Brief by Shorts91 Newsdesk / 08:50am on 25 Jul 2024,Thursday India
The Supreme Court has upheld the rights of states to impose royalty on mining and mineral-use activities. In an 8:1 verdict, the court ruled that royalty is distinct from tax and within the states' competence to levy. This decision reverses the court's earlier order and benefits mineral-rich states like Odisha, Bengal, Jharkhand, and Chhattisgarh. The court clarified that payments to the government for mineral extraction cannot be considered a tax. The verdict is a significant development in the mining sector, allowing states to charge for mineral resources.
