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2019 (10) TMI 1138 - AAR - GSTLevy of GST - Applicant supplies foreign going vessels stores like paint, rope, spare parts, electronic equipment etc. - zero-rated supplies or not? - HELD THAT:- The supplier there is supplying warehoused goods as stores to the merchant ships on the foreign run where the goods are not to be consumed until the vessel crosses the territorial waters of India. In other words, the foreign going vessel is merely transporting the stores until it reaches a location outside India. Facts of the Applicant’s case are not similar or that specific. Foreign going vessels obtain stores and spare parts while staying anchored at a port in India. There is no reason why the part of such stores that the crew consume or is used for repairing or servicing of the vessel while in India should be treated as export. The Applicant’s supply of stores to foreign going vessels, as defined under section 2(21) of the Customs Act, 1962 Act, is not export or zero-rated supply, unless it is marked specifically for a location outside India - The Applicant is, therefore, liable to pay tax on such supplies under the GST Act or the IGST Act.
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