The services of transportation by Sagar Stevedoirs pvt ltd does not qualify for exemption.

Last updated: 20 January 2021

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Shree Sagar Stevedores Pvt. Ltd. sought clarification on whether their services, involving the transportation of goods between Magdalla Port and a General Lighterage Area, were exempt from GST. The Gujarat Authority for Advance Ruling determined that these services do not qualify for the exemption provided under Entry No. 18 of Notification No. 12/2017-Central Tax (Rate). This exemption specifically applies to transportation of goods via inland waterways, which was not deemed applicable to the applicant's operations.

Court :
Gujrat AAR

Brief :
The applicant M/s. Shree Sagar Stevedores Pvt. Ltd. has submitted that they are in the business of providing services in relation to transportation of goods from Magdalla Port to the General Lighterage Area (Anchoring Point of Mother Vessel) or vice versa.

Citation :
ADVANCE RULING NO. GUJ/GAAR/R/45/2020

GUJARAT AUTHORITY FOR ADVANCE RULING,
GOODS AND SERVICES TAX,
A/5, RAJYA KAR BHAVAN, ASHRAM ROAD,
AHMEDABAD – 380 009.

ADVANCE RULING NO. GUJ/GAAR/R/45/2020
(IN APPLICATION NO. Advance Ruling/SGST&CGST/2018/AR/54)
Date: 30.07.2020

Name and address of the applicant :M/s. Shree Sagar Stevedores Pvt. Ltd., Plot No.2107/D, Office No.102, D and I, Excelus, First Floor, Waghawadi road, Bhavnagar-364002.

GSTIN of the applicant : 24AAKCS1498M1ZR.

Date of application :10.09.2018.

Clause(s) of Section 97(2) of CGST / GGST Act, 2017, under which the question(s) raised. :(b) Applicability of a notification issued under the provisions of the Act.
(e) Determination of the liability to pay tax on any goods or services or both.

Date of Personal Hearing : 09.07.2020 (through Video Conferencing)

Present for the applicant : Shri Rajanikant Paragata.

B R I E F FA C T S

The applicant M/s. Shree Sagar Stevedores Pvt. Ltd. has submitted that they are in the business of providing services in relation to transportation of goods from Magdalla Port to the General Lighterage Area (Anchoring Point of Mother Vessel) or vice versa.

2. The applicant has submitted that Entry No.18 of the Notification No.12/2017-Central Tax (Rate) dated 28th June, 2017 inter alia exempts the Services by way of transportation of goods by inland waterways. Inland waterways have been defined in the same notification to mean as “national waterways as defined in clause(h) of section 2 of Inland Water Ways Authority of India Act, 1985 (82 of 1985) or other waterway on any inland water, as defined in clause (b) of Section 2 of the Inland Vessels Act, 1917.

To know more in details find the attachment file

FAQ :

Sagar Stevedores Pvt. Ltd. provides services related to the transportation of goods between Magdalla Port and the General Lighterage Area (Anchoring Point of Mother Vessel) or vice versa.

The applicant sought to determine if their transportation services qualified for an exemption from Goods and Services Tax (GST).

They were referring to Entry No. 18 of Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017, which exempts services by way of transportation of goods by inland waterways.

No, the Authority ruled that the services provided by Sagar Stevedores Pvt. Ltd. do not qualify for the exemption.

The exemption is specifically for transportation by inland waterways, and the Authority determined that the applicant's operations did not fall under this definition.