9911796707
TMI Blog2019 (7) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... ame except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the RGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / RGST Act would be mentioned as being under the "GST Act". * The issue raised by M/S Vinayak Stone Crusher, Kheda Thakur, Rudawal, Roopwas, Bharatpur, Rajasthan 321402 (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97 (2) (a)(b) given as under : a. classification of any goods or services or both; b. Applicability of a notification iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rajasthan Government, has appointed the Contractor "M/s. Kishore and Party" for collection of Royalty on behalf of Mining Department, The contractor collect the royalty on boulder from the recipient of the boulder. 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 Vinayak Stone Crusher 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 and evaluation or as any other service? b. What is the rate of GST on given servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pur, HQ-Bayana, Bharatpur) has submitted his comments vide e-mail dated 16.04.2019 which can be summarized as under: a. The service provided by the State of Rajasthan to the applicant for which royalty is being paid is classifiable under 997337. b. The rate of GST on service provided by the State of Rajasthan to the applicant for which royalty is being paid is 18% (SGST 9% +CGST9%). c. The service provided by the State of Rajasthan to the applicant for which royalty is being paid is governed by applicability of Notification No 13/2017-CT (Rate) dated 28.06.2017. The applicant is taxable person in this case to discharge GST under reverse charge mechanism. d. The services supplied by State Government of Rajasthan to Excess Royalty Col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f service (Licensing services for the right to use minerals including its exploration and evaluation) wherein the government of Rajasthan is supplier and the applicant is recipient. 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 for Notification No. 11/2017-CT (Rate) dated 28.06.2017. d. The relevant extract of the Annexure of the Notification No. 11/2017-CT (Rate) dated 28.06.2017 is reproduced below:- S.No. Chapter, Section, Heading or Group Service Code (tariff) Service Description 250 Group 99733 Licensing services for the ri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umn (3) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: - Description of Service Rate (per cent.) Condition (3) (4) (5) (viii) Leasing or rental services, with or without operator, other than (i), (ii), (iii), (iv), (v), (vi), (vii) and (viia) above 9 "; f. We further observe that, the applicant 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 of the CGST Act, 2017. The relevant portion of the applicable provisions are as follows:- Sl.No. Category of Supply of Services Supplier of Service Recipient of Service 5 Services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cant for which royalty is being paid is classifiable under 997337. b. The rate of GST on service provided by the State of Rajasthan to the applicant for which royalty is being paid is 18% (SGST 9%+CGST 9%). c. As the applicant is recipient of the services provided by the State of Rajasthan he is liable to pay GST on reverse charge basis under entry number 5 of the Notification No 13/2017-CT (Rate) dated 28.06.2017 and is not covered by exclusion clause number (1) of entry No.5 of the said Notification. d. The services supplied by State Government of Rajasthan to Excess Royalty Collection Contractor (ERCC) by way of assigning the right to collect royalty on behalf of the State Government is exempted with certain restrictions by way of Not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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