Project Management Services fall under SAC 998349, subject to 18% GST: AAAR

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  • Last Updated on 30 January, 2023

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Case Details: Appellate Authority for Advance Ruling, Maharashtra Worley Services India (P.) Ltd., In re - [2023] 146 483 (AAAR-MAHARASHTRA)

Judiciary and Counsel Details

    • Dr D.K. Srinivas & Rajeev Kumar Mital, Member
    • Rohit JainJignesh GhelaniDarshan Madekar for the Appellant.

Facts of the Case

The appellant was a global engineering company which entered into contract with Vedanta limited to provide Project Management Consultancy services. The appellant was required to review, monitor, manage and control all aspects of execution of projects on behalf of Vedanta Limited. It filed an application for advance ruling to determine the taxability of services provided by it. The AAR ruled that professional, technical and business services supplied by appellant to Vedanta Limited would be covered under residual entry No. 21(i) of Notification No 11/2017 – C.T (Rate) dated 28.06.2017, attracting GST at rate of 18%. It filed appeal against the order.


The Appellate Authority for Advance Ruling (AAAR) noted that services relating to physical performance or activities which shall be directly used in mining and extraction operations would fall under SAC 998621 but services provided by appellant would be of review, monitoring, management and supervision of project works which shall be done towards realization of mining activities. Moreover, it was evident that services covered under SAC 998341 would be essentially related to survey and exploration of mineral deposits and study of their properties. Hence, the impugned services would also not be covered under SAC 998341.

The AAAR also noted that the services provided by appellant shall be in nature of professional and technical services as it would require technically qualified and trained professionals. Thus, it was held that impugned services would merit classification under SAC 998349 bearing description “Other technical and scientific services” and taxable at 18% under GST.

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