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In the case at hand, the applicant is extending the 'support services for water transport' which includes services facilitating berthing of the vessel, liaising with jurisdictional authorities and attend to the requirement of the vessel when the vessel is in Indian territory and the service jurisdiction of the applicant rests with the applicant until the vessel exits the Indian waters. The proposed services is not an 'Export of Service' as per Section 2(6) of IGST Act, 2017 in as much as the Place of Supply is not outside the taxable territory. Accordingly, the proposed supply classifiable under SAC 9967 is taxable to GST @ 18% under Sl.No. 11(ii) of the Notification No. 11/2017-C.T.(Rate) dated 28.06.2017.

Classification of service— In the instant case, the applicant is Un-registered under GST. The applicant has sought Advance Ruling on the following questions:-

1. The Applicant would like to seek a ruling on whether the provision of specified services would qualify as “support services” under SAC 9985 of Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017.

2. The Applicant would also like to seek a ruling on whether such support services would be considered as export of services based on the present facts and circumstances.

The applicant has stated that they propose to offer support services to their customers located outside India on a Principal- to- Principal basis (P2P). The customers of the applicant are in the business of chartering vessels for transportation of goods into India and moving goods outside India and for the provision of aforesaid services, they propose to render services to vessels/ship owners to ensure smooth operations while the vessel/ship arrive in India.

The applicant has claimed that the services will be in the nature of 'support services' classifiable under SI. No. 23(iii) of Notification No. 11/2017-CT (Rate) dated 28.06.2017 under heading SAC 9985 which deals with “Support Services other than (i) and (ii)above.

The next question for consideration is whether such support services would be considered as export of services.

In the case at hand, the applicant is extending the 'support services for water transport' which includes services facilitating berthing of the vessel, liaising with jurisdictional authorities and attend to the requirement of the vessel when the vessel is in Indian territory and the service jurisdiction of the applicant rests with the applicant until the vessel exits the Indian waters. Thus, the applicant extends vessel related services to their customers when the vessel enters the Indian territory and the service with respect to the said vessel ends when the vessel exits the Indian territory. In other words, the proposed services are rendered in respect of the vessels which are physically available in the Indian Territory and therefore, we find that the proposed services are squarely covered under Section 13(3) of IGST Act.

Having decided that the 'Place of supply' is the taxable territory wherein the vessels call in, the condition of the place of supply being outside India is not satisfied in the case at hand. Therefore, the proposed supply is not an 'Export of Service'.

Held that— The Applicant's business/ proposed transaction is liable to be classified under SAC 9967 and is liable to CGST @ 9% as per SI.No. 11(ii) of Notification No. 11/2017-C.T.(Rate) dated 28.06.201.

The proposed services is not an 'Export of Service' as per Section 2(6) of IGST Act, 2017 in as much as the Place of Supply is not outside the taxable territory.

In the case at hand, the applicant is extending the 'support services for water transport' which includes services facilitating berthing of the vessel, liaising with jurisdictional authorities and attend to the requirement of the vessel when the vessel is in Indian territory and the service jurisdiction of the applicant rests with the applicant until the vessel exits the Indian waters. The proposed services is not an 'Export of Service' as per Section 2(6) of IGST Act, 2017 in as much as the Place of Supply is not outside the taxable territory. Accordingly, the proposed supply classifiable under SAC 9967 is taxable to GST @ 18% under Sl.No. 11(ii) of the Notification No. 11/2017-C.T.(Rate) dated 28.06.2017.

Classification of service— In the instant case, the applicant is Un-registered under GST. The applicant has sought Advance Ruling on the following questions:-

2. The Applicant would also like to seek a ruling on whether such support services would be considered as export of services based on the present facts and circumstances.

The next question for consideration is whether such support services would be considered as export of services.

The proposed services is not an 'Export of Service' as per Section 2(6) of IGST Act, 2017 in as much as the Place of Supply is not outside the taxable territory.