Activity of re-gasification of LNG owned customers, amounts to rendering of service by job work

Last updated: 28 December 2021

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The Gujarat Authority for Advance Ruling (AAR) has determined that the re-gasification of Liquefied Natural Gas (LNG) owned by customers constitutes a service provided through job work. This activity is therefore subject to a Goods and Services Tax (GST) rate of 12%. The ruling clarifies that the process of converting LNG into Regasified Liquefied Natural Gas (RLNG) for others falls under the definition of job work services.

Court :
AAR, Gujarat

Brief :
The AAR, Gujarat in the matter of M/s. Petronet LNG Ltd. [Advance Ruling No. GUJ/GAAR/R/40/2021 dated August 11, 2021] held that, assessee's activity of re-gasification of LNG owned by its customers, amounts to rendering of service by Job Work and leviable to GST @12%.

Citation :
Advance Ruling No. GUJ/GAAR/R/40/2021 dated August 11, 2021

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1999

(Excl. of GST ₹359)

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3499

(Excl. of GST ₹629)

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4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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