9911796707
TMI Blog2019 (3) TMI 1849X X X X Extracts X X X X X X X X Extracts X X X X ..... T Act 2017, Notification No. 11/2017-CT (Rate) dated 28.06.2017 has been issued which notifies the Central Tax, on Intra-State supplies of service description along with Tariff Heading in accordance with the scheme of classification is specified which are subject to specific conditions. The service in question is licensing services for right to use minerals and not leasing or renting of goods and thus is not covered under Sr. No.17 (viia). Therefore, it would fall under the residual entry at Sr. No. 17 (viii). Being so, the rate of tax applicable on such services, as provided therein, shall be 9% CGST and 9% SGST. - HAR/HAAR/R/2018-19/42 - - - Dated:- 1-3-2019 - SANGEETA KARMAKAR AND MADHUBALA, MEMBER Present for the Applicant : Sh. Yash Dhadda (C.A) 1. Factual Background: 1.1 As per submission of facts, M/s. Sainik Mining And Allied Services Ltd, is a private limited company registered under the provisions of the Central Goods and Services Tax Act 2017 read with the provisions of the Haryana State Goods and Services Tax Act 2017 (hereinafter known as the Assessee/Applicant ). 1.2 That applicant is engaged in business of mining of Boulder in the Stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion No. 11/2017-CT (Rate) dated 28.06.2017 read with annexure attached to it, by the State of Haryana to M/s. Sainik Mining And Allied Services Ltd., 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 services provided by State of Haryana to M/S Sainik Mining and Allied Services Ltd. for which royalty is being paid? 2. Record of Personal Hearing: 2.1 Personal hearing in the case was conducted on 20.06.2018 which was attended by Sh. Yash Dhadda, C.A, (POA). The applicant had reiterated the submissions made in their application. a. In continuation to the submissions made earlier they further submitted that the Entry at Sr. No. 17 in Notification No. 11/2017-CT (Rate) has been amended vide Notification No. 27/2018-CT (Rate) dated 31.12.2018 and made effective from 01.01.2019. b. That now Sr. No.17 (viia) has been added and accordingly the Sr. No. 17(viii) has been amended. The revised Sr. No 17 of the said notification is now read as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to goods. The minerals in question are also goods and since these rights have been given in respects of given minerals only, hence for the purpose of GST rate, the given service can fall under Entry No. 17 (iii), (iv) or (viia) but not (viii). g. That in light of aforesaid facts and precedents it is contended that royalty or dead rent being paid by the applicant against mining lease is a service classifiable under HSN 997337 and rate of GST shall be same as applicable on supply of like goods i.e. at 5% (for boulders). 3. Discussion and finding of the authority: For the purpose of understanding the questions involved, the following relevant provisions of the law is being discussed below: 3.1 Section 9 of the CGST Act 2017 which is charging section of Goods Services Tax states:- 9(1) Subject to 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 20%, as may be notified by the Government on the recommendations of the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Heading 9973 (leasing or rental services with or without operator) (vii) time charter of vessels for transport of goods 2.5 Provided that credit of input tax charged on goods (other than on ships vessels including bulk carriers and tankers) has not been taken [please refer to Explanation No.(iv)] (viia) 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 (viia) above 9 - h. As is evident from above, that the service in question is licensing services for right to use minerals and not leasing or renting of goods and thus is not covered under Sr. No.17 (viia). Therefore, it would fall under the residual entry at Sr. No. 17 (viii). Being so, the rate of tax applicable on such services, as provided therein, shall be 9% CGST and 9% SGST 4. Advance ruling under section 98 of the CGST/HGST Act 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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