Levy of GST— In the instant case, the applicant has filed an application seeking advance ruling as to whether GST is required to be paid by the Applicant on Royalty amount under RCM or not; and whether Royalty amount is also required to be added in the value of supply of Service as per Section 15 and GST is to be paid on royalty amount, considering the same as part of supply of value.

In the present case, the mining right so granted for mining of soil is covered under the sub heading 997337 which specifies - 'Licensing services for the right to use minerals including its exploration and evaluation'. It is further seen that this gets  covered under entry no. 17 of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017, though the aforementioned service is not covered in any of the specifically mentioned descriptions of -entry no 17, resultantly it qualifies being categorized in the  residual clause / serial number of entry no 17, wherein it has been specified that the rate applicable for such service should be of same rate as applicable for the supply of like goods involving transfer of title in goods.

Held that— 

i. Yes, GST at the applicable rate is payable by the applicant on the royalty amount under Reverse charge mechanism.

ii. Royalty amount is also includible while arriving at the transaction value for payment of applicable GST on the supply of aforesaid services rendered by the applicant to the main contractor, as stipulated under section 15 of CGST Act, 2017.