Page 112 - GSTL_30th April 2020_Vol 35_Part 5

598 GST LAW TIMES [ Vol. 35
the notification it may be seen that the said services are specifically not men-
tioned in any of descriptions of Entry No. 17 and thereby it qualifies to be catego-
rized in the residual clauses/serial of Entry No. 17, wherein it has been specified
that the rate applicable for such service should be the same rate as applicable for
the supply of like goods involving transfer of title in goods. The relevant entry of
Notification No. 17 ibid is reproduced as under :

Sl. Chapter, Section Description of Service Rate (%) Con-
No. or Heading dition
17 Heading 9973 (i)
(Leasing or rental
services with or
without operator)
…..
(vi) Leasing or rental Same rate of
services with or with- Central Tax as
out operator, other on supply of like
than (i), (ii), (iii), (iv) goods involving
and (v) above transfer of title
in goods

The said notification has passed through several amendments and the GST rate
against relevant entry of Sl. No. 17 was amended vide Notification No. 27/2018
(w.e.f. 1-1-2019). The amended texts of the notification are as under :

Sl. Chapter, Section Description of Service Rate Condi-
No. or Heading (%) tion
17 Heading 9973 (i)
(Leasing or rental
services with or
without operator)
…..
(viii) Leasing or rental services 9 -“
with or without operator, other
than (i), (ii), (iii), (iv), (v), (vi),
(vii) and (viia) above

From the above, it may be concluded that till 31-12-2018 the rate of GST on the
impugned services was applicable at the rate of tax as applicable to like goods
involving transfer of title of goods i.e. 5% in the case of iron ore, the goods sup-
plied by the applicant, and the rate of GST stands increased to 18% (CGST 9% +
SGST 9%) from 1-1-2019 onwards.
10. In view of the above facts and discussions we pass the following
order :-
ORDER
11. The ruling so sought by the Applicant is accordingly answered as
under :-
(1) The royalty paid by M/s. Cosme Costa & Sons in respect of mining
lease is classifiable under sub-heading 9973 37 - “Licensing services
for the right to use minerals including its exploration and evaluation” and

GST LAW TIMES  30th April 2020  112