18 August 2023
Yes RCM applicable. The services for the right to use minerals including its exploration and evaluation, as per the Notification No. 11/2017-CT (Rate), dated 28.06.2017 as amended is included in sub heading 997337, attracting GST rate @18 % [ 9% + 9%]. Further, since the supply of services by the Government to a business entity located in the taxable territory, are covered under Serial No. 5 of Notification No. 13/2017-Central Tax, dated 28-6-2017, the liability to pay tax gets transferred to the recipient of such services viz. applicant under reverse charge mechanism as the services for right to use minerals (soil) including exploration and evaluation are provided by the Stale Government to the applicant’s business entity.
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