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Tax Publishers 2019 TaxPub(GST) 0959 (AAR-Maha)



Maansmarine Cargo International LLP, In re


23 August, 2019


(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)

The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 (hereinafter referred to as "the CGST Act and MGST Act") by M/s. MAANSMARINE CARGO INTERNATIONAL LLP, the applicant, seeking an advance ruling in respect of the following questions.

1. Whether we need to apply for GST registration as the services provided are export of services?

2. Whether can we do supply of such services under LUT?

3. Whether GST is applicable on the reimbursement of expenses such as salaries, rent, office expenses, travelling cost etc.?

4. Whether GST will be applicable on the management fees charged by us to the Company for managing the job outsourced to us?

At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act.

2. Facts and Contention--As per the Applicant

The submissions, as reproduced verbatim, could be seen thus--

"We are mainly in to Management consultancy services to ship owners, logistics services through water etc in Mumbai. Previously we had applied for GST registration, however, as our turnover was not exceeding the exemption limit we have applied for cancellation of GST registration with effect from 28-5-2018.

Now, we have been offered an outsourcing work of managing the shipping operations of Hong Kong based shipping company MSS Marine Ltd, which is involved in worldwide shipping consultancy and logistics arrangement of cargoes. Primarily their ships trade between several ports in middle east countries of Saudi Arabia, UAE & other Asian countries including India, Thailand, China, Korea, Taiwan. Singapore. A few of their vessels also trade into Europe.

--MSS Marine will outsource the following job to us :--

--Handling all communications between vessel Owners, shippers, consignees, various port agents. Passing information to all parties with regards to vessel schedule and her operations.

--Drafting contracts of shipments and sending the same to ship owners and shippers or charterers as the case maybe.

--Preparing reports on time used per voyage and presenting to shippers reports on additional time used per shipment.

--Preparing invoices on behalf of clients as per contract and presenting them to charterers as per approval from principals.