Classification of service— In the instant case, the applicant has submitted that it provides LNG re-gasification services to its customers and that the LNG is owned by its customers who are all GST registered Taxpayers.

Question on which Advance Ruling sought:

1. Whether the Applicant’s activity of providing service of re-gasification of LNG owned by its customers (who are registered under the CGST Act) to convert to RLNG, from its re-gasification terminal at Hazira Port, Gujarat would amount to rendering of service by way of job work as defined under Section 2(68) of the Central Goods and Services Tax Act, 2017 (‘CGST Act’)?

2. If yes, then whether the said re-gasification service by way of job-work be classifiable under Entry (id) of Heading No. 9988 of 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 and eligible for GST at the rate of 12%?

The subject activity of re-gasification of LNG into RLNG is undertaken by M/s. Shell Energy on LNG belonging to another GST Registered person. 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— Applicant'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 12%