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An analysis by Economic Laws Practice (ELP), Taxand India
A recent Supreme Court ruling in India, which allows states to impose taxes on mining royalties, is expected to significantly raise costs for the mining sector, potentially impacting the industry by up to ₹2 lakh crore. These higher costs could lead to increased prices for primary goods like steel, adding to inflation. The ruling has already caused a drop in metal stocks and may slow down industry expansion and debt repayment. Additionally, the revival of previously suspended GST cases on mining royalties could further strain the sector.
Gopal Mundhra from our Indian member firm, Economic Laws Practice (ELP) has provided expert commentary on this issue in an article in the Indian Express, which you can read here.
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