TMI Blog2019 (1) TMI 1848X X X X Extracts X X X X X X X X Extracts X X X X ..... ate government in respect of grant mining contract are classifiable under sub heading 997337 as covered under entry 257 of the annexure appended to the notification No. 11/2017-CT (Rate) dated 28.06.2017. Further, GST on the said supply of services is payable according to the entry at sr. no. 17 of the table in said notification - Since a perusal of classification of services of right to use natural resources classify under tariff 9973 and since description of services under serial No. 17 (i) to (vii) does not cover such services of right to use minerals, therefore, it would fall under the residual entry at serial number 17 (viii). Being so, the rate of tax applicable on such services, as provide therein, shall be the same rate of tax as ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h associated minor minerals at Ramalwas having tentative area of 12.25 hectares in Tehsil Dadri, District Bhiwani, falling in Khasra No. 125/1, Haryana. 3. As submitted by the applicant, he has to pay Royalty or Dead Rent, whichever is higher, to the Haryana Government against securing the mineral extraction rights on monthly basis. Royalty is calculated based upon the quantum of aggregate stone extracted and Dead Rent is the fixed rent (based upon the area on which extraction is permitted) payable by the company irrespective of the quantum of minerals extracted. 4. That in light of the above, the applicant wants to understand what is the applicable rate of GST on the mineral mining rights in lieu of which Royalty is being paid by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, as per serial number 257 of the annexure appended to notification No. 11/2017-Central Tax (Rate), dated 28.06.2017 is included in group 99733 under head 9973. Hence, as per relevant entry of the said notification No. 11/2017-Central Tax (Rate), dated 28.06.2017, it attracts same rate of tax as on supply of the like goods involving transfer to title of goods which as per entry 124 of schedule -I of the notification No. 01/2017-Central Tax (Rate), dated 28.06.2017 read with corresponding notification under HGST Act, is 5% GST (2.5% CGST + 2.5%HGST). Record of Personal Hearing 7. The applicant was accorded the opportunity of personal hearing on 24.12.2018. Sh. Yogesh Singh, Director of the Company and Sh. Ganesh Kanodia, CA app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty 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. 10. The term Services has been defined under section 2(102) of the CGST Act, 2017, as under:- Services means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. 11. In exercise of powers conferred under sub section (1) of section 9 of the CGST Act, 2017, notification No. 11/2017-CT (Rate) dated 28.06.2017 has been issued wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the residual entry at serial number 17 (viii). Being so, the rate of tax applicable on such services, as provide therein, shall be the same rate of tax as applicable on supply of like goods involving transfer of title in goods. 14. As stated by the concerned officer, the goods i.e. Stone along with associated minor minerals mined by the applicant are classifiable under tariff heading 2516. Accordingly, GST @ 5% is applicable on the services of licensing services for the right to use minerals as received by the applicant from State Government. 15. 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 applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The goods involved being classifiable under tariff heading 2516, GST @ 5% (2.5% Central Tax + 2.5% State Tax) is payable on the said goods and likewise on the services involved in question. (b) In case the applicable GST rate is 5%, whether the applicant could adjust its future GST liability, out of excess GST paid on such Mineral Mining Rights at the rate of 18% in the past? Ruling As discussed above, the second question, being not covered in any of the provisions of section 97(2) of CGST/HGST Act, was rejected. It does not warrant ruling from the authority bei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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