The Gujarat Authority of Advance Ruling (AAR) ruled that the services of stevedoring, storage, bagging, stuffing, again transportation of the goods temporarily imported to India to be ‘export of service’ from 1 February 2019.
The applicant M/s. Manoj Bhagwan Mansukhani (M/s.Rishi Shipping) has submitted that the foreign supplier cannot afford to pay GST on their service charges as their services are rendered on foreign goods in custom bonded warehouses; that the cargo will go directly from vessel to custom bonded warehouses and these goods never cross the customs barrier and mix-up with the indigenous goods; that these goods were temporarily imported to India for export purpose and stored in customs bonded warehouses and exported from there to outside India. The applicant has stated that they as the service providers do stevedoring, transportation, storage, bagging, stuffing and again transportation of the goods which are temporarily imported.
The applicant has sought the advanced ruling on the issue whether above described services(in brief facts) considered to be Export of Service or not. If Yes, then we are eligible for Zero Rated Supply under Section 16 of the IGST Act, 2017.
The coram of Sanjay Saxena and Mohit Aggarwal ruled that the services such as stevedoring, transportation, storage, bagging, stuffing, and again transportation of the goods (which have been temporarily imported into India) rendered by the applicant M/s. Manoj Bhagwan Mansukhani (M/s.Rishi Shipping), shall not be considered as ‘export of service’ up to January 31, 2019, but shall be considered as ‘export of service’ w.e.f. February 1, 2019, onwards.
The Authority held that the applicant will not be eligible for ‘Zero-rated supply’ under Section 16 of the IGST Act, 2017, up to January 31, 2019. However, they shall be eligible for ‘Zero-rated supply’ as per the provisions of Section 16(1)(a) of the IGST Act, 2017 w.e.f. February 1, 2019.
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