Tender by Navy Admiral Superintendent for “Habitability upgradation works” on board INS Ranveer liable to GST at normal Rates: AAR

The Authority for Advance Rulings (AAR) recently clarified that a tender issued by the Navy for habitability upgradation works on the warship INS Ranveer is subject to GST at normal rates. The issue was whether such services, involving structural and interior modifications to enhance the ship's habitability, could qualify for a lower tax rate or exemption under the GST law. The AAR ruled that the work falls under regular taxable services, and there are no specific provisions that allow for a reduced GST rate. This decision provides clarity for vendors involved in similar defense contracts regarding their GST liabilities.