Question . How can we take support during filing of returns, as huge mines are located throughout the districts in the country, especially in rural and backward areas, and the problem will be aggravated as the huge number of mines are operating without any IT infrastructure? Answer: Returns may be filed from the central office of the… Read More »
Question : What is the procedure for return of goods under GST? Answer: In terms of Section 34(1) of the CGST Act, 2017 in case of return of goods on which GST was paid at the time of supply, the supplier of such goods may issue a credit note for the full value, including the… Read More »
Question . Are minerals sent for export in processed or raw form fully exempted from payment of GST or IGST? Answer: In terms of the provision of Section 16(1) of the IGST Act, 2017 export of goods is considered as zero rated supply. Further, in terms of the provision of Section 16(3) of the IGST Act,… Read More »
Question . Will the mining companies be eligible to take ITC for construction of townships, hospitals and schools? Answer: No. Mining companies will not be eligible for ITC on such activities even if used in course or furtherance of business. In this connection, the provisions contained in section 17(5) (c) of the CGST Act,… Read More »
Question . Will ITC be available for holding Environmental Clearance (EC) and Forestry Clearance (FC) meetings and for obtaining ‘consent to operate’ the Mines? Answer: Yes, ITC on expenses incurred in the course or furtherance of business shall be available. Related GST FAQ GST on Mining Sector : FAQ GST on Handicraft Sector : FAQ 150… Read More »
Question . Exploration companies undertake exploration activities for preparing mining blocks for auction in different States in the country. They use rigs for exploration. CENVAT credit was available on rig operations under the existing law. Will the company be eligible to take ITC under GST? Answer: Rigs, capitalized in the books of accounts as capital goods are… Read More »
In case of an FOR contract for supply of mineral from the mine to the buyer, it is a composite supply where the consideration will be inclusive of the transportation cost .Therefore, GST on forward charge will be payable by the supplier of the mineral and credit will be available to the buyer if otherwise… Read More »
Question : Can GST charged as per transport bilti on movement of mineral from mine to the buyer be allowed as ITC to the buyer irrespective of the ownership of the transporting vehicle? Answer: In case of an FOR contract for supply of mineral from the mine to the buyer, it is a composite supply… Read More »
Question . Whether free issue of coal to employees paid in course of employment and on the basis of wage agreement with value below Rs.50, 000/- per employee will attract GST? Answer: Gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply… Read More »
Question : Will GST charged by tax consultants, advocates, Chartered Accountants, environmental consultants, canteen service providers and other service providers to mining companies be allowed as input credit? Answer: ITC on any input service/ inputs used in the course or furtherance of business would be available subject to restrictions and other conditions as per the provisions… Read More »