Do mining operators need to pay GST or Service Tax on …
Days after ruling that royalty paid by mining operators to the government is not a tax and that States have the power to levy cesses on mining and mineral-use activities, the Supreme Court is set to consider whether Goods and Services Tax (GST) or Service Tax is payable on mining royalty?
GST on Mining Royalty post 9 Judge bench SC …
Dispute under GST/service tax and its relevance to 9 judge bench decision: When the Union Government attempted to levy service tax on the mining royalties, it was inter alia agitated stating that 'royalty' is a tax and …
GST on Royalty: Applicability, GST Rate, SAC Code, RCM on Royalty Under …
The GST on royalty income in India is determined based on the rate applicable to goods such as minerals. This means that the same tax rate applicable to minerals—18%— is accepted as the royalty GST rate.. Additionally, individuals who are liable to pay GST under the RCM for royalty should make sure to submit GST invoices in an organized manner.
Supreme Court Reaffirms Royalty is Not a Tax, Dismisses
Summary: The Supreme Court of India, in the case of Karnataka Iron and Steel Manufacturers Association v.Mineral Area Development Authority (Diary No. 38926/2024), dismissed a review petition on September 24, 2024, affirming that royalty is not considered a tax. This petition was filed to challenge an earlier judgment from July 25, 2024, in Mineral Area …
Application of service tax to the Mining Sector – Need …
Federation of Indian Mineral Industries, examines the application of the service tax this sector. The report also suggests ways of alleviating the negative impact of service tax on the mining …
Service Tax on Mining Royalty
Royalty is not a payment in respect of any taxable service at all and it is imposed under Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957 …
GST on Royalty paid under MMDR Act 1957 for right to use
In the case of India Cement Ltd. vs. State of Tamil Nadu, etc. (AIR 1990 SC 85), the actual question before the Hon'ble Supreme Court was the constitutional validity of the cess levied on such royalty. It was held that if royalty is a tax or an imposition or a levy, it is not on land alone but it is a levy or a tax on mineral (land), labour and capital employed in extraction of the …
Can GST and Service Tax be charge on the amount of …
Can GST and Service Tax be charge on the amount of royalty payable to the Government on mining of minerals? Can GST and Service Tax be charge. Case Title. M/s Manu Tractors vs State of UP & 2 Others. ... of GST for grant of mining lease/royalty by the petitioner & the demand notices dated 07.01.2022 and 18.01.2022 under Section 74(1) of the ...
Service Tax on Goods Transport Agency (GTA) – A Guide
Here, the proprietorship firm is liable to pay service tax under reverse charge as it is registered under central excise. The consignment in a single vehicle with freight upto Rs. 1,500 is fully exempted. So, service tax on balance Rs. 5,31,000/- @ 3.09% = 16,408/-
The saga of GST on Ocean Freight… Vaster than the Ocean …
Initially under Service Tax. It appears as if the taxability of Ocean Freight is a magnet of litigation under the Indian Indirect tax regime. ... the levy of GST on ocean freight was challenged in the case of Mohit Minerals vs. UOI. The petitioner, Mohit Minerals P. Ltd. filed a petition with the Hon'ble Gujarat HC on the following grounds ...
TAXABILITY OF MINING SERVICES
Service tax has been imposed on Mining Services i.e., services outsourced for mining of minerals, oil or gas by the Finance Act, 2007 as a separate taxable service with effect from a 1st June, 2007 vide Notification No. 23/2007-ST dated 22.05.2007. The gross amount charged by or gross consideration received by any person being service provider from any …
Constitutionality of GST on royalties for mining leases
Sudipta Bhattacharjee Partner Advaita Legal. Since the expansion of the concept of taxable service under the erstwhile service tax regime (vide introduction of a negative list-based regime in 2012 and legislative amendments in 2016) and now under the goods and services tax (GST), there has been a constant tussle between tax authorities and mining lease holders as …
GST Implications On The Mining Sector
Hence, the department's stand was clarified that there was no separate rate of tax specified under GST for service provided by way of grant of mineral exploration and mining rights, and that such service remained taxable @18% during period July 1, 2017, to December 31, 2018.
Levy of GST on Mining Royalty
Till 01.04.16 only support services provided by the Government were taxable under service tax but with effect from 01-04-16 all the services provided by the Government including the assignment of right to use minerals were brought to service tax under RCM basis except service tax on renting of immovable property. And the service tax department ...
