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

Concessional GST rate for ship repair services applies to both main contractor and subcontractor, subject to notification conditions.
Concessional GST under Notification No. 02/2021-CT(R) applies to ship repair and maintenance services supplied by a main contractor and by subcontractors performing identical repair services, provided the notification's conditions are met; repair activity is distinct from job-work or works contract classification. Input tax credit availability depends on specific entries in the notification and suppliers must comply with the notification's ITC conditions before applying the concessional rate.