GST Deptt. to coordinate with State Mining Authorities to obtain illegal mining information

CBIC has issued GST Instruction No. 01/2026-GST dated 03 August 2026 to ensure coordination between the CGST Department and State Mining Authorities for sharing information relating to illegal mining and its transportation.

The Instruction refers to the Draft Performance Audit Report of the Comptroller and Auditor General of India (C&AG) on the “Assessment, levy and collection of GST on minerals” wherein it has been observed that State Mining Authorities detect numerous cases of illegal mining, illegal transportation of minerals, seizure of minerals and vehicles, cancellation/suspension of mining leases, excess extraction of minerals and other violations of mining laws.

The Instruction states that such information indicate suppression of taxable supplies, non-registration, under valuation involving non payment/short payment of GST. However, according to C&AG observations, presently there is no mechanism for periodic sharing of such information between mining department and GST Authorities.

Accordingly, it has been directed that all Principal Chief Commissioner/Chief Commissioner of CGST Zone shall ensure that;

(i) A Nodal Officer is designated for coordination with the concerned State Mining Department.

(ii)  A mechanism is established with State Mining Authorities for the periodic sharing of information relating to illegal mining and illegal transportation of minerals detected within its jurisdiction. 

(iii) Such information should be analysed to identify GST implications and appropriate actions to be taken under the CGST Act, 2017 and Rules.

(iv) The intelligence generated from such information to be dissiminated to the jurisdictional Commissionerate/Directorate General of GST Intelligence (DGGI) for further action.

(v) Periodic meetings with State Mining Authorities should be held to review the effectiveness of the information-sharing mechanism.

Download GST Instruction No. 1/2016 Click Here >> 

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