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First SC Order on GST: Lessee should collect GST on Sale Value of Mineral purchased in the E-Auction & can Claim IPT [Read Order]

After hearing an amicus curies filed by Samaj Parivartana Samudaya & Ors, the Supreme Court of India directed that the buyer of the mineral purchased in the e-auction shall pay Goods and Services Tax (GST) on the sale value directly to the lessee, who is responsible for all compliances under the Central Goods and Services Tax Act, 2017.

The Apex Court, while delivering the first verdict on the new Goods and Services Tax law, directed the Monitoring Committee to take necessary action to enable the lessee to claim and obtain input tax credit under the Central Goods and Services Tax Act, 2017.

A bench comprising Justices Ranjan Gogoi, Abhay Manohar Sapre and Navin Sinha observed that “We specifically direct that the G.S.T. payable on the sale value of the mineral purchased in the e-auction shall be paid by the buyer directly to the lessee and the lessee would be responsible for all compliances as may be required under Act. We further direct that the Monitoring Committee to prepare appropriate proforma and also take steps for carrying proper Tax Identification Number of the respective lessees on the invoices as may be required.”

Read the full text of the Order below.

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