Godawari Power – Any Trackers?

Impact of SC Judgement on Godawari Power and Ispat Ltd (GPIL) to allow state to collect dues on royalty on minerals from April’2005

• Chhattisgarh State Government has never to date levied tax on Mining. There is no act imposing tax on mining in the state of Chhattisgarh.
• Odisha and Jharkhand’s State Government came out with an Act to impose tax on mining in 2005. So against that, mining companies went to court stating State has no power to levy Tax. The matter has been pending since then and now finally Supreme Court has decided that the State has power and can collect tax. Tax collected by them is Constitutional. So companies will have to pay the tax that they were supposed to pay from 2005.
• Now, Chhattisgarh State Government can also come up with the Act to levy Tax like Odisha and Jharkhand Government. This will be levied from now onwards – can’t be retrospective if Chhattisgarh Government wants to do so. But nothing is there as of now for mining companies in Chhattisgarh.
• So as of now, there is no impact on GPIL or any company that does mining in Chhattisgarh State.