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TMI Blog2020 (3) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... tola for which royalty is being paid. 2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of Section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 3. As per the said sub-section (2) of Section 97 of the CGST/SGST Act, 2017 advance ruling can be sought by an applicant in respect of : (a) Classification of any goods or services or both, (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of input tax credit of tax paid or deemed to have been paid, (e) Determination of the liability to pay tax on any goods or services or both, (f) Whether the applicant is required to be registered? (g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received from the applicant; (f) The vehicles registered with Mineral Department shall only be allowed to transport accessory minerals (sand, gravel, boulder); (g) GST, Income Tax TCS and other fees shall be paid by the applicant, however GST @ 18% is payable; (h) Validity of said agreements/contracts is up to 30-6-2018. 8. In the present case we are not deciding any wider question but restricting our conclusion to the facts and circumstances which were filed for our consideration in the application. Now we proceed by taking the issue one by one : (A) Classification of service provided by GMVN to Shri Kuldeep Singh Butola in terms of Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017. (A.1) on perusal of Uttarkhand Upkhanij Chugan Neeti 2016, we find that GMVN has been allotted mineral areas in revenue rivers of Garhwal region to extract accessory minerals (sand, gravel, boulders) after payment of application fees and fulfilment of administrative/legal formalities. After allotment of said area, GMVN issue tender for extraction of accessory minerals (sand, gravel, boulders) from specified areas. In case of unsuccessful bid for first and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f GST on given services provided by the State of Uttarakhand or GMVN to the applicant for which royalty is being paid. (C.1) In this context relevant legal provisions are extracted below : Notification No. 11/2017-Central Tax (Rate), dated 28th June, 2017 G.S.R.... (E). - In exercise of the powers conferred by sub-section (1) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby notifies that the central tax, on the intra-State supply of services of description as specified in column (3) of the Table below, falling under Chapter, Section or Heading of scheme of classification of services as specified in column (2), shall be levied at the rate as specified in the corresponding entry in column (4), subject to the conditions as specified in the corresponding entry in column (5) of the said Table - S. No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition 1 2 3 4 5 17 Heading 99 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x charged on goods (other than on ships, vessels including bulk carriers and tankers) has not been taken (via) Leasing or renting of goods Same rate of central tax as applicable on supply of like goods involving transfer of title in goods (viii) Leasing or rental services, with or without operator, other than (i), (ii) (iii), (iv), (v), (vi), (vii) and (via) above 9 - (C.2) On perusal of aforesaid table, we find that description of service i.e. "Licensing services for the right to use minerals including its exploration and evaluation" undertaken by the GMVN does not cover under Serial No. 17(i) to 17 (via) of the said notification, therefore the service in question falls at residual Entry (viii) of Serial No. 17 of said Notification which attract GST @ 18% [9% CGST + 9% SGST] as on date. Accordingly we observe that the rate of GST shall be 18% on said services provided by GMVN to the applicant for which royalty is being paid. 9. The applicant has also furnished Advance Ruling passed by Haryana & Chhattisgarh Authorities in support of their contention. In this context we perused the said Rulings and find that one of the issues i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of Information Technology software. 9 - (iii) Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. Same rate of central tax as on supply of like goods involving transfer of title in goods (iv) Any transfer of right in goods or of undivided share in goods without the transfer of title thereof. Same rate of central tax as on supply of like goods involving transfer of title in goods (v) Leasing of aircrafts by an operator for operating scheduled air transport service or scheduled air cargo service by way of transaction covered by clause (f) paragraph 5 of Schedule II of the Central Goods and Services Act, 2017. Explanation.- (a) "operator" means a person, organization or enterprise engaged in or offering to engage in aircraft operations; (b) "scheduled air transport service" means an air transport service undertaken between the same two or more places operated& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate to the issue in hand. But it is settled position that the service in question does not fall at Serial No. 17(i) to 17(v) of the said notification. We further observe that the service in question is also not covered at Serial No. 17(vi) to 17(viia) of the said notification. In this context, our view gets further strengthened on pursuing the order dated 25-3-2019 passed by Rajasthan Advance Ruling Authority on the same issue in the case of M/s. Wolkem Industries Ltd [2019 (24) G.S.T.L. 484 (A.A.R. - GST)I. wherein it was held that service in question falls at (viii) of Serial No. 17 of Notification No. 11/2017 (as amended from time to time) which attracts GST @ 18% (9% CGST+ 9% SGST). Thus we observe that service in question shall fall under residual Entry 17(viii) of the said notification which attract GST @ 18% as on date. ORDER 13. In view of the above discussion and findings we hold as under : (i) The services rendered by GMVN is covered under Serial No. 257 of Annexure appended to Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017 (amended from time to time) as "Licensing services for the right to use minerals including its exploration and evaluation". (ii) T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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