Petronet's activity of re-gasification of LNG owned by its GST registered customers amounts to rendering of service by way of Job Work and merits to be covered at entry 'id' of Heading 9988 at Sl. No. 26 of Notification No. 11/2017-CT (rate) and liable to 12% GST
Classification of service- In the instant case, applicant submitted that it provides regasification services to its customers on the LNG owned by the customers, referred to as 'Tolling'. In the 'Tolling Model', the Applicant receives the LNG belonging to the customers at its plant, stores it, re-gasifies it and supplies RLNG to the customers.
Questions on which Advance Ruling sought are as follows-
1. Whether the applicant's activity of providing service of regasification of LNG owned by its customers to convert to RLNG, from its Plant at Dahej, Gujarat would amount to rendering of service by way of Job Work within the meaning of section 2(68) of the CGST, 2017 and the GGST Act, 2017
2. If yes, then whether the said service of re-gasification by way of job work be classifiable under entry (id) of Heading No. 9988 at Sl. No. 26 of Notification No. 11/2017-CT (rate) dated 28.06.2017, as amended vide Notification No. 20/2019-CT (Rate) dated 30-09-2019 w.e.f. 01.12.2019 and be chargeable to CGST at the rate of 6%.
We note that LNG is goods classified at HSN 2711. Thereby, we hold that subject activity merits to be covered at entry 'id' of Heading 9988 at Sl. No. 26 of Notification No. 11/2017-CT (rate) dated 28.06.2017, as amended.
Held that- Petronet's activity of re-gasification of LNG owned by its GST registered customers amounts to rendering of service by way of Job Work and merits to be covered at entry 'id' of Heading 9988 at Sl. No. 26 of Notification No. 11/2017-CT (rate) dated 28.06.2017, as amended, liable to CGST at 6% .
Petronet's activity of re-gasification of LNG owned by its GST registered customers amounts to rendering of service by way of Job Work and merits to be covered at entry 'id' of Heading 9988 at Sl. No. 26 of Notification No. 11/2017-CT (rate) and liable to 12% GST
Classification of service- In the instant case, applicant submitted that it provides regasification services to its customers on the LNG owned by the customers, referred to as 'Tolling'. In the 'Tolling Model', the Applicant receives the LNG belonging to the customers at its plant, stores it, re-gasifies it and supplies RLNG to the customers.
Questions on which Advance Ruling sought are as follows-
1. Whether the applicant's activity of providing service of regasification of LNG owned by its customers to convert to RLNG, from its Plant at Dahej, Gujarat would amount to rendering of service by way of Job Work within the meaning of section 2(68) of the CGST, 2017 and the GGST Act, 2017
2. If yes, then whether the said service of re-gasification by way of job work be classifiable under entry (id) of Heading No. 9988 at Sl. No. 26 of Notification No. 11/2017-CT (rate) dated 28.06.2017, as amended vide Notification No. 20/2019-CT (Rate) dated 30-09-2019 w.e.f. 01.12.2019 and be chargeable to CGST at the rate of 6%.
We note that LNG is goods classified at HSN 2711. Thereby, we hold that subject activity merits to be covered at entry 'id' of Heading 9988 at Sl. No. 26 of Notification No. 11/2017-CT (rate) dated 28.06.2017, as amended.
Held that- Petronet's activity of re-gasification of LNG owned by its GST registered customers amounts to rendering of service by way of Job Work and merits to be covered at entry 'id' of Heading 9988 at Sl. No. 26 of Notification No. 11/2017-CT (rate) dated 28.06.2017, as amended, liable to CGST at 6% .