Spectre of retrospective taxation hangs again: EAC-PM member on mining royalty verdict

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Economic Advisory Council to the Prime Minister (EAC-PM) member Shamika Ravi on Wednesday said the "spectre of retrospective taxation" is once again hanging on India, with the Supreme Court permitting states to collect royalty and tax dues on mining undertaken from April 2005..

The Supreme Court has allowed states to recover royalty and tax dues on mineral rights and mineral-bearing lands worth thousands of crore of rupees since April 1, 2005, from the Centre and mining companies...

"The spectre of #RetrospectiveTaxation hangs once again on India, as the #SupremeCourt allows States to collect past dues in the form of royalty and tax on mining from April 2005 (!)..

Pronouncing a related judgement on behalf of the nine-judge constitution bench, Chief Justice DY Chandrachud rejected the arguments of the Centre and mining companies, including Public Sector Undertakings (PSU), for operationalising the July 25 verdict with prospective effect...

During a hearing on the issue on July 31, the Centre had opposed the demand of states for a refund of royalty levied on mines and minerals since 1989, saying if the July 25 verdict is implemented with retrospective effect, the PSUs, according to initial estimates, would lose more than Rs 70,000 crore..

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