9911796707
TMI Blog2019 (3) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 1, Madri, Udaipur, Rajasthan 313001, (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2)(a), (b) and (e), given as under : a. classification of goods and/or services or both; b. applicability of a notification issued under the provisions of the act; e. determination of the liability to pay tax on any goods or services or both. Further, the applicant being a registered person (GSTIN is 08AAECA7970L2Z5, as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. 1. SUBMISSION A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to mining lease. d. That in this case, the royalty on behalf of the State Government is being collected by M/s. Shivganga Minerals Private Limited (hereinafter known as ERCC Contractor) from the applicant and the valid royalty receipts have been issued in Form 24 prescribed under Rule 44 of the Rajasthan Minor Mineral Concession Rules, 2017. e. That on perusal of above classification shows that the broad heading 9973 covering "leasing or rental services with or without operator" also covers licensing services for right to use intellectual property, natural resources, minerals, etc. in its fold. For the rate of GST applicable to it, a reference to Serial no. 17 of Notification No. 11/2017 is relevant which applies to "leasing or r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fall under entry number 17(iii), (iv) or (viiia) but not (viiii). IV. Royalty or dead rent being paid by the applicant against the mining lease is a service classifiable under HSN 997337 and rate of GST shall be same as applicable on supply of like goods i.e. Soapstone and Dolomite. 2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT a. What is the classification of service provided in accordance with Notification No. 11/2017-CT (Rate) dated 28.06.2017 read with annexure attached to it, by the State of Rajasthan to M/s. Aravali Polyart Private Limited for which royalty is being paid? Whether said service can be classified under 9973 specifically under 997337 as Licensing services for the right to use minerals including its exploration a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se and engaged in the business å of mining of Soapstone and Dolomite. The said minerals (goods) are classifiable under tariff heading 2518 and are leviable to GST on their supply at the rate of 5%. b. The Government provides license to various companies including Public Sector Undertakings for exploration of natural resources like oil, hydrocarbons, iron ore, manganese etc. For having assigned the rights to use the natural resources, the licensee companies are required to pay consideration in the form of annual license fee, lease charges, royalty, etc to the Government. The activity of assignment of rights to use natural resources is treated as supply of services and the licensee is required to pay tax on the amount of consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicant is receiving leasing / licensing services from the government of Rajasthan hence, provisions of reverse charge mechanism are applicable under the Notification No. 13/2017-CT (Rate), dated 28.06.2017 (as amended from time to time) of the CGST Act, 2017. 6. In view of the foregoing, we rule as follows:- RULING A. 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) 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 mecha ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
