Do services rendered on foreign goods in custom bonded warehouses attract GST?

Last updated: 23 April 2021

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Quick Summary

This ruling clarifies whether services provided to foreign goods stored in custom bonded warehouses are subject to GST. The applicant, a service provider at Kandla port, handles imported fertilisers for Indian companies. Recently, foreign suppliers have been sending bulk fertiliser for value addition and storage in bonded warehouses without paying customs duty or GST. The applicant performs services like bagging and stuffing for these goods, which are then exported. The core question is whether these services, performed on foreign goods that haven't cleared customs and are destined for export, attract GST.

Court :
Gujrat AAR

Brief :
The applicant M/s. Manoj Bhagwan Mansukhani(M/s.Rishi Shipping),Plot No.113-116, Rishi House, Ward No.6, Industrial area, Gandhidham,Kutch-370201 is service provider operating in Kandla port; that till this timethey were handling imported fertiliser in bulk of Indian fertiliser companies,importing fertiliser from abroad and on their behalf they used to discharge bulk fertiliser from the vessels, packing it into bags and then make despatches byRail, Road and water;

Citation :
ADVANCE RULING NO. GUJ/GAAR/R/12/2021

Daily Limit Reached