Supreme Court Deliberates on Mineral Taxation Rights

The Supreme Court is poised to make a decision on listing pleas from mineral-rich states about the tax levy on mineral rights. Previously, a nine-judge bench ruled that states have legislative power to tax mineral rights, not the Centre, boosting state revenue. The Centre's curative petition is pending.

The Supreme Court announced on Thursday its intent to decide on listing pleas from various mineral-rich states regarding a tax levy on mineral rights. This step follows a landmark ruling by a nine-judge bench, which determined that states possess the legislative authority to impose taxes on mineral rights, not the central government.

On July 25, 2024, the Supreme Court's ruling dealt a major blow to the Centre, declaring Parliament lacked the legislative power to tax mineral rights under Entry 54 of List I. This verdict, encouraging for mineral-rich states, ensured significant revenue boosts from royalties, previously not classified as taxes.

The central government, represented by Solicitor General Tushar Mehta, has challenged the ruling with a curative petition and awaits its adjudication. The bench, led by Chief Justice Surya Kant, intends to analyze records before making a final call, acknowledging the potential outcome's impact on future litigation.