Indian Supreme Court grants states authority to impose taxes on mining firms from April 1, 2005, with past royalty payments due in installments from 2026.

The Indian Supreme Court has determined that states have the authority to impose taxes on mining companies for mineral rights and mineral-bearing land from April 1, 2005 onwards. This decision allows states such as Jharkhand, Odisha, Chhattisgarh, and Rajasthan to collect past dues on royalty payments from mining firms, with payments to be made in installments over a 12-year period, starting in April 2026. The Supreme Court has ruled that states cannot impose penalties or additional interest on past demands. This decision marks a significant shift in the financial autonomy of states regarding mineral resources, enabling them to levy taxes on minerals and mineral-bearing land in addition to the royalty imposed by the Centre.

August 13, 2024
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