An 18% GST would be applied to the project management consulting services said by the Maharashtra Appellate Authority for Advance Ruling (AAAR).
The two-member bench of D.K. Srinivas and Rajiv Kumar Mittal carried the ruling of AAR and sees that the services furnished via their professionals would be in the type of professional and technical services as the services furnished need technical skills and trained professionals and staff. Therefore the services furnished via the petitioner shall merit classification beneath SAC 998349 along with the details “Other technical and scientific services.”
The petitioner is engaged in Worley Parsons Limited, a global engineering company that has operations related to project delivery and consulting services to the resources and energy sectors and additional complex process industries. The petitioner has a workforce of 4,500+ professionally qualified people in India who furnishes PMC and EPCM services to local and international customers. The PMC services are furnished to different natural oil and gas companies and oil and gas mining and exploration companies.
The petitioner asks for an advance ruling for the problem that if the services furnished via the petitioner would count under SI No. 21(ia) of heading 9983 of the rate notification as “Other professional, technical, and business services relating to exploration, mining, or drilling of petroleum crude or natural gas or both” and levy a 12% GST.
The AAR the professional, technical, and business services which are provided via petitioner to VL are counted under residual entry no. 21(ii) of the rate notification, drawing the tax at an 18% GST rate.
As argued by the petitioner, they perform the operations related to the management and supervision of the project which must be performed by the petitioner’s client however it is outsourced to them as per the provision of the agreement entered between them. Hence to their customers, they are furnishing support services.
The petitioner contended that as their services are concerned with the projects which shall assist in the expansion of their customer’s mining activities, they must be termed as “support services to exploration, mining, or drilling of petroleum crude or natural gas or both.”
AAAR, the services furnished via the petitioner would not be referred to as the exploration, mining, or drilling of petroleum, natural gas, or both.
| Name of the Appellant | M/s. Worley Services India Pvt. Ltd |
| GSTIN Number | 27AAKCS1815L1Z2 |
| Date | 03.01.2023 |
| Order Number | MAH/AAAR/DS-RM/14/2022-23 |
| Present for the Appellant | i) Rohit Jain (ii) Jignesh Ghelani (iii) Darshan Madekar |
| MH AAAR | Read Order |
