Hon’ble GSTAT has admitted an appeal challenging levy of GST on royalty paid to Government under mining lease arrangements, where the lower appellate authority had held such grant of mining rights to be a taxable “leasing/rental service” under Heading 9973 (Notification 11/2017-CT(R)) and denied refund of tax paid under protest.
The appellant argued that royalty is not exigible to GST, and sought to distinguish the 9-Judge Bench ruling of the Hon’ble Supreme Court in Mineral Area Development Authority v. SAIL on the ground that it dealt with royalty under the MMDR Act, 1957 (Entry 54, List II) and not royalty payable under a different statutory regime (Entry 53, List I) – an issue also stated to be pending before the Supreme Court in a separate writ petition, with a stay on recovery earlier granted in another matter.
Finding a prima facie case made out, the Bench has admitted the appeal, directed the appellant to file details of identical matters pending before other State Benches of GSTAT.
Share this content:
