LatestGoods & Service Tax (GST) 18 September 2026
Centre Cannot Impose GST on Mining Royalties Yet
India cannot levy GST on mining royalty until the Model Mineral Development and Regulation (MMDR) Act amendment is passed. Legal analysis treats royalty as a contractual fee, not a taxable supply, keeping it outside GST scope.
Key Update: The Centre lacks the power to charge GST on mining royalty until the MMDR amendment takes effect.
- Royalty is treated as a contractual consideration, not a supply.
- Without the amendment, GST cannot be levied.
- The change will align tax treatment with the current legal view.
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