In re GSPC (JPDA) LTD. (GST AAR Gujarat)
Issue: Whether payment of settlement fees against demand made by Autoridade Nacional do Petroleo E Minerais (ANP) vide letter dated 15.07.2015 attract levy of GST under GST regulations. Ans. GSPC (J) is liable to pay IGST, vide Reverse Charge Mechanism, on Import of Subject supply of Service from ANP.
BRIEF FACTS
The applicant M/s. GSPC(JPDA)LTD., has submitted that petroleum existing within the Joint Petroleum Development Area(JPDA) is a resource exploited jointly by Timor-Leste and Australia; that the applicant along with other concessionaries entered into Production Sharing Contract(PSC) dated 15th November, 2006 with Timor Sea Designated Authority for undertaking the exploration activities in the Block JPDA 06-103 awarded to it, in the Joint Petroleum Development Area(JPDA).
2. The applicant has submitted that Autoridade Nacional do Petroleo E Minerals(ANP) is Timor Leste’s institution and is vested with administrative and financial autonomy to act as regulatory authority for the oil, gas and mineral related activities in accordance with the provisions of the Petroleum Activities Law, Interim Petroleum Mining Code, the Timor Sea Treaty and the Diploma Ministerial on mineral activities; that GSPC(JPDA) holds 20% participating interest(PI) in Block JPDA 06-103 and the list of other concessionaries and their participating interest(PI) are as follows:-
