Services for Loading & Unloading of Imported Pulses from Foreign Country are not Exempt Under GST | AAR
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- Last Updated on 24 July, 2023
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Case Details: Authority for Advance Rulings, West Bengal Sona Ship Management (P.) Ltd., In re - [2023] 152 taxmann.com 486 (AAR-WEST BENGAL)
Judiciary and Counsel Details
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- Sarthak Saxena & Joyjit Banik, Member
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Ms. Neha Agarwal, CA for the Applicant.
Facts of the Case
The applicant was engaged in stevedoring & cargo handling and also providing services relating to loading and unloading of imported unprocessed “toor”, “whole pulses” and “black matpe”. It filed an application for advance ruling to determine whether services for loading & unloading of imported pulses provided by applicant would be exempt under GST.
AAR Held
The Authority for Advance Ruling noted that as per serial number 54 of Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017, services relating to agricultural produce would be exempt. However, a conjoint reading of aforesaid entry and definition of “agricultural produce” delineates that said services can be eligible for exemption where such services would be supplied till products shall be taken to primary market for disposal. The term primary market in common parlance would refer to farmers market like “mandi” or “arhat” located in home country and not foreign country, where farmers directly sell their product to buyers.
In the instant case, the applicant furnished photocopies of “Bill of Lading” and “Bill of Entry for Home Consumption” wherefrom it appeared that goods were imported from outside country. Thus, such goods would be cultivated in a foreign country and thereafter imported into India. Therefore, any services supplied for loading and unloading after goods left primary market would not qualify for exemption under serial number 54 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.
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