Applicablity of Rental Service provided to a Transit good which was originated at Japan, store for temporary period at Indian port and again re exported to Dubai

[Guest]

Dear Sir/Madam,

In regard to subject kindly guide whether GST is applicable or not.

Fact of transaction We ,are a bonded warehouse located at Kandla Port.

One of our client a foreign company, Dubai based imported Chemical from Japan and store at our bonded warehouse at Kandla port , we enter into rental agreement for storing his chemical at Kandla.

The said chemical was store for period of one month. The same chemical parcel was re-exported to Dubai by the foreign cl ient without entering home market

Now we are billing to foreign client for rental service for the storage of parcel. Now question arises whether such type of service provided at Indian port bonded warehouse GST is to be charged or not or service is exempted . If applicable what type of GST ( igst /c+s gst)

Kindly guide

AI Summary

GST Applies to Warehouse Rental Services in India Even if Goods Are Re-exported; CGST and SGST Applicable A discussion on a forum addresses whether Goods and Services Tax (GST) applies to rental services provided by an Indian bonded warehouse for storing chemicals imported from Japan and re-exported to Dubai. The primary concern is whether GST is applicable since the goods did not enter the Indian market. Participants, including experts, clarify that GST is applicable as the service is provided within India, specifically under the category of 'storage and warehousing' services. The consensus is that Central GST (CGST) and State GST (SGST) apply, rather than Integrated GST (IGST), due to the location of the immovable property in India.