Import of services under Service Tax Act 1994
3.Liability to pay the tax would lie upon the service receiver under Rule 2(1)(d) of service tax rules 1994 i.e. On reverse charge principle. Therefore, if office situated in USA provides the services to M/s PQR in India, the same shall be treated as import of services by applying section 66B and Rule -3 of POPS Rules 2012. Fixed Establishment
GST or Service Tax on Mining Royalty? Supreme Court to …
On July 25, the Supreme Court's nine-judge bench held that royalty payments by mining leaseholders do not constitute a tax. This ruling clarified that while state governments can …
Taxability of Royalty–Unsettled Issue of Service Tax Regime …
The taxability of royalty paid on mining operations is an old issue continuing from the Service tax regime to GST regime. The intelligence officers of DGGSTI, have gathered information from the State Government offices about the exploration of Minerals from the Mining lease and issuing show cause notices for the recovery of Service Tax on royalty paid to the State Government in …
CBIC clarifies services by way of grant of mineral …
(iii) The rate applicable on the service of grant of mineral exploration license and mining lease under Service Tax was also the standard rate of 15.5%. Services under this category have been standard rated in GST at 18% (iv) …
GST and Its Implications on Miniing Sector In India
India currently produces around 89 minerals under different groups, with fuel minerals, metallic minerals, non-metallic minerals, atomic minerals and minor minerals. ... The rate applicable on the service of grant of mineral exploration license and mining lease under Service Tax was also the standard rate of 15.5%. Services under this category ...
service tax – Digest of case laws
can service tax be demanded from service provider if service receiver has paid tax under rcm service provider (individual) has provided supply of man-power service to body corporate in fy 2015-16. ... whether service tax is payable on rcm basis on royalty paid to state government for extracting minerals also please update us regarding the ...
Tax On Mineral Water and Beverage Companies Through Supreme Court…
Levy of Water Tax/Charge On Mineral Water and Beverage Companies Through Supreme Court's Judgment. ... which already exist under the federal/provincial food laws and environmental laws. In the first part of the judgment authored by the former Chief Justice, Mian Saqib Nisar, all provincial governments have been required to issue a ...
Service Tax on Survey and Exploration of Mineral Services
The service tax would be leviable when the service of survey and exploration of minerals is provided by any person to a customer. The survey and exploration may result in locating ores, crude etc. Subsequent to survey and exploration, the mineral is extracted and transported for refining, processing and production. ... The service tax under ...
'Service' – What it Means under the service Tax Provisions
Hence service tax would be leviable on such entry and exit loads. Service tax would also be leviable on fund management activity undertaken by an asset management company (AMC) for which an AMC charges the mutual fund an 'investment and advisory fee', in accordance with provisions contained in the SEBI regulation.
Revisiting Service Tax on Mining Rights: Legal
Since the transfer of immovable property is not subject to service tax, any payments made for acquiring mining rights, which include the right to explore and extract …
Reverse Charge Mechanism in Service Tax | TaxGuru
sir, i charge service tax on of turnover @15% service tax, But my service gives me the payment after applying the provision of standard deduction scheme (under rule 2a(i) ie. i am liable to pay s.tax on 70% of service charge under works contract (repair and maintenance) and and i can also use the reverse charge provision notification no-30/2012, ie-i …
Royalty Vs Tax – Tax on Mineral Rights – Impact on GST Levy?
Royalty Vs Tax – Mineral Rights - One More Litigation Area in GST? Editor: The Nine Member Bench of the Supreme Court in Mineral Area Development Authority & Anr Vs M/s Steel Authority of India & Anr. Etc. (Civil Appeal Nos. 4056-4064 of 1999) decided on 25 th July 2024 through a majority view of 8:1 in a case pertaining to distribution of legislative powers …
Service tax on Mining service
Mining service– Scope[section 65(105)(zzzy)]- Presently, geological, geophysical or other prospecting, surface or sub-surface surveying or map-making services relating to location or exploration of deposits of minerals, oil or gas are leviable to service tax under "survey and …
Royalty Is Not Tax, Royalty Is Contractual Consideration
Parliament does not have legislative competence to tax mineral rights under Entry 54 of List I with being a general entry, since the power to tax mineral rights is enumerated in Entry 50 of List II. Parliament cannot use its residuary powers with respect to that subject matter. The state legislature has the legislative competence under Article ...
Circular No. 164 /20 /2021-GST CBIC-190354/207/2021 …
mining leases is classifiable under Service Code 997337 (licensing services for the right to use minerals including its exploration and evaluation) and attracted, prior to 01.01.2019, the same rate of GST as applicable to minerals, that is, 5% as prescribed against Sl. No. 17, item (viii) of
Power of states to tax mining activities
Q. Is mining royalty a tax? Ans: The Supreme Court, in its decision upholding the power of states to levy tax on mineral rights, observed that royalty set under S.9 of the Mines and Minerals (Development and Regulation) Act 1957 (MMDR Act) does not qualify as tax. Related articles: Mining sector in India; Coal mining in India; Offshore areas ...