In re Kishor Projects Pvt Ltd (GST AAR Gujarat)
Kishor Projects Pvt Ltd sought an advance ruling on the applicability of GST exemption for its dredging services under Notification No. 9/2017-IT (Rate). The company was awarded a contract by the Gujarat Fisheries Board to conduct dredging at Porbandar Fishery Harbour, maintaining the minimum draft for smooth fishing operations. The applicant claimed eligibility for exemption under serial No. 3A of the notification, asserting that fisheries development falls under functions entrusted to Panchayats under Article 243G of the Constitution. The company also submitted certificates from the Fisheries Department confirming the work’s relevance to fisheries development and that the value of goods in the composite supply did not exceed 25%.
The Gujarat Authority for Advance Ruling (AAR) examined the exemption criteria, which require the service to be provided to the Central Government, State Government, Union Territory, or a local authority. It found that while the contract was issued by the Fisheries Department, the Gujarat Maritime Board (GMB) owns the port and receives the dredging services. Since GMB is a statutory body and not classified as a government entity or local authority under GST law, the exemption did not apply. Additionally, the term “government entity” was removed from the exemption notification in 2021, further weakening the applicant’s case. Based on these findings, the AAR ruled that the dredging services provided by Kishor Projects Pvt Ltd do not qualify for GST exemption under Notification No. 9/2017-IT.
