GST Payable On Services Of Loading And Unloading Of Imported Unprocessed “Toor” And “Whole Pulses” And “Black Matpe”: West Bengal AAR
Mariya Paliwala
11 July 2023 1:00 PM IST
The West Bengal Authority of Advance Ruling (AAR) has held that GST is payable on services of loading and unloading of imported unprocessed "toor" "whole pulses" and "black matpe".The bench of Sarthak Saxena and Joyjit Banik has observed that any services supplied for loading and unloading as supplied by the applicant after the goods left the primary market do not qualify for GST...
The West Bengal Authority of Advance Ruling (AAR) has held that GST is payable on services of loading and unloading of imported unprocessed "toor" "whole pulses" and "black matpe".
The bench of Sarthak Saxena and Joyjit Banik has observed that any services supplied for loading and unloading as supplied by the applicant after the goods left the primary market do not qualify for GST exemption.
The applicant is in the business of stevedoring and cargo handling in the Kolkata Dock Complex and is specialized in handling cargo such as food grain, fertilizers, coal, iron ore, break bulk or project cargo, etc.
The applicant sought an advance ruling on the issue of whether the services in relation to loading and unloading of imported unprocessed toor, whole pulses, and black matpe qualify for exemption under serial number 54(e) of notification no. 12/2017-central tax (rate) dated June 28, 2017.
The applicant contended that no activities are being carried out by him that alter the essential characteristics of the yellow toor dal and black matpe. Therefore, the goods can be regarded as "agricultural produce," and services relating to the unloading of the goods are exempt from payment of tax.
The AAR has ruled that pulses (de-husked or split) are not considered agricultural produce since the process of de-husking or splitting pulses is usually not carried out by farmers or at the farm level but by the pulse millers. It, therefore, appears that for the purpose of agricultural produce, the processes and services that are applied until the goods are at the farmer's hand to make them marketable for the primary market are to be considered. Any services supplied for loading and unloading after the goods left the primary market do not qualify for exemption under serial number 54 of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017.
Applicant’s Name: Sona Ship Management Private Ltd
Date: 30/05/2023
