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TMI Blog2024 (9) TMI 663X X X X Extracts X X X X X X X X Extracts X X X X ..... AP Goods & Services Tax Act, 2017. 2. Brief Facts of the case: 2.1. The applicant, M/s Visakha Trades, is engaged in the business of renting immovable property as per registration certificate of the tax payer. 2.2. The applicant participated in and was awarded a contract through a tender process initiated by The Admiral Superintendent, Naval Dockyard, Visakhapatnam, vide Request for Proposal No. COM/OFF/OUT/21-22/1102 dated 29th July, 2022. 2.3. The contract pertains to Habitability upgradation works on board INS Ranveer, valued at Rs. 3,02,18,862.00 (inclusive of GST). 2.4. The scope of work, as per the Request for Proposal (RFP), includes: a) Supply and installation of bathroom and washbasin fittings b) Installation of bunks and wardrobe lockers c) Fitting of telephone stands and cloth hanging rods d) Installation of doors and taps e) Supply and fitting of file cabinets, ventilation grills, mirrors, and executive chairs 2.5. The applicant seeks clarity on the applicable GST rate for this contract and the admissibility of Input Tax Credit on purchases made for execution of the work. 3. Questions raised before the authority: The applicant sought advance ruling on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hra Pradesh registered under GST Act with registration 37AHSPK6604K1ZT, under administrative control of "State" and on the rolls of Daba Gardens Circle, Visakhapatnam-1 Division. 8.2 The company submitted that they are engaged in dealing with Works Contract Services in renting of immovable property services and currently doing Habitality upgradation works onboard ship. There was a tender by The Admiral Superintendent, Naval Dockyard, Visakhapatnam vide Request for Proposal No. COM/OFF/OUT/21-22/1102 Dated. 29 July, 2022.The applicant was the successful bidder of the tender and has sought certain clarifications to the Advance Ruling Authority. 8.3. The key issue for consideration is whether the services provided by the applicant qualify as "Maintenance, repair or overhaul services" (MRO services) in respect of ships and vessels as per the amended notification. 8.4. Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended by Notification No. 02/2021-Central Tax (Rate) dated 02.06.2021, inserted a concessional GST rate of 5% (CGST 2.5% + SGST 2.5%) for "Maintenance, repair or overhaul services in respect of ships and other vessels, their engines and other components ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to a sound or a healthy state (b) To make repair for becoming good for running/ condition for use (c) Work of maintenance, decoration, a restoration (d) To put something old or damaged back into good and working condition (Oxford Dictionary). (e) To put something damaged, broken, or not working correctly, back into good condition or make it work again (Cambridge Dictionary). (f) To restore by replacing a part or putting together what is torn or broken (Merriam-Webster). (g) To restore to good or sound condition after decay or damage (Dictionary.com). Meaning of repair will depend upon the contract. It is to note that repairs are in contra distinction to renewal or restoration and also that repairs or not expressive of a clear contract. Repair always involves renewal of a part or replacement of subsidiary parts of a whole. 8.5.3. Overhauling Services : To look at something carefully and change or repair it if necessary (Oxford Dictionary). To repair or improve something so that every part of it work as it should (Cambridge Dictionary). To examine thoroughly (Merriam-Webster). To examine thoroughly and make any needed repairs (thefreedictionary.com). To make n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation No. 11/2017-Central Tax (Rate), dated 28.06.2017, as amended by Notification No. 02/2021-Central Tax (Rate), dated 02.06.2021, pertains to the GST rate applicable to certain services. Specifically, it introduces a GST rate of CGST 2.5% SGST 2.5 % for "Maintenance, repair or overhaul services in respect of ships and other vessels, their engines and other components or parts." 9.4 The amended notification clarifies and updates the GST rates for various services, including the insertion of this specific service under Entry 25 (ib). This amendment is part of the ongoing adjustments to the GST framework to ensure clarity and appropriate taxation rates for different categories of services. 9.5 For a detailed understanding of how this entry might apply to a specific tender or contract, it is necessary to examine the tender in detail along with scope of work and agreements made in between the two parties. The amended notification is specifically provided for MRO services for ships, vessels, their engines, and components. It does not cover all services related to ships or vessels. 9.6 It is evidently clear that there is no specific, that the applicant had enter into a maintenance c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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