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

Classification of oil rigs as vessels may allow reduced GST on repair and maintenance of rigs and parts.
The commentary addresses whether oil drilling ships and rigs qualify as ships and other vessels for the reduced GST rate on repair and maintenance. It contrasts a separate taxable entry for support services to exploration, mining or drilling clarified by a TRU circular, and concludes-after reference to statutory terms, maritime certificates and case law-that the term "vessel" is broad and rigs used offshore may be characterised as vessels for claiming the reduced rate, subject to technical fact-specific analysis.