Applicablity of Rental Service provided to a Transit good which was originated at Japan, store for temporary period at Indian port and again re exported to Dubai
Query (Issue) Started By: – Surendra Prasad Dated:- 24-1-2019 Last Reply Date:- 27-1-2019 Goods and Services Tax – GST
Got 9 Replies
GST
Dear Sir/Madam,
In regard to subject kindly guide whether GST is applicable or not.
Fact of transaction We ,are a bonded warehouse located at Kandla Port.
One of our client a foreign company, Dubai based imported Chemical from Japan and store at our bonded warehouse at Kandla port , we enter into rental agreement for storing his chemical at Kandla.
The said chemical was store for period of one month. The same chemical parcel was re-exported to Dubai by the foreign cl ient without entering home market
Now we are billing to foreign client for rental service for the storage of parcel. Now question arises whether such type of service provided at Indian port bonded warehouse GST
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ai. From Bonded ware house at Kandla port, it was reexported to another country( UAE) Dubai.I am the owner of Bonded Warehouse . I have to collect the storage charges.
Whether service provided by bonded ware house at Indian port to Dubai based company is liable to GST ? or since good doesnot enter India GST is not leviable on the services provided? or if applicable whether C+Sgst or IGST.
Please guide.
Reply By KASTURI SETHI:
The Reply:
Dear Sh.Prasad Ji, I have posted the case law in order to understand the situation. This case law is not fully applicable to the situation explained by you. In my view, this situation consists of two components . 1.Supply of service 2 Supply of goods for re-export. In the first situation, you have provided/supplied rewarehousing services (rental) and charged the amount (consideration) for one month. In this instance, place of supply is in taxable territory (India) and within same State. It is not export of service. Hence CGST and SGST payable. Re-ex
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y, therefore, question relating to goods does not arises.
Moreover, in respect of query, the renting of immovable property (ware housing service) is very well covered by the Section 13 (4) of IGST Act, 2017, as location of immovable property is India (as per the definition “India” includes territorial water), therefore, although immovable property is as Customs Area, As rightly viewed by Sh. Kasturiji Sir, CGST + SGST is applicable for the services rendered.
Any different view is highly solicited.
Thanks,
With regards,
Reply By Surendra Prasad:
The Reply:
In regards to above subject , had instead of renting of immovable property( ware housing services), our service fall under cargo handling service , i.e we store at bonded ware house chemical , we provide heating on chemical while storage for the chemical , we provide security also., we have taken insurance for product also.
Had there will be any change from GST applicablity if we are providing cargo handling services at our T
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