jetties are not covered within the expression ‘plant and machinery’ & ITC on such jetties is not available.

Last updated: 20 January 2021

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The Gujarat Authority for Advance Ruling has determined that jetties, even those built to support LNG regasification equipment, are not classified as 'plant and machinery' under GST law. Consequently, input tax credit (ITC) on the tax paid for these jetties is not admissible. This ruling clarifies the tax treatment for infrastructure projects involving specialized port facilities.

Court :
Gujrat AAR

Brief :
The applicant M/s. Swan LNG Pvt. Ltd., has submitted that they are a private limited company incorporated in India and a subsidiary of Swan Energy Limited. They have submitted that they have entered into a Concession Agreement dated 18th October, 2017 with the Gujarat Maritime Board (‘GMB’) to, inter-alia, implement the development, construction, operation and maintenance of Liquefied Natural Gas (‘LNG’) Port with a Floating Storage and Regasification Unit (‘FSRU’) facility in Jafrabad, Gujarat under the Build, own, Operate and transfer (‘BOOT’) basis. As part of developing the LNG Port and FSRU facility, the applicant would be developing an Import Terminal for FSRU near the village Bhankodar near Jafrabad, Gujarat for an output of 10 MMTPA. After development of the said Import Terminal, it would be providing LNG regasification services to prospective customers.

Citation :
ADVANCE RULING NO. GUJ/GAAR/R/46/2020

Daily Limit Reached