The Supreme Court issues notice to Govt. on a plea challenging 18% GST on services by way of grant of mineral exploration and mining rights. The petitions are filed by a group of firms involved in mining and crushing operations. The petitions urge that the impugned circular has far-reaching repercussions to the effect that every mining company has been made liable to pay Goods and Services Tax on the amount of royalty paid for mining operations inasmuch as the royalty paid by such companies is already a kind of tax being paid to the government and more importantly which question, i.e. royalty being a tax, is pending adjudication before a nine-judges bench of the Supreme Court.
Source Taxscan
