Classification of service— This application for Advance Ruling is being filed seeking the rate of IGST on vessel charter hire charges?

Held that— In view of the submission made by the applicant we find that the basic issue before us is whether the Tug Jupiter that the Applicant has let out under a charter for 730 days (with an option to extend the contract one year more) is classifiable under SAC 996602 as ‘Rental Services of water vessels including passenger vessels, freight vessels and the like with or without operator’ attracting GST @5% or under SAC 997319 as ‘Leasing or rental services concerning other machinery and equipments with or without operators’ attracting GST @5%.

Held that— we are of the opinion that the Tug Jupiter let out by the applicant to RIL on charter basis is classifiable under Sl.No.10 of Heading 9966, vide Notification no. 1/2018-IT (Rate) dated 25.01.2018 attracting tax rate of 5%, subject to fulfilling of the conditions attached to it.—Ocean Sparkle Limited, In Re… [2020] 21 TAXLOK.COM 135 (AAR-AP)