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Determination of place of supply is kept out of purview of Authority for Advance Ruling

October 8, 2018[2018] 98 taxmann.com 141 (AAR - GUJARAT)
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CGST : 'Place of supply' is not covered by Section 97(2) and, therefore, application seeking advance ruling on issue as to whether IGST Act, 2017 is applicable to port trust related services provided to out of sate registered dealer being intrinsically related to determination of place of supply of service by the applicant is to be rejected

• The applicant was providing various services like Pilotage, Berthing, Cargo Handling, Warehousing etc. in relation to import and export of goods at Port of Kandla. 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, Anchorage Charges etc. Service was provided to dealers within the state and outside the state.

• The applicant had raised the question for advance ruling 'whether IGST was applicable to port related services provided to out of the state registered dealer or CGST and SGST would apply'.

• As per Section 7 of the IGST Act, 2017, subject to the provisions of section 12, supply of services, where the location of the supplier and the place of supply are in (a) two different states; (b) two different Union territories; or (c) a State and a Union territory shall be treated as a supply of services in the course of inter-State trade or commerce.

• As per Section 8 of the IGST Act, 2017, subject to the provisions of section 12, supply of services where the location of the supplier and the place of supply of services are in the same State or same Union Territory shall be treated as intra-State supply.

• In view of the aforesaid statutory provisions, the place of supply of services of the applicant was 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 was intrinsically related to determination of 'place of supply' of service by the applicant.

• As the 'place of supply' was not covered by Section 97(2) of the Acts, therefore, application for advance ruling was to be rejected without going into the merits of the case, on the issue of lack of jurisdiction, at the stage of admission.

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