GST on System Use Gas in LNG Regasification: AAAR Gujarat remands case

In re Shell Energy India P Ltd. (GST AAAR Gujarat) Gujarat Appellate Authority for Advance Ruling (AAAR) has set aside a previous ruling concerning Shell Energy India P Ltd.’s Goods and Services Tax (GST) obligations on “System Use Gas” (SUG), a process loss during LNG regasification. The original Advance Ruling (GAAR) had determined that the value attributable to SUG should be included in the taxable value of regasification services. Shell Energy, operating an LNG regasification terminal in Hazira, Surat, challenged this ruling, arguing that SUG is an internationally recogni...