Historic decision of the Supreme Court, states have the right to tax mineral rich land

Big decision of Supreme Court

Supreme Court But Mineral Tax, Mineral-rich states have won a big victory in the Supreme Court. The Supreme Court has given a historic verdict that states have the right to levy tax on mineral-rich land. A bench of 9 judges ruled that states have the capacity and power to levy tax on mineral-rich land.

These states will benefit

This decision will benefit Odisha, Jharkhand, West Bengal, Chhattisgarh, Madhya Pradesh and Rajasthan. The Constitution Bench of 9 judges of the Supreme Court ruled that the royalty paid on minerals is not a tax. Chief Justice (CJI) DY Chandrachud said that Justice BV Nagarathna has given a dissenting judgment on whether the royalty payable on minerals is a tax or not.

States, not parliament, have the power

The Supreme Court, in a majority decision of 8:1, held that Parliament does not have the power to tax mineral rights under the provisions of the Constitution. The majority judgment of the court said that under the Constitution, the states have the legislative power to tax mines and mineral-bearing lands.