SHIP REPAIR SERVICE THROUGH SUB CONTRACTOR

[SOPL SOPL]

Dear Sir / madam

We received work order for repair and maintenance services to ships and their parts , components thereof.

We subcontracted this work to some other third party.

Third party raise invoice to us and we raise invoice to shipping company.

Read with Notification No. 02/2021- Central Tax (Rate) dated 2nd June , 2021 --

1) Can the subcontractor raise invoice @ 5%?

2) Can we raise invoice @ 5% on shipping company?

Kindly advise with relevant case laws ,circulars,advance rulings etc., if any.

AI Summary

5% GST Rate Valid for Both Main Contractor and Subcontractor in Ship Repair Services Per Notification No. 02/2021. A discussion in a forum revolves around the applicability of a 5% GST rate for ship repair services subcontracted to a third party. The original poster queries whether both the subcontractor and the main contractor can invoice at this rate. Responses clarify that, according to Notification No. 02/2021, both parties can charge 5% GST, provided conditions are met. It is emphasized that the subcontractor's role does not alter the nature of the service provided. References to relevant case laws and rulings are made to support the interpretation that the concessional rate applies to both the main contractor and subcontractor.