Supreme Court Weighs State Mineral Tax Powers

The Supreme Court is set to decide on the listing of cases related to the taxation of mineral rights. This comes after a pivotal nine-judge constitution bench ruling in July 2024, which affirmed that states possess the legislative power to tax mineral rights. The majority verdict also clarified that royalties paid on minerals do not constitute a tax, and Parliament lacks the competence to tax these rights under specific constitutional entries.

The Centre has since filed a curative petition against this July 2024 judgment. Appearing before the court, the Solicitor General emphasized that individual state petitions cannot be heard until the central government's curative plea is adjudicated. This legal maneuver suggests the Centre's intent to challenge the implications of the earlier ruling, which significantly benefited mineral-rich states.

The apex court had previously dismissed review petitions against the July 2024 verdict. While a dissenting opinion suggested royalty could be a tax, the majority decision has led to substantial revenue implications for states. The court has indicated it will review the records to determine the next steps regarding the listing of these crucial tax cases.