Supreme Court to Decide on Retrospective Taxation on Mineral Rights

The Supreme Court is set to announce its decision on August 14 regarding the retrospective or prospective effect of its July 25 ruling. The earlier verdict confirmed that states have the power to levy taxes on mineral rights, overturning a 1989 ruling that granted this authority solely to the Centre. The Centre opposes the states' demand for refunds since 1989, arguing it could cost Rs 70,000 crore.

The Supreme Court is poised to deliver a crucial verdict on August 14, determining whether its recent ruling on states' power to levy taxes on mineral rights will apply retrospectively.

The Court's July 25 decision affirmed that the legislative power to tax minerals rests with states, overturning a 1989 ruling that had placed this authority with the Centre.

Several opposition-ruled, mineral-rich states are claiming refunds from the Centre for taxes paid since 1989. The Centre, represented by Solicitor General Tushar Mehta, has expressed concerns over the financial implications, which could potentially amount to Rs 70,000 crore, severely impacting citizens and public sector undertakings.

(With inputs from agencies.)