Court Buzz, GST

Supply of service for construction in Bangladesh is not an export : West Bengal AAR.

Case: Maninder Singh (Middle East Pipeline Products)

Forum: West Bengal AAR


The Numaligarh Refinery Ltd (NRL) awarded the Applicant the contract for the installation of the pipeline between India and Bangladesh. The Applicant sought an advanced ruling on whether the supply of service to NRL for the above construction in Bangladesh is an export and exempt under the GST Act.  If the answer to the above query would be negative, then what should be the appropriate tax rate. 

Key points

The AAR in it’s findings held that NRL has awarded the contract to the Applicant for construction of the pipeline in Bangladesh and pays the consideration. NRL is, therefore, the recipient in terms of Section 2(93)(a) of the GST Act. The NRL being registered and resident of India, the location of the recipient of the service shall be in India in terms of Section 2(14)(d) of the IGST Act. The Applicant’s service will not, therefore, be the export of service within the meaning of Section 2(6) of the IGST Act. The Applicant’s service is taxable @ 18% in terms of Entry No. 3(iii)(c) of Notification No. 11/2017 CT (Rate) dated 28/06/2017, as amended from time to time.

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