In accordance with the West Bengal Authority of Advance Ruling (AAR), there is no GST exemption on loading and unloading services for imported, unprocessed “toor,” “whole pulses,” and “black matpe” they are subject to GST. According to the bench of Sarthak Saxena and Joyjit Banik, any services provided by the applicant for loading and unloading after the goods left the primary market then GST exemption is not applicable.
M/s Sona Ship Management Pvt. Ltd. (“the Applicant”) performs loading and unloading operations at the Kolkata Dock Complex (“KDC”) and specializes in moving break bulk and project cargo, including food grain, fertilizer, coal, iron ore, and other bulky materials. For the purpose of transporting the imported pulses,the Applicant has taken the services of Calcutta Dock Labor Board (“CDLB”) for bringing the imported pulses as the said pulses were imported by using smaller ships to Kolkata Dock.
But the Applicant had filed the application seeking an advance ruling whether services of loading and unloading of unprocessed Toor and whole pulse and black matpe is eligible for exemption under serial no.54(e) of the Service Exemption Notification.
Noted that, as per serial no.54 of the Service Exemption Notification services relating to the cultivation of plant, inter alia for agriculture produce are exempt and classified under SAC 9986
Because pulses are typically divided by millers rather than by farmers or at the farm level, the AAR has determined that split pulses are not considered agricultural produce. Therefore, it would seem that in order to make agricultural products marketable for the primary market, the procedures and services that are used up until the items are in the farmer’s hands should be taken into account.
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.
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