Contractors who accumulate royalty collection will charge royalty along with 18% GST from the truck owners who are loaded with limestone in the truck from 8 January 2018. This recovery will be based on unpaid revenue. The paid revenue will be given by the truck owners in terms of debt rent by collecting GST amount. Previously, limestone was charged with service tax. Institutes under Mines over association had filed a case against collecting royalty along with services tax in the high court to annul this mechanism.
After adjournment order, mines owners had stopped collecting such money. The high court order came after GST implementation and after that, it was declared to charge the money from all mines owners. All the minerals started attracting 18% GST charges on royalty as well. The limestone out from the Ramganj Mandi and Jhalawar regions mine received the notification to pay royalty along with GST on with effect from 1 January 2018. The contractor of royalty collection has acquired the GST number and notified about the charging procedure from 8 January.
GST allowances will be given to mines owners at the time of return filing in terms of refund. The mine’s owners will be responsible for collecting GST over royalty and it will directly favour the end consumers.
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Generally, trucks carry 15 tonnes of limestone. After 18% GST implementation, the owners have to pay approx 342 Rs. more and it will cost 23 Rs. per foot.
The revenue collection system is of two types under GST regime. In Ramganj Mandi and Jhalawar regions, there are two types of revenue collection ways which are available online. One revenue form is generated by paying the debt rent and the revenue costs equal to the debt rent, this revenue collection is considered as paid revenue. Before applying for this paid revenue, it is necessary for mines owners to deposit 18% GST on the debt rent. After that, this kind of revenue can be generated.
With this procedure and paper, the vehicles carrying limestone are not required to pay any GST charges on check-posts. But, the unpaid revenue concerning trucks have to pay 18% GST on total royalty money at the check-posts. At the check posts, this unpaid revenue is collected by the assistance of the contractors involved in royalty collection.
The collection of unpaid revenue starts from 8 January 2018. On paid revenue, the mineral department will charge GST.
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All the contractors are informed to charge 18% GST on royalty amount by January 1 and concerned contractors are ready to collect the money.
