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TMI Blog2019 (3) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... cation number 11/2017-CT (Rate) dated 28.06.2017. The applicant is liable to discharge tax liability under reverse charge mechanism vide N/N. 13/2017-CT (Rate), dated 28.06.2017 (as amended from time to time) of the CGST Act, 2017. The activity undertaken by the applicant attracts 18% GST (9% CGST+ 9% SGST). - AAR No. RAJ/AAR/2018-19/34 - - - Dated:- 15-2-2019 - SHRI J.P.MEENA AND SHRI HEMANT JAIN MEMBER Present for the applicant: Mr. Yash Dhadda, C.A. (Authorised Representative) Note : Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2007 in order to obtain mining lease of soapstone and dolomite in village Piparch , Tehsil Badgon, District: Udaipur. That a document named Purak Savinda dated 08-06-2017 was executed by the applicant on stamp paper wherein the period of mining lease was extended up to 14-6-2028. In the said document it is specified that given mining lease is governed by The Rajasthan Minor Mineral Concession Rules, 2017. The said Rules are actually governed by Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957 (Central Act No. 67 of 1957). c. That for the purpose of collection of royalty on given minerals, the State Government has awarded Excess Royalty Collection Contracts (hereinafter known as ERCC) wherein by virtue of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all under the residual entry at serial no. 17(viii). 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. That the minerals which are extracted from the mine are classifiable under Tariff Heading 2518 and leviable to GST@ 5%. g. Additional Submission: I. That the entry at serial no. 17 has in notification number 11/2017CT (Rate) has been revised with effect from 01.01.2019. II. That now, the serial no. 17(viia) has been added and accordingly serial no. 1 7(viii) has been amended. III. In light of various supreme Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the case may be decided at the earliest. 4. COMMENTS OF THE JURISDICTIONAL OFFICER The jurisdiction officer (Assistant Commissioner, CGST Division-B, 142B, Sector-11, Hiran Magri, Udaipur 313002) has submitted his comments vide letter dated 16.01.2019 which can be summarized as, the activity undertaken by the applicant is covered under Serial Number 258 of chapter head 997338 i.e. Licensing services for right to use other natural resources including telecommunication spectrum which is broadly covered in 9973 i.e. licensing or rental services with or without operator. As per the Notification No. 11/2017 dated 28-06-2017 further amended vide Notification No. 27/2018 dated 31/ 12/2018 the applicable GST rate on the activit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecipient. The said service is classifiable under Licensing services for the right to use minerals including its exploration and evaluation at Serial No. 257, Heading 9973, Group 99733, sub heading 997337 of annexure Scheme of classification of Services to Notification No. 11/2017-CT (Rate) dated 28.06.2017. d. The relevant portion of the serial no. 17 for item (viii) of Notification No. 11/2017-CT (Rate), dated 28.06.2017(as amended from time to time) is reproduced as below: Sl.No. Chapter, Section or Heading Description of service Rate (per cent.) Condition (1) (2) (3) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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