In re Vaibhavi Dredging (GST AAAR Goa)
The appeal before the Goa Appellate Authority for Advance Ruling (AAAR) was filed by a registered taxpayer engaged in dredging, desilting, and related support services. The appellant had sought an advance ruling on whether dredging/desilting and related services provided to the Captain of Ports Department, Government of Goa, qualified for GST exemption under Entry 3 (pure services) or Entry 3A (composite supply where goods do not exceed 25% of value) of Notification No. 12/2017-Central Tax (Rate).
The appellant contended that the dredging and desilting of River Sal was a service provided to the State Government in relation to functions such as waterways, water management, flood control, fisheries, public health, sanitation, and environmental protection. It was argued that the work constituted a pure service because it was executed using the appellant’s own machinery and manpower without transfer of materials to the Government. Alternatively, the appellant submitted that even if the supply was treated as a composite supply, the value of goods involved was below 25% of the contract value, thereby qualifying for exemption under Entry 3A. The appellant also relied on constitutional provisions, CBIC circulars, and advance rulings from other States in support of its claim.
