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TMI Blog2019 (8) TMI 1780X X X X Extracts X X X X X X X X Extracts X X X X ..... and evaluation as per the lease granted by the Government to the applicant. The services for the right to use minerals including its exploration and evaluation, as per Sr. No. 257 of the annexure appended to notification no. 11/2017-CT (Rate), dated 28.06.2017 is included in group 99733 under heading 9973. Hence it attracts the same rate of tax as on supply of the like goods involving transfer of title in goods. As per notification no. 11/2017-CT (Rate), dated 28.06.2017 under the CGST Act, 2017 and the corresponding State Tax notification no.- 01/2017 dt. 29-06-2017 under JGST Act, 2017, Schedule -l the iron ore and manganese ore extracted by the applicant attract 5% GST (2.5 CGST+ 2.5% JGST) as covered under HSN 2601 and 2602 (At Sr. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has been granted a mining lease for extracting iron ore and manganese ore at Ajitaburu Iron and Manganese Mines of Ghatkuri Reserve Forest over an area of 46.62 hectares of iron and manganese ore, Dist. Singhbhum West, Jharkhand by the State Government on various terms and conditions as per the LOI and renewed Lease deed dated 01-03-2017. IV. That Royalty on the mineral extracted and dispatched at the rate as published by the Indian Bureau of Mines in its website is paid on a monthly basis. V. That GST on the Royalty is being paid by the applicant under Reverse Charge Mechanism as per Section 9 of the CGST Act,2017. VI. That in accordance to the said renewed lease deed dated 01-03-2017 the applicant is required to deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esults in a supply of goods or services or both, within the meaning of that term. 4. From the aforesaid provisions of Advance Ruling it is observed that the Applicant is eligible to seek Advance Ruling under Sub-Para (e) i.e determination of the liability to pay tax on any goods or services or both; of Section 97(2) of the CGST/SGST Act, 2017. 5. The Applicant with regard to question has interpreted and submitted that :- 1. That it is stated and submitted that the State Government grants mining rights for extraction of various minerals like iron ore lumps and iron ore fines 26011140, 26011110 etc to business entities. 2. That the business entities are required to discharge GST on a reverse charge basis for the mining rights gra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he rate applicable for such service should be of same rate as applicable for the supply of like goods. The rate of tax on iron ore lumps and iron ore fines 26011140, 26011110 are leviable to GST on their supply at the rate of 5%). Therefore, reverse charge should be paid at the rate of 5% on royalty. 6. Personal Hearing Proceedings: The Personal hearing of the applicant's Representatives as well as the concerned Jurisdictional Officer was conducted and concluded on 18-07-2019. 7. Findings Discussions: We have considered the submissions made by the Applicant in their application for Advance Ruling as well as the submissions made by the HUF representative during Personal Hearing. We also considered the questions/issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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