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2024 (11) TMI 974 - AAR - GSTExemption from charge of GST under Notification No.32/2017-Central Tax (Rate) dated 13-10-2017 (entry number 21A) IGST Notification No.33/2017-IGST(Rate) dated 13-10-2017 (entry number 22A) - supply of pure service made by our organization, (being a GTA- cum-Packing Moving Company) to or on behalf of a foreign entity unregistered in India (unregistered person) - HELD THAT - From the description of service in the aforesaid entry at S.No 21A it is evident that the said exemption is exclusively in respect of Services provided by a goods transport agency to an unregistered person, including an unregistered casual taxable person, other than certain specified recipients. The term goods transport agency is defined in para 2 (ze) of the Notification supra, goods transport agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. In the instant case the applicant has nowhere claimed to have issued a consignment note in relation to transport of goods and therefore his claim that he is providing goods transport agency service is not justified. It is also observed that applicant is providing a bundle of services of customs clearance (CHA service), loading unloading services, port handling, liner fee and destination services in India. Further it is observed from the copy of invoice raised by the applicant that many services are individually charged. The exemption is not applicable to the applicant's case.
Issues:
Applicability of exemption under Notification No. 32/2017-Central Tax (Rate) and IGST Notification No. 33/2017-IGST(Rate) for services provided by a Goods Transport Agency (GTA) to unregistered foreign entities. Analysis: The applicant, a GTA-cum-Packing & Moving Company, sought an advance ruling on whether the supply of pure service to unregistered foreign entities is exempt from GST under specific notifications. The applicant provides services to foreign clients for exports to India on a Door-to-Door delivery basis, including customs clearance, transportation, and related supporting services. The applicant claims to provide only "pure service" without using any materials and receives consideration in foreign currency from unregistered foreign clients without a place of business in India. The applicant's interpretation of the law is based on the exemption under Notification No. 32/2017-Central Tax (Rate) and IGST Notification No. 33/2017-IGST(Rate) for supply of pure service by an Indian GTA entity to unregistered foreign entities not having a place of business in India. The applicant contends that they fulfill the conditions for exemption from charging GST on invoices to foreign clients. During the personal hearing, the applicant reiterated the facts and arguments presented in their application. The Authority for Advance Ruling in Karnataka considered the submissions, facts, and arguments made by the applicant. The Authority noted that the CGST Act and KGST Act are similar in relevant matters. However, the Authority found that the applicant does not qualify for the exemption under entry number 21A of the Notifications due to the nature of services provided. The exemption is applicable to services provided by a goods transport agency to unregistered persons, excluding specific recipients. The applicant did not issue consignment notes related to transport of goods and provided a bundle of services beyond GTA services, including customs clearance, loading/unloading, port handling, liner fee, and destination services. As individual services were charged separately, the exemption did not apply to the applicant's case. Therefore, the Authority ruled that the exemption under the mentioned Notifications is not applicable to the services provided by the applicant.
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