Classifiation of service— In the instant case, the applicant is is a part of Worley Rarsons Limited, which is a global engineering company providing project delivery and consulting services to the resources and energy sectors and other complex process industries.
The applicant, seeking an advance ruling in respect of the following questions:
A. Whether the services provided by the Applicant are classified under si No. 24(ii) of heading 9986 of the Rate Notification as 'Support services to exploration, mining or drilling of petroleum crude or natural gas or both' under SAC 998621 and attracts GST @ 12% in terms of Sl. No. 24(ii) of Rate Notification?
B. Alternatively, whether the services provided by the Applicant are classified under SI No. 21(ia) of heading 9983 of the Rate Notification as 'Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both' and attracts GST @ 12% in terms of Sl. No. 21(ia) of Rate Notification?
C. Further, if the subject services are not classifiable under the aforesaid entry, what would be the appropriate classification for the same and at what rate GST would be imposable?
The applicant was classifying their supply under Service Accounting Code ('SAC') 998339 as 'Project management services for construction projects' and paying GST @ 18% as per residuary entry under Sr. No. 21 of Notification No. 8/2017-I.T. (Rate) dated 28.06.2017. However subsequent to issuance of Notification No. 19/2019 - Integrated Tax (Rate) dated September 30, 2019, the Applicant is of the belief and contending that the impugned services supplied by them falls under Sr No. 24 (ii) of heading 9986 of the Rate Notification as 'Support services to exploration, mining or drilling of petroleum crude or natural gas or both under SAC 998621, attracting GST @ 12% and alternatively, falls under Sr No. 21(ia) of heading 9983 of the Rate Notification as 'Other professional, technical and business services relating to exploration, mining or drilling of petroleum crude or natural gas or both' attracting GST @ 12%.
Held that— Even though the impugned services consist of professional, technical and business services, the same are not covered under Sr. No. 21 (ia) (SAC SHTRA 9983) and Sr. No. 24 (SAC 9986) of Notification 11/2017-CT(R) dated 28.06.2017 as amended.
Therefore, the said professional, technical and business services supplied by the applicant to VL are clearly covered under the residual Entry No. 21 (ii) of Notification 11/2017 - CT(R) dated 28.06.2017 as amended, attracting tax rate of 18%.