In the recent advance ruling bearing No. GAAR/AR-2021/F-40/B-145/147, the applicant (Petronet LNG Ltd.)  provides re-gasification services to its registered customers. Petronet receives the LNG belonging to the customer, stores it, re-gasifies it and supplies the RLNG to the customer. It was submitted that their activity of providing the service for regasification of LNG to RLNG is classifiable under the below mentioned entry (id) and not under (iv), thus tax shall be applicable at the rate of 6 % CGST and 6 % GGST.

Entries at item, (id) and item (iv) under heading 9988 of Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017 are as follows-

(3)	(4)	(5)
(id) Services by way of job work other than (i), (ia), (ib) and (ic) above;	6	–
(iv) Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (id), (ii), (iia) and (iii) above	9	–

The term Job work has been defined in section 2(68) of CGST Act,2017 as under-

“Job work means any treatment or processing undertaken by a person on goods belonging to another registered person and the expression ‘job worker’ shall be construed accordingly.”

In view of the above, it may be seen that there is a clear demarcation between scope of the entries at item (id) and item (iv) under heading 9988 of Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017. Entry at item (id) covers only job work services as defined in section 2 (68) of CGST Act, 2017, that is, services by way of treatment or processing undertaken by a person on goods belonging to another registered person. On the other hand, the entry at item (iv) specifically excludes the services covered by entry at item (id), and therefore, covers only such services which are carried out on physical inputs (goods) which are owned by persons other than those registered under the CGST Act.

It was therefore held that the activity carried on by the applicant on LNG belonging to GST registered customer is covered at entry (id) of the above notification and liable to CGST at 6%.