In re Globe Moving and Storage Pvt. Ltd. (GST AAR Karnataka)
M/s Globe Moving & Storage Pvt. Ltd. filed an application for an advance ruling regarding the exemption from Goods and Services Tax (GST) on services provided to foreign clients unregistered in India. The company, operating as a Goods Transport Agency (GTA) and providing packing and moving services, assists foreign entities in transporting goods to India, handling customs clearance and related services. The foreign clients, who have no business presence in India, engage Globe Moving for “door-to-door” delivery services, including customs clearance and transportation. The applicant sought to confirm if their services, categorized as “pure services,” were exempt from GST under Notifications No. 32/2017-Central Tax (Rate) and No. 33/2017-IGST (Rate), which apply to services provided by a GTA to an unregistered person.
The ruling found that the exemption under the specified notifications does not apply to the services provided by Globe Moving. According to the exemption criteria, the GTA must issue a consignment note, which Globe Moving did not do. Additionally, the company provides a combination of services including customs clearing, port handling, and destination services, which are charged separately. Therefore, the applicant’s services do not qualify as “pure services” under the exemption rules. The ruling concludes that the exemption under entry 21A of Notification No. 12/2017-Central Tax (Rate) and entry 22A of IGST Notification No. 33/2017-IGST (Rate) is not applicable to Globe Moving’s operations.
