2018 (10) TMI 447 - AAR - GST

Levy of IGST - Supply of services - services like Pilotage, Berthing, Cargo Handling, Warehousing etc. in relation to import and export of goods at Port of Kandla - whether IGST is applicable to port related services provided to out of the state registered dealer or CGST and SGST would apply? Held that - 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 - The applicant has filed application for advance ruling wherein provisions of Sections 5, 7 and 12 of the IGST Act, 2017 have been referred. Thus, the applicant is well aware that the issue is related to place of supply . This 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 . The application for Advance Ruling of M/s. Kandla Port Trust (Deendayal Port Trust) is rejected, under sub-section (2) of section 98 of the CGST Act, 2017 and the GGST Act, 2017.

Summary

Issues Involved:
- Applicability of IGST on port-related services provided to out-of-state registered dealer or CGST and SGST application

Analysis:
The applicant, Kandla Port Trust (Deendayal Port Trust - DPT), submitted that it offers various services related to import and export activities at the Port of Kandla, including Pilotage, Berthing, Cargo Handling, Warehousing, and collects Port dues and other related charges. The key query raised was whether IGST is applicable to services provided to out-of-state registered dealers or if CGST and SGST should apply. The applicant highlighted the ambiguity regarding the definition of "territorial waters" under the IGST Act, 2017.

The Authority for Advance Ruling considered the provisions of the CGST Act, 2017, the GGST Act, 2017, and the IGST Act, 2017. It was noted that CGST and SGST are leviable on intra-state supplies, while IGST is applicable to inter-state supplies. The determination of whether a supply is inter-state or intra-state is governed by Sections 7 and 8 of the IGST Act, 2017, based on the location of the supplier and the place of supply.

The Authority emphasized that the issue at hand revolves around determining the "place of supply" of services provided by the applicant to ascertain the tax applicability. However, since the "place of supply" is not explicitly covered under Section 97(2) of the Acts, the Authority lacked jurisdiction to decide on this aspect. Consequently, the application for Advance Ruling by Kandla Port Trust was rejected on the grounds of jurisdictional limitations, without delving into the merits of the case.

In conclusion, the rejection of the application was based on the Authority's inability to address the question related to the determination of the "place of supply" due to jurisdictional constraints. The decision was made under sub-section (2) of section 98 of the CGST Act, 2017, and the GGST Act, 2017.