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How Tata Steel and JSW Steel will be impacted by SC ruling on mining royalty
Tata Steel, JSW Steel, and other mining companies might face increased costs due to additional state-imposed mining taxes, as per a Supreme Court decision. This could reduce profitability and impact the value chain, causing inflation. States are now authorized to levy taxes and claim backdated royalties, significantly affecting the financial status of impacted companies.
Mining tax case: Odisha to get a Rs 1 lakh crore bounty from SC ruling. What about others?
Odisha stands to reclaim over Rs 1 lakh crore following the Supreme Court's approval of retrospective tax collection on mineral-bearing land from 2005. Starting in April 2026, Odisha and other mineral-rich states like Andhra Pradesh and Telangana will begin receiving instalments. The ruling also reinstated the ORISED Act, allowing up to 20% annual tax.
View: Supreme Court under'mining' its own precedent with ruling on mining taxes?
The Supreme Court's recent ruling overturned a 1989 decision, granting states the power to tax mining activities alongside existing royalties. This verdict may cost companies over ₹1 lakh crore in financial liabilities. Despite waiving interest and penalties, the retrospective application causes significant economic uncertainty and affects business predictability.
We dig federalism, but why retro tax?
The Supreme Court's decision allowing state governments to impose retrospective taxes on mining activities from April 1, 2005, is poised to have significant economic consequences. The ruling is expected to increase input costs, especially in the electricity sector, potentially leading to higher tariffs or financial strain within the power industry. Coal-dependent states may turn to imports, impacting the national trade balance. Corporate profitability, particularly in public sector enterprises and resource-dependent private conglomerates, could face pressure due to increased costs. The ruling also raises concerns about the balance of federalism, as the retrospective nature of the tax may strain state-centre relations.
Mining royalty case: Setback for mining operators as SC rules states can impose levies retrospectively
The Supreme Court has ruled that states can collect past dues on royalty for mineral-bearing land from the Centre and mining companies starting from April 1, 2005. This decision was announced on Wednesday when Chief Justice of India DY Chandrachud delivered the verdict.
Centre expects hit of over Rs 1 lakh crore from apex court order allowing retrospective mining levies
The Centre expected mining companies to face a financial burden exceeding Rs 1 lakh crore due to a Supreme Court order allowing states to levy additional taxes retrospectively. The mining industry predicted even more substantial impacts, especially in Odisha and Jharkhand, with potential inflationary effects on the entire value chain.
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Mining tax case: SC ruling on royalty case may cut Indian mining cos a Rs 2 lakh crore bill
A Supreme Court ruling affirmed the power of Indian states to levy taxes on mineral rights, possibly resulting in arrears amounting to Rs 1.5 lakh crore to Rs 2 lakh crore. Companies in mining, steel, power, and coal are expected to be significantly affected. The court allowed installment payments over 12 years and disallowed penalty impositions.
SC's order allowing states to collect past dues to hurt miners, govt official says
India's Supreme Court has permitted state governments to collect outstanding tax dues from mining companies dating back to April 1, 2005, impacting the financial stability and future investments of these firms. This decision will stagger the payment in installments over 12 years starting from April 1, 2026.
Mining stocks like NMDC, Tata Steel fall up to 5% on SC royalty order
Shares of PSU National Mineral Development Corporation (NMDC) were among the worst hit and were trading over 5% lower at Rs 212 on NSE, while Tata Steel fell over 4%.
SC verdict on Aug 14 on effect of judgement on state's power to tax mineral rights
A nine-judge constitution bench headed by Chief Justice DY Chandrachud was told by the Centre that it opposed the demand of states for refund of royalty levied on mines and minerals since 1989, saying it will impact the citizens and the PSUs will have to empty their coffers by Rs 70,000 crore according to initial estimates.
Mining, for states to tax and take care
The Supreme Court affirmed state governments' authority to levy taxes on mineral rights. It distinguished royalty from tax and enhanced revenue for resource-rich but poor states like Jharkhand, West Bengal, and Odisha, clarified the scope of the Mines and Minerals Act. CJI D Y Chandrachud highlighted states' limited taxation room, with most rights held by the Centre. The court is considering a prospective application of the ruling to balance the impact on mining companies.
Retro or prospective? SC reserves order on states' power to tax mining companies
A nine-judge Supreme Court bench reserved its decision on applying last week's judgment on states' power to tax mines and minerals rights retrospectively or prospectively. The Solicitor General Tushar Mehta warning of potential economic impact amounting to Rs 70,000-80,000 crore on public sector undertakings. He argued against mineral-rich states seeking refunds, highlighting the broad impact on various sectors and the potential burden on consumers if payments are made retrospectively.
Supreme Court reserves order on whether verdict on states' power to tax minerals will apply retrospectively
The Supreme Court reserved its decision on whether a recent judgment upholding state powers to tax mines and minerals should be applied retrospectively. Solicitor General Tushar Mehta warned that such a move could burden public sector undertakings with Rs 70,000 to Rs 80,000 crore and negatively impact key economic sectors. While some senior counsels feared bankruptcy, representatives from mineral-rich states like Jharkhand and Odisha supported retrospective application, suggesting staggered payments to ease the financial impact. The court is yet to decide on the request for refunds against past levies since 1989.
Mining royalty case in SC: Centre says PSUs' burden would top Rs 70,000 cr if ruling made effective retrospectively
The Central government opposed states' plea in the Supreme Court for a refund of royalty levied on mines since 1989, arguing it would burden public units by over Rs 70,000 crore. The Supreme Court's recent ruling stated royalty is not a tax, and states sought retrospective application, which the Centre opposed.
Centre may amend MMDR Act to prevent further levies
Some companies could face dues running into thousands of crores if Thursday's Supreme Court order is applied retrospectively. This is because there are pending demands such as cess on royalty already raised by some state governments on mining operations.
Landmark Supreme Court ruling changes taxation rules for mining operators
The Supreme Court ruled that states can tax mineral rights under the Mines and Minerals Act 1957. In an 8:1 ruling, they deemed royalty as a contractual consideration, not a tax. This verdict empowers states to impose levies on mining beyond royalty. However, this ruling might face further scrutiny regarding its retrospective applicability, potentially impacting mining operators financially.
Mining operators case: SC through majority opinion holds that royalty is not in the nature of tax
A nine-judge Supreme Court bench, led by Chief Justice DY Chandrachud, has clarified that royalty is not considered a tax. This statement was made to highlight the distinction between the nature of royalty and tax obligations.
Indexation benefit removal in real estate will deter sellers in the secondary market
The real estate sector warned that removing indexation benefits for long-term capital gains would hinder its growth, affecting property owners and potentially increasing taxes. Authorities disagreed, citing high real estate returns, but experts believed low returns could still be an issue. Industry leaders viewed the change as beneficial for new investors with lower long-term capital gains tax rates.
Navigating Union Budget impact: Opportunities amidst overheated market
Coalition politics often requires a delicate balancing act, with the government catering to diverse interests. This could lead to a more populist Budget aimed at appealing to a wider range of voters. However, considering the Modi government's history of implementing bold reforms, we might see a mixed approach that combines populist measures with continued reform initiatives.
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