Inland waterways GST exemption denied where port transport route lay in the Arabian Sea, not within inland water definition.

Transportation of goods between Magdalla Port and the General Lighterage Area was not treated as transportation by inland waterways for GST exemption purposes because the route was not within National Waterway 100 and was not shown to be a canal, river, lake, or other navigable inland water. The stretch lay in the Arabian Sea, so it did not meet the definition of inland water applicable to the exemption notification. As a result, the transportation service was held ineligible for exemption under the GST notification.

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Issues: Whether transportation of goods between Magdalla Port and the General Lighterage Area of Magdalla Port qualified as transportation by inland waterways and was therefore exempt from GST.

Analysis: The exemption under the relevant GST notification applies only to transportation of goods by inland waterways. Inland waterways cover national waterways and other waterways on inland water. The relevant stretch was found not to fall within National Waterway 100. It was also not shown to be a canal, river, lake, or other navigable water within the State; instead, the route lay in the Arabian Sea and therefore did not answer the definition of inland water for the purpose of the exemption.

Conclusion: The transportation service did not fall within the definition of inland waterways and was not eligible for exemption.

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