Stevedoring, storing, packing goods imported temporarily before exporting amounts to 'export of service' post February 01, 2019

Last updated: 03 May 2021

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The Gujarat Authority for Advance Ruling (AAR) determined that services like stevedoring, storage, and packing of goods temporarily imported into India for export were not considered 'export of service' before February 1, 2019. However, following an amendment to the IGST Act, these services are now classified as 'export of service' and eligible for 'zero-rated supply' status from February 1, 2019, onwards. This ruling impacts how these specific import-export related services are treated for tax purposes.

Court :
The AAR, Gujarat

Brief :
The AAR, Gujarat in the matter of M/S Manoj Bhagwan Mansukhani (M/S. Rishi Shipping) [GUJ/GAAR/R/12/2021dated January 27, 2021] ruled that services provided viz. stevedoring, transportation, storage, bagging, stuffing, and transportation of the goods which are temporarily imported into India before exporting shall not be considered as 'Export of service' upto January 31, 2019, but shall be considered as 'Export of service' w.e.f. February 01, 2019. Accordingly, it shall not be eligible for 'Zero rated Supply' under Section 16 of the Integrated Goods and Services Tax Act, 2017 ('IGST Act') upto January 31, 2019, but shall be eligible for the same w.e.f. February 01, 2019.

Citation :
M/S Manoj BhagwanMansukhani (M/S. Rishi Shipping) [GUJ/GAAR/R/12/2021dated January 27, 2021]

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