No GST Exemption On Supply Of Dredging Services To Gujarat Maritime Board: AAR

The Gujarat Authority of Advance Ruling (AAR) has held that no Goods and Service Tax (GST) exemption is allowable on supply of dredging services to Gujarat Maritime Board under serial No. 3A of notification No. 9/2017-IT (Rate) dated 28.6.2017 as amended by notification No. 2/2018-IT (Rate) dated 25.1.2018.

The bench of P.B. Meena and Kamal Shukla has observed that though the tenders are being floated by the Director of Fisheries, Gujarat Maritime Board (GMB) is the owner of the port. The dredging services rendered by the applicant are being received by GMB. Now, GMB does not fall within the ambit of either the Central Government, State Government or Union Territory or local authority. Thus, the third condition that the supply is to be provided to the Central Government, State Government or Union Territory is not satisfied. Further, GMB is not a local authority in terms of section 2(69) of the CGST Act, 2017. Thus, the condition not having been fulfilled, the applicant is ineligible for the benefit of the notification.

The applicant, M/s. Kishor Projects Pvt. Ltd. has been awarded the dredging contract by the Fisheries Department. The applicant’s averment is that the dredging service rendered would fall within the exemption notification.

The applicant sought the advance ruling on issue whether the supply of services of dredging activity undertaken by the applicant provided to Gujarat Maritime Board is covered under serial No. 3A of notification No. 9/2017-IT (Rate) dated 28.6.2017 as amended by notification No. 2/2018-IT (Rate) dated 25.1.2018.

The AAR held that GMI does not fall within the ambit of either the Central Government, Statc (government or union ‘territory or local authority) and the term ‘government entity’ stands omitted from the exemption notification. 

Ruling Details

Applicant Name: Kishor Projects

Date: 25/03/2025

Read More: ITC Available on Canteen Services for Factory Employees, Limited to Employer’s Cost Share: AAR

Mariya Paliwala
Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Industry Voices Alarm Over Misuse of GST Audit Notices at Ahmedabad Conclave

At a high-profile GST Conclave held jointly by the Central GST (CGST)…

GST Evasion | Chhattisgarh High Court Grants Bail To Accused Of Passing Unauthorised ITC Worth Rs. 63.37 Crores Based On Fake Bills

The Chhattisgarh High Court has granted bail to accused of passing unauthorised…

Supreme Court Stresses Need for Safeguards Against Arrest Under GST Act, Citing Arguments by Sr. Advocate Sujit Ghosh

The Supreme Court has upheld the constitutional validity of GST Arrest Provisions…

GSTN Introduces E-Invoice Verifier App: A Comprehensive Replacement for e-Invoice QR Code Verifier

The Goods and Services Tax Network (GSTN) has launched the E-Invoice Verifier…