the rate of GST on given services provided by State of Haryana to M/s. United Mining Corporation for which royalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication has highlighted the following relevant provisions of the law:- 1. Section 9 of the CGST Act 2017 which is charging section of Goods & Services Tax states: 9(1) Subject to provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person. 2. The term "services" has been defined under section 2(102) "services" means anything ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classification of services shows that services of right to use natural resources classify under tariff 9973 and since description of services under serial no. 17 (i) to (v) does not cover such services of right to use minerals therefore, it would fall under the residual entry at serial no. 17(viii). Being so, the rate of tax applicable on such services, as provided therein, shall be the same rate of tax as applicable on supply of like goods involving transfer of title in goods. 7. That on the basis of above, it is evident that service charge by way of annual dead rent or royalty paid for services of granting right to use mineral would attract GST rate as applicable on supply of mineral which is being extracted through such mining. 8. Tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specifically under service code 997337 as "Licensing services for the right to use minerals including its exploration and evaluation" or as any other service under the said chapter? 3. What shall be the rate of GST on given services provided by State of Haryana to M/S United Mining Corporation for which royalty is being paid? Ruling on Q. No. 2 and 3. The services for the right to use minerals including its exploration and evaluation, as per Sr. No. 257 of the annexure appended to notification no. 11/2017-CT (Rate), dated 28.06.2017 is included in group 99733 under heading 9973. Hence it attracts the same rate of tax as on supply of the like goods involving transfer of title in goods. As per notification no. 1/2017-CT (Rate), dated 28.06 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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