Services supplied by a State Government to Excess Royalty Collection Contractor (ERCC) by way of assigning the right to collect royalty on behalf of the State Government on the mineral dispatched by the mining lease holders. Explanation.- "mining lease holder" means a person who has been granted mining lease, quarry lease or license or other mineral concession under the Mines and Minerals (Development and Regulation) Act, 1957, the rules made thereunder or the rules made by a State Government under sub-section (1) of section 15 of the Mines and Minerals (Development and Regulation) Act, 1957. — GST rate 0%

As per Notification 12/2017 (amended by 16/2025), services supplied by a state government to excess royalty collection contractor (ercc) by way of assigning the right to collect royalty on behalf of the state government on the mineral dispatched by the mining lease holders. explanation.- "mining lease holder" means a person who has been granted mining lease, quarry lease or license or other mineral concession under the mines and minerals (development and regulation) act, 1957, the rules made thereunder or the rules made by a state government under sub-section (1) of section 15 of the mines and minerals (development and regulation) act, 1957. classified under SAC Heading 9991 or any other Heading attracts 0% GST effective 22 September 2025. On an intra-state supply this is charged as 0% CGST plus 0% SGST; on an inter-state supply the full 0% is charged as IGST. This rate applies subject to the condition: Provided that at the end of the contract period, ERCC shall submit an account to the State Government and certify that the amount of goods and services tax deposited by mining lease holders on royalty is more than the goods and services tax exempted on the service provided by State Government to the ERCC of assignment of right to collect royalty; where such amount of goods and services tax paid by mining lease holders is less than the amount exempted, the exemption shall be restricted to such amount as is equal to the amount of goods and services tax paid by the mining lease holders and the ERCC shall pay the difference..