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

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