The West Bengal Authority for Advance Ruling (WBAAR) has held that dredging services provided by Arihant Dredging Developers Pvt. Ltd. (ADDPL) to the West Bengal Irrigation & Waterways Directorate for the upcoming Ganga Sagar Mela 2025 will be exempt from Goods and Services Tax (GST).
ADDPL was awarded a contract by the Government of West Bengal for dredging operations in the Muriganga river, situated in South 24 Parganas, to facilitate smooth ferry movement for millions of pilgrims visiting the Ganga Sagar Mela. The work involved dredging by Cutter Suction Dredger (CSD) in Channels I, III, 2A, and 3A, along with disposal of dredged materials at designated dumping sites.
The company sought an advance ruling on whether such dredging services would be covered under Sl. No. 3 of Notification No. 12/2017-Central Tax (Rate). The applicable GST rate, if any.
The applicant argued that the services qualified as pure services (not involving supply of goods or works contract). The recipient of services was the State Government of West Bengal. The activity is directly related to functions listed under Article 243G of the Constitution (Eleventh Schedule), specifically minor irrigation, water management, and waterways. Relying on past rulings and the nature of work, ADDPL contended that no GST should apply.
The department argued that the dredging work should be classified under SAC 9987 (Supporting Services in Transport). Since it was an intra-state supply, Notification No. 9/2017-IGST (Rate) was inapplicable. GST at 18% (9% CGST + 9% WBGST) should be levied.
The bench comprising Shafeeq S (CGST) and Jaydip Kumar Chakrabarti (SGST) examined that the purpose of dredging was to ensure navigability of Muriganga river, crucial for ferry services during Ganga Sagar Mela. Such work clearly fell under “ferries, waterways and other means of communication” (Entry 13, Eleventh Schedule) entrusted to Panchayats under Article 243G. The activity involved no supply of goods, qualifying it as a pure service.
The Authority also clarified that the applicant had initially cited the wrong notification (IGST). The correct reference should have been Notification No. 12/2017-CGST (Rate) and its West Bengal counterpart, which exempts such services.
Ruling Details
Applicant’s Name: Arihant Dredging Developers Private Limited
Ruling Date: 16/07/2025
