Location of supplier of services
This query is : Resolved
18 November 2022
Sea going vessel comes under agency of the assessee. Port dues etc are paid to port authorities.
Assessee is registered in State of Maharashtra
My question is when vessel comes in Port outside Maharashtra IGST will be applicable or CGST & SGST
Assessee is registered in State of Maharashtra
My question is when vessel comes in Port outside Maharashtra IGST will be applicable or CGST & SGST
09 July 2024
When a sea-going vessel registered in Maharashtra docks at a port outside Maharashtra, the applicability of IGST (Integrated Goods and Services Tax), CGST (Central Goods and Services Tax), and SGST (State Goods and Services Tax) depends on the nature of the transaction and the place of supply rules under GST.
### Port Dues and Similar Charges:
1. **Service Provided by Port Authorities:**
- Port dues, pilotage charges, berth hire charges, etc., provided by port authorities to the vessel are considered services under GST.
2. **Place of Supply Rules:**
- According to GST law, the place of supply for services related to immovable property (like port services) is determined based on the location of the immovable property (port).
3. **Applicability of GST:**
- If the port is located outside Maharashtra (say in Gujarat), the supply of services (port services) is considered an interstate supply.
- Therefore, IGST (Integrated GST) would be applicable on these services.
- IGST is a combination of CGST (collected by the Central Government) and SGST (collected by the State Government of the destination state, in this case, Gujarat).
### Practical Application:
- **Example:** If a sea-going vessel registered in Maharashtra docks at a port in Gujarat and pays port dues to the Gujarat port authorities:
- The port services provided by the Gujarat port authorities to the vessel would attract IGST.
- The Maharashtra-based assessee (the owner or agent of the vessel) would need to pay IGST on these services.
- The GST rate applicable would be as per the category of service provided by the port authorities.
### Conclusion:
In summary, when a sea-going vessel registered in Maharashtra docks at a port outside Maharashtra (such as Gujarat), the port services provided by the port authorities to the vessel will attract IGST. The Maharashtra-based assessee will be liable to pay IGST on these services as per the GST rates applicable to such services.
### Port Dues and Similar Charges:
1. **Service Provided by Port Authorities:**
- Port dues, pilotage charges, berth hire charges, etc., provided by port authorities to the vessel are considered services under GST.
2. **Place of Supply Rules:**
- According to GST law, the place of supply for services related to immovable property (like port services) is determined based on the location of the immovable property (port).
3. **Applicability of GST:**
- If the port is located outside Maharashtra (say in Gujarat), the supply of services (port services) is considered an interstate supply.
- Therefore, IGST (Integrated GST) would be applicable on these services.
- IGST is a combination of CGST (collected by the Central Government) and SGST (collected by the State Government of the destination state, in this case, Gujarat).
### Practical Application:
- **Example:** If a sea-going vessel registered in Maharashtra docks at a port in Gujarat and pays port dues to the Gujarat port authorities:
- The port services provided by the Gujarat port authorities to the vessel would attract IGST.
- The Maharashtra-based assessee (the owner or agent of the vessel) would need to pay IGST on these services.
- The GST rate applicable would be as per the category of service provided by the port authorities.
### Conclusion:
In summary, when a sea-going vessel registered in Maharashtra docks at a port outside Maharashtra (such as Gujarat), the port services provided by the port authorities to the vessel will attract IGST. The Maharashtra-based assessee will be liable to pay IGST on these services as per the GST rates applicable to such services.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Liable to deduct tds and 44ADA
- Non issue of e way bill
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- Subscription paid to foreign customer
- Two seprate Invoice needed
- Gstr7 vs Gstr3b 2026
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS PROCEDURE ON SALE OF IMMOVABLE PROPERTY BY NRI
- Refund of 20%pre-deposit paid for stay application
- ASISSE return under the provisions of the Collection of Statistics Act, 2008 (7 of 2009)
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
