2026-VIL-119-AAR
  1. Home
  2. 2026-VIL-119-AAR

SGST Advance Ruling Authority

GST – Maharashtra AAR – Classification of supply of warehoused goods to vessels as ship stores – Applicant, a bonded warehouse operator, imports goods storing them in its bonded warehouse under Section 58A of the Customs Act, 1962 and supplies these warehoused goods to foreign-going merchant vessels on foreign run, Indian Navy ships, and Indian Coast Guard ships, against an intent to purchase or purchase order, with physical transfer occurring within Indian ports and territorial waters - Whether the outward supplies of warehoused goods made from the bonded warehouse to ocean-going merchant vessels on foreign run, Indian Navy ships, and Indian Coast Guard ships qualify as "export of goods" under Section 2(5) of the IGST Act, 2017 and thereby as a zero-rated supply under Section 16 of the IGST Act – HELD - To qualify as export of goods under Section 2(5) of the IGST Act, the provision requires a destination-based test of taking goods out of India to a place outside India. Since the recipient vessels are located within the territory of India (including territorial waters and exclusive economic zone as defined in Section 2(56) of the CGST Act, 2017) at the time of supply, and the physical transfer of goods occurs within India, the statutory definition of export is not satisfied - A supply that takes place on Indian soil or in Indian waters does not amount to taking goods out of India to a place outside India. Further, such transactions are covered under paragraph 8(a) of Schedule III to the CGST Act, 2017, read with Section 7(2)(a) thereof, which provides that supply of warehoused goods to any person before clearance for home consumption shall be treated neither as a supply of goods nor as a supply of services. Consequently, these transactions are entirely out of the field of supply upon which the GST levy is founded, and the question of zero-rating does not arise as zero-rating presupposes a supply – The instant transactions do not qualify as export of goods or zero-rated supplies under Section 16 of the IGST Act, 2017, however it is treated as neither a supply of goods nor a supply of services under paragraph 8(a) of Schedule III to the CGST Act read with Section 7(2)(a) thereof – Ordered accordingly
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST Recent Updates: GSTAT, EWB...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?