In re Advait Mining And Constructions LLP (GST AAR Odisha)
The Odisha Authority for Advance Ruling has clarified the Goods and Services Tax (GST) implications for Advait Mining And Constructions LLP, which provides logistics services to M/s Pioneer Aluminum Industries Limited, a Special Economic Zone (SEZ) unit in Andhra Pradesh. The services include loading and transporting bauxite from a mine in Odisha to a railway siding, as well as other related activities. The applicant sought clarification on whether these services are taxable, the applicable tax rate, and if they constitute an inter-state or intra-state supply.
The authority determined that since the recipient of the services is a unit located in an SEZ, the supply of services falls under the category of a “zero-rated supply” as defined by Section 16(1)(b) of the IGST Act, 2017. This classification applies because the services, which are related to cargo handling and are integral to the recipient’s authorized operation of manufacturing alumina, are provided to an SEZ unit. Consequently, the supply is considered an inter-state supply, but it is zero-rated, meaning GST is not charged on the invoice. The supplier may, however, claim a refund of any input tax credit.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, ODISHA
