Payment of GST for grant of mining lease/royalty by the petitioner shall remain stayed.
GST on Royalty –----The petitioner submitted that the royalty payment is tax and not consideration in the context of the privilege parted by the State allowing the petitioner and others to mine sand. That being the nature of the payment made by the petitioner, the same is not amenable to GST as it is not consideration. The petitioner relied on decision of the Supreme Court in India Cement Ltd. and Others vs. State of Tamil Nadu and Others, wherein, nature of royalty payment was considered and it was opined to be in the nature of tax. A similar controversy is engaging the attention of the Supreme Court in M/s Lakhwinder Singh vs. Union of India & Ors., wherein the Supreme Court has stayed the payment of GST for grant of mining lease/royalty.
Held that:- The Hon’ble High Court listed the matter after two months and directed that until further orders, payment of GST for grant of mining lease/royalty by the petitioner shall remain stayed.
Payment of GST for grant of mining lease/royalty by the petitioner shall remain stayed.
GST on Royalty –----The petitioner submitted that the royalty payment is tax and not consideration in the context of the privilege parted by the State allowing the petitioner and others to mine sand. That being the nature of the payment made by the petitioner, the same is not amenable to GST as it is not consideration. The petitioner relied on decision of the Supreme Court in India Cement Ltd. and Others vs. State of Tamil Nadu and Others, wherein, nature of royalty payment was considered and it was opined to be in the nature of tax. A similar controversy is engaging the attention of the Supreme Court in M/s Lakhwinder Singh vs. Union of India & Ors., wherein the Supreme Court has stayed the payment of GST for grant of mining lease/royalty.
Held that:- The Hon’ble High Court listed the matter after two months and directed that until further orders, payment of GST for grant of mining lease/royalty by the petitioner shall remain stayed.