Mining in the Name of Tribal Societies

Tribal society told to pay Rs 3 crore in GST

A tax evasion notice was dropped by the GST Intelligence on an unsuspecting head of tribal cooperative society with the claim that she owed them Rs 3 crore in tax for mining Rs 24.5 crore worth of sand. The society may not have raked up the tax bill since they had sub-contracted the work to companies in cities in return for a sum which can be as low as Rs 1 lakh depending on the project. The law stated that any sand mining contact and related activity must be exclusively given to the locals and members of the Scheduled Tribes community.