AAR: Rules on GST applicability on ‘Royalty' for mining lease under reverse charge mechanism

Gujarat AAR rules that royalty paid by applicant in respect of mining lease under ‘Licensing services for the right to use minerals including its exploration and evaluation’ is subject to levy of GST @18% under reverse charge basis vide residual entry No. (viii) of the Notification No. 11/2017-(Rate); Observes that the applicant enters into Quarrying lease/license agreement with Govt of Gujarat, where the Govt. provides the licensing service for the right to use...