Classification of service— In the instant case, the applicant has sought Advance Ruling on the following question:-

Whether the vessel support services provided by the applicant to its group company outside India qualify as “Export of services” under GST?

In the present case, the applicant is a company incorporated under the laws of India and the service recipient group company, NSKJ is incorporated under the laws of Japan and therefore are separate persons and would not be considered as “merely establishments of distinct persons”.

In cases where the vessels do not enter any of the location in the taxable territory and the entire services relating to water transport of the vessels are extended in locations outside the taxable territory then, in such cases, the services extended are “Export of Services”

Held that— 

1. The vessel support services provided in relation to foreign vessels sailing to other countries outside India, falls under “Export of Services” as per Section 2(6) of the IGST Act as the “Place of Supply” in such cases is entirely “Outside India”

2. If such vessels are calling at the Port in India, then the Place of Supply in respect of that vessel is in India as per Section 13(6) of the IGST Act 2017 and the services rendered to that vessel is not 'Export of Service'.