GST levied

AAR ruling: GST levied on goods carried by Foreign-Bound ships

GST filing penalties GSTR

Authority of Advance Ruling (AAR), Andhra Pradesh passed instructions, GST shall be levied on supplies from Customs warehouse to the Foreign bound vessels, authorities will inspect closely on the supplies. AAR bench states that the petitioner, “Fairmacs Ship Stores” holder of special warehouse license is GST liable on the outward supplies equipped to these vessels.

AAR ruling: GST levied on goods carried by Foreign-Bound ships, GST registration filing

AAR considers these as inter-state provisions to the vessels; however, the petitioner is eligible to claim GST from the clients. Authorities disagree on the view that GST is a tax-based consumption, and these supplies are used or consumed outside India. Abhishek Rastogi, a partner at Khaitan & Co, mentions that the norms specific to the inter-state supply have been a matter of debate.

Earlier, AAR informed that GST is levied on goods sold or traded at the duty-free outlets based on Inter-state provisions. Abhishek Rastogi further added, “The constitutional validity and arbitrariness of these supplies comes into picture for several transactions including duty-free outlets and provisions supplied to outgoing foreign vessels.

The Government has to evaluate the GST concessions on such supplies to reduce the additional tax costs, states Abhishek Jain, a Tax partner with Consultant EY India.

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