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TMI Blog2019 (1) TMI 1848X X X X Extracts X X X X X X X X Extracts X X X X ..... d company and is registered under the provisions of Haryana Goods and Services Tax Act, 2017 and Central Goods and Services Tax Act, 2017 with GSTIN-06AAFCK6916K129. 2. The applicant is engaged in the business of mining of minerals (Stones along with associated minor minerals) in the State of Haryana. The applicant has been awarded with one mining contract from the Haryana State Government in respect of mineral mines of "Stone along with 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 extrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... officer that as per section 9(3) of the CGST/HGST Act, 2017, GST is payable on the royalty amount under RCM by the) recipient of such services. 6. The concerned officer further stated that as per advance ruling in the case of M/s. Pioneer Partners, Pichopa Kalan (Bhiwani) = 2018 (9) TMI 1477 - AUTHORITY FOR ADVANCE RULING, HARYANA, the services for the right to use minerals including its exploration and evaluation, 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 involv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The sub section (1) of section 9 of the CGST Act, 2017 states that:- "Subject to the 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." 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 act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the said supply of services is payable according to the entry at sr. no. 17 of the table in said notification. 13. 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 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 un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the applicant is consideration against the transfer of right to use minerals including its exploration and evaluation as per the lease granted by the Government to the applicant. Further, the said services being covered in entry at Sr. No. 17 (viii) of the table in notification no. 11/2017-CT (Rate) dated 28.06.2017. 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. 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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