REPAIR TO OIL RIGS

[SOPL SOPL]

Dear Sir/Madam

Is the oil drilling ships covered under Ships /Vessels under Gst law?

There by can we avail the benefit of 5% Gst rate on Maintenance Repair or Overhaul services to these Oil rigs and their parts and components thereof?

Ref: Notification No. 02/2021-Central Tax (Rate) dated 2nd June 2021.

AI Summary

Debate on Oil Drilling Ships' Classification as Vessels Under GST Law for Reduced 5% Rate on Repairs A discussion on whether oil drilling ships qualify as vessels under GST law, allowing them to benefit from a 5% GST rate on maintenance and repair services. Participants debated the classification of oil rigs as vessels, referencing various notifications, circulars, and legal precedents. Some argued that oil rigs could be considered vessels due to their operational similarities and legal interpretations, while others highlighted the technical distinctions between vessels and rigs. Ultimately, it was suggested that oil rigs could be classified as vessels, making them eligible for the reduced GST rate on repair and maintenance services.