Export of goods and services

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Kaustubh Ram Karandikar (Querist)

11 July 2019 According to international trade custom, a foreign flag vessel is considered a foreign territory even if docking in the waters/port of another country. E.g. a vessel carrying German flag and docked at the Bombay port, is ‘foreign territory’ under this convention. Accordingly, goods supplied by an Indian GST registered dealer to a German vessel docked at Bombay port– is it export? Similarly, services supplied by an Indian GST registered dealer to a German vessel docked at Bombay port– is it export? If yes, under which provisions?

Rajesh Kumar

Rajesh Kumar (Expert)

12 July 2019 As per International conventions, a foreign vessel is treated as foreign territory- True. But it has nothing to do with GST provisions. Issues in connection with GST has to be answered through GST provisions.
Supply to foreign going vessel, be it India or German, is not an export. It is a supply within the state- territorial water comes within the definition of coastal state- and it is an intra-state supply attracting CGST/SGST. Various rulings of AAR has already come on the issue.

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