Fact: 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.
Issue involved: whether IGST is applicable to port related services provided to out of the state registered dealer or CGST and SGST would apply?
Held: The Hon’ble AAR of Gujarat vide Advance Ruling/SGST&CGST/2018/AR/23 dated July 30, 2018 ruled that No other issue can be decided by the Advance Ruling Authority and therefore the Acts limit the Advance Ruling Authority to decide the issues earmarked for it under Section 97(2) of the GGST Act. 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 statutory provisions, the 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.
In view of supra observation, the Authority rules that 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’. The application is therefore rejected without going into the merits of the case, on the issue of lack of jurisdiction, at the stage of admission.
Citation: [TS-528-AAR-2018-NT]