Uttarakhand Authority of Advance Ruling (AAR) observes that Licensing services for the right to use or extract minerals including its exploration and evaluation are classifiable under Service Code 997337, covered under Sr. No. 257 of Annexure appended to Notification No. 11/2017-Central Tax (Rate).
The M/s Garhwal Mandal Vikas Nigam (GMVN) services rendered classified under service code (Tariff) 997337 as “right to use minerals including its exploration and evaluation” and the said services rendered by M/s GMVN to the applicant attract GST @18% to the applicant, Kuldeep Singh Batola during the period July 1, 2017, to December 31, 2018.
The applicant sought the advance ruling on the GST rate applicable to the licensing services for the right to use minerals including its exploration and evaluation.
The Authority of Advance Ruling (AAR) consisting of the members Vipin Chandra and Amit Gupta ruled that the service in question provided during the period 01.07.2017 to 31.12.2018 attract GST at the same rate of central tax as on supply of like goods involving the transfer of title in goods attract 5% GST the said service attract GST @18%.
“We find that the issue of classification and applicable tax rate (on the date of passing the advance ruling) has already been decided by us vide ruling 04/2019-20 dated 12.07.2019 in the applicant’s own case wherein it was held that services rendered by M/s GMVN fall under residual entry 17(viii) covered under service code (Tanff) 997337 of serial no 257 of annexure appended to Notification 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time) as ” right to use minerals including its exploration and evaluation” and the said services rendered by M/s GMVN to the applicant attract GST 18% (as on date), however, the applicant has specifically sought advance ruling regarding rate of GST applicable on the said service during the period 01.07.2017 to 31.12.2018,” the ruling said.
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