Page 105 - GSTL_30th April 2020_Vol 35_Part 5

2020 ] IN RE : COSME COSTA & SONS 591
Brief facts of the case :
2. At the outset, we would like to make it clear that the provisions of
both the CGST Act and the Goa GST Act are the same except for certain provi-
sions. Therefore, unless a mention is specifically made to such dissimilar provi-
sions, a reference to the CGST Act would also mean a reference to the same pro-
vision under the Goa GST Act. Further to the earlier, henceforth for the purposes
of this Advance Ruling, a reference to such a similar provision under the CGST
Act/GGST Act would be mentioned as being under the “GST Act”.
3. M/s. Cosme Costa and Sons, a partnership firm having their regis-
tered office at Altinho - Mapusa, Faira Alita, Bardez, Goa-403507 (hereinafter re-
ferred to as ‘the applicant’) are registered under the provisions of the GST Act
and hold GSTIN No. 30AABFC0743K1ZZ. The applicant are engaged in the
business of extraction and sale of iron ore from GAVAL SONSHI MINE located
at Pissurlem Village in North Goa, Sattari Taluka spread over to an extent of
61.7430 hectares of land bearing Sy. No. : 41 covered under the Mining Lease TC
No. 110/1953. The operations conducted in relation to the extraction include the
activity of raising, excavating, stacking of iron ore and delivering the extracted
crude iron ore at Pit head. The following statutory payments are required to be
made by the applicant in order to extraction and sale of iron ore :-
(a) The applicant has to pay royalty as a statutory payment to the State
Government of Goa at the rate of 15% of the average sale price of
iron ore, as a consideration for right to extract iron ore, in accord-
ance with the provisions of the Mines and Minerals (Development
and Regulation) Act, 1957.
(b) The applicant has to make a contribution to the National Mineral
Exploration Trust (NMET) as a statutory payment in accordance
with the provisions of the Mines and Minerals (Development and
Regulation Act) at the rate of 2% of the royalty paid.
(c) The applicant has to make a contribution to the District Mineral
Foundation (DMF) as a statutory payment in accordance with the
provisions of the Mines and Minerals (Development and Regulation
Act) as a statutory payment at the rate of 30% of the royalty paid.
(d) The applicant has to make a statutory payment of the Goa Mineral
Ore Permanent Fund Trust (GMOPFT) at the rate of 10% of sale
proceeds of the iron ore.
4. The applicant’s submission on Royalty and payments to be made to
aforesaid trusts are as below :
Submissions on classification of royalty -
4.1 The applicant submitted that services provided by the State Gov-
ernment by way [of] licensing services for extraction of iron ore is a ‘Supply’ for
which royalty payable is a consideration and the GST payable on the same is to
be discharged by the applicant under Reverse Charge Mechanism in accordance
with the provisions of Section 9(3) of the CGST Act, 2017 read with Entry No. : 5
of Notification No. : 13/2017-Central Tax (Rate), dated 28th June, 2017 and simi-
lar notification issued by the State Government. The applicant is of the view that
the most appropriate classification would he under Heading : 9973 - (Leasing or
rental services with or without operator) with the sub-category 9973 37 - (Licens-
ing services for the right to use minerals including its exploration and evalua-

GST LAW TIMES  30th April 2020  105