Supply of service by ANP which is in non taxable territory to GSPC(J) which is in taxable territory. This is import of service by GSPC(J) and the GST liability mechanism is Reverse Charge.
Levy of GST— Section 9 of CGST Act— In the instant case, applicant Gspc (jpda) ltd., has submitted that Autoridade Nacional do Petroleo E Minerals(ANP) is Timor Leste’s institution and is vested with administrative and financial autonomy to act as regulatory authority for the oil, gas and mineral related activities in accordance with the provisions of the Petroleum Activities Law.
The applicant has asked the following question seeking Advance Ruling:
‘Whether payment of settlement fees pursuant to deed of settlement and Release signed for Timor-Leste Oil Block Production Sharing Contract qualifies as a ‘supply’ under Goods and Service Tax (GST) regulations and thereby attract levy of GST?’
On reading the Section 2(14) IGST Act, we find that the location of the recipient (GSPC(J)) in subject matter is Gujarat, which is a taxable territory. Further, as per entry 1 to Notification 10/2017-Integrated Tax(R), we find that the applicant, being the recipient of service, is liable to pay IGST on the supply of service by ANP, which is located in non-taxable territory) on reverse charge basis.
Held that— GSPC (J) is liable to pay IGST, vide Reverse Charge Mechanism, on Import of Subject supply of Service from ANP.
Supply of service by ANP which is in non taxable territory to GSPC(J) which is in taxable territory. This is import of service by GSPC(J) and the GST liability mechanism is Reverse Charge.
Levy of GST— Section 9 of CGST Act— In the instant case, applicant Gspc (jpda) ltd., has submitted that Autoridade Nacional do Petroleo E Minerals(ANP) is Timor Leste’s institution and is vested with administrative and financial autonomy to act as regulatory authority for the oil, gas and mineral related activities in accordance with the provisions of the Petroleum Activities Law.
The applicant has asked the following question seeking Advance Ruling:
‘Whether payment of settlement fees pursuant to deed of settlement and Release signed for Timor-Leste Oil Block Production Sharing Contract qualifies as a ‘supply’ under Goods and Service Tax (GST) regulations and thereby attract levy of GST?’
On reading the Section 2(14) IGST Act, we find that the location of the recipient (GSPC(J)) in subject matter is Gujarat, which is a taxable territory. Further, as per entry 1 to Notification 10/2017-Integrated Tax(R), we find that the applicant, being the recipient of service, is liable to pay IGST on the supply of service by ANP, which is located in non-taxable territory) on reverse charge basis.
Held that— GSPC (J) is liable to pay IGST, vide Reverse Charge Mechanism, on Import of Subject supply of Service from ANP.