Page 104 - GSTL_30th April 2020_Vol 35_Part 5

590 GST LAW TIMES [ Vol. 35
(b) Situation will remain same as (a) above and will attract GST under
reverse charge mechanism.

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2020 (35) G.S.T.L. 590 (A.A.R. - GST - Goa)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST, GOA
Shri J.K. Meena, Member (Central Tax) and Smt. Sarita S. Gadgil,
Member (State Tax)
IN RE : COSME COSTA & SONS

Advance Ruling No. GOA/GAAR/4/2019-20/3118, dated 28-2-2020
Royalty - Mining lease - Classification - Rate of GST - Royalty is a
charge by State Government in lieu of consideration of the exploitation and
extraction of mineral resources by lessee - Payment of royalty is a statutory
levy in accordance with provisions of Mines and Mineral (Development and
Regulation) Act, 1957 against licensing services by the Government for right to
extract minerals - Classifiable under SAC Code 9973 37 and subject to levy of
GST @ 5% till 31-12-2018 and thereafter @ 18% under Reverse Charge Mecha-
nism in terms of Entry No. 17 of Notification No. 11/2017-C.T. (Rate). [paras 7.3,
9.1]
Mining lease - Contribution to District Mineral Foundation (DMF),
National Mineral Exploration Trust (NMET) and Goa Mineral Ore Permanent
Fund Trust (GMOPFT) - Applicant being engaged in mining and extraction of
iron ore in Goa, its activities squarely fall under the definition of ‘business’ -
Contributions made to DMF, NMET and GMOPFT in the course of further-
ance of their business only, there being a compulsion to make payment to the
said trusts in proportion to the amount of royalty and sale proceeds - Classifi-
able under SAC Code 9973 37 and subject to levy of GST @ 5% till 31-12-2018
and thereafter @ 18% under Reverse Charge Mechanism in terms of Entry No.
17 of Notification No. 11/2017-C.T. (Rate) - Section 2(17) of Central Goods and
Services Tax Act, 2017. [paras 8.3, 9.1]
Ruling in favour of department
CASE CITED
Bai Mamubai Trust v. Suchitra — 2019 (31) G.S.T.L. 193 (Bom.) — Referred ................................ [Para 4.6]
REPRESENTED BY : Shri Abhinav Srivastava, Partners, for the Assessee.
[Order]. - Proceeding : The present application has been filed under Sec-
tion 97 of the Goa Goods and Services Tax Act, 2017 and the Central Goods and
Services Tax, Act 2017 by M/s. Cosme Costa & Sons, Mapusa, Goa seeking an
Advance Ruling in respect of the following question :
(i) Classification of “Leasing service” against payment of Royalty and
the rate of GST applicable on royalty for extraction of iron;
(ii) Whether the payment made to National Mineral Exploration Trust
(NMET) Fund, District Mineral Foundation (DMF) Fund and Goa
Mineral Ore Permanent Fund Trust (GMOPFT) is subject to levy of
GST and if held in affirmative, rate at which GST is payable in rela-
tion to extraction of iron.
GST LAW TIMES  30th April 2020  104