In re Kandla Port Trust (GST AAR Gujarat)
The applicant has raised the question for advance ruling ‘whether IGST is applicable to port related services provided to out of the state registered dealer or CGST and SGST would apply ?
Place of supply of services of the applicant is required to be determined in order to determine whether IGST would be applicable or CGST and SGST would be applicable on port related services being provided by the applicant. Thus, the entire issue is intrinsically related to determination of ‘place of supply’ of service by the applicant.
Advance Ruling authority has been constituted in exercise of the powers conferred by section 96 of the Gujarat Goods and Services Tax Act, 2017, which Act extends to the whole of the state of Gujarat. This authority is a creature of statute and has to function within the legal boundary mandated by the Act. As the ‘place of supply’ is not covered by Section 97(2) of the Acts, this authority is helpless to answer the question raised in the application, as it is lacking jurisdiction to decide the issues. The jurisdiction of this authority does not extend to the questions on determination of ‘place of supply’
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
The applicant Kandla Port Trust (Deendayal Port Trust – DPT), has submitted that it is providing various services like Pilotage, Berthing, Cargo Handling, Warehousing etc. in relation to import and export of goods at Port of Kandla. It is submitted that the applicant collects Port dues from port users and also collects other vessel and goods related charges like Port Dues, Demurrage, On-Board labour charges, Wharfage charges, Anchorage Charges etc. It is submitted that service is provided to dealers within the state and outside the state.
2. The applicant referred to provisions of Section 5, 7 and 12 of Integrated Goods and Services Act, 2017 (herein after referred to as the ‘IGST Act, 2017’). It also submitted that the applicability of Section 9 of the IGST Act, 2017 is also not clear as the definition of the term ‘territorial waters’is not defined in the Act or General Clauses Act.
3. The applicant has raised the question for advance ruling ‘whether IGST is applicable to port related services provided to out of the state registered dealer or CGST and SGST would apply ?
