The contributions to National Mineral Exploration Trust and District Mineral Foundation qualify as consideration towards supply of mining service by Andhra Pradesh Government and they being includible under value of supply, are chargeable to GST under the Reverse Charge Mechanism in the hands of the applicant, i.e., service recipient.
Valuation of supply— In the instant case, an individual proprietor and a mining lease holder was granted mining lease rights for " LATE RITE" mineral by Government of Andhra Pradesh over an extent of 10 hectares of land of Reserve Forest in East Godavari District.
The applicant seeks clarification on two issues,-
a) Whether the contribution to National Mineral Exploration Trust (NMET) and District Mineral Foundation (DMF) would qualify as consideration towards supply of mining service.
b) If so whether it is consequently included for purpose of value of supply chargeable to GST under the Reverse Charge Mechanism in the hands of the applicant, i.e., service recipient.
As per Entry No. 5 of Notification No. 13/2017-Central Tax (rate), GST on services supplied by Central Government State Government or Local Authority, to a business entity needs to be paid by such business entity under RCM.
Held that— The contributions to National Mineral Exploration Trust (NMET) and District Mineral Foundation (DMF) qualify as consideration towards supply of mining service by Andhra Pradesh Government and they being includible under value of supply, are chargeable to GST under the Reverse Charge Mechanism in the hands of the applicant, i.e., service recipient.
The contributions to National Mineral Exploration Trust and District Mineral Foundation qualify as consideration towards supply of mining service by Andhra Pradesh Government and they being includible under value of supply, are chargeable to GST under the Reverse Charge Mechanism in the hands of the applicant, i.e., service recipient.
Valuation of supply— In the instant case, an individual proprietor and a mining lease holder was granted mining lease rights for " LATE RITE" mineral by Government of Andhra Pradesh over an extent of 10 hectares of land of Reserve Forest in East Godavari District.
The applicant seeks clarification on two issues,-
a) Whether the contribution to National Mineral Exploration Trust (NMET) and District Mineral Foundation (DMF) would qualify as consideration towards supply of mining service.
b) If so whether it is consequently included for purpose of value of supply chargeable to GST under the Reverse Charge Mechanism in the hands of the applicant, i.e., service recipient.
As per Entry No. 5 of Notification No. 13/2017-Central Tax (rate), GST on services supplied by Central Government State Government or Local Authority, to a business entity needs to be paid by such business entity under RCM.
Held that— The contributions to National Mineral Exploration Trust (NMET) and District Mineral Foundation (DMF) qualify as consideration towards supply of mining service by Andhra Pradesh Government and they being includible under value of supply, are chargeable to GST under the Reverse Charge Mechanism in the hands of the applicant, i.e., service recipient.