2018 (6) TMI 702 – AUTHORITY FOR ADVANCE RULING – ANDHRA PRADESH – 2018 (13) G. S. T. L. 445 (A. A. R. – GST) – Supply of goods – inter-state trade – Exemption from GST – outward supplies made to ocean going merchant vessels on foreign run, Indian Naval Ships and Indian Coast Guard Ships – Reverse charge – Whether appellant are exempted from tax under GST on their outward supplies made to ocean going merchant vessels on foreign run, Indian Naval Ships and Indian Coast Guard Ships or not? – If at all they are liable for GST on their outward supplies whether they can collect the GST from the recipient for the goods namely:- (a) Ocean going merchant vessels on foreign run; (b) Indian Naval Ships; and (c) Indian Coast Guard Ships or from their authorized agents.
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Held that:- The goods which are received by the applicant are within the Customs area as defined under Section 2 (11) of the Customs Act, 1962. Accordingly goods cleared / supplied by the applicant is to be treated as supply
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Sri. J.V.M Sarma (Member) and Sri. Amaresh Kumar (Member) Present for the Applicant – Sri. K.V.J.L.N Sastry, (Advocate) Present for the Jurisdictional Officer – Not attended Ruling M/s PARSAN BROTHERS(hereinafter also referred as an applicant), having GSTIN 37AAAEFP0090P1ZV are holders of Special Warehouse License No. 14/2016, issued under Section 58 (A) of The Customs Act, 1962 for storage of duty free ship stores imported without payment of duty for supply to Indian Naval / Coast Guard ships and Ocean going merchant ships. 2. The applicant seeks Advance Ruling under Section 104 of CGST & SGST Acts' 2017for the following questions:- i. Whether they are exempted from tax under GST on their outward supplies made to ocean going merchant vessels on foreign run, Indian Naval Ships and Indian Coast Guard Ships or not ? ii. If at all they are liable for GST on their outward supplies whether they can collect the GST from the recipient for the goods namely:- Ocean going merchant vessel
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d by the DGFT Circular F.No. 21/31/63-CUS.IV, Dated: 17.08.1966, regarding concessions in respect of imported stores for Indian navy. Notification 123/93- Customs, Dated.14.05.1993 regarding concessions in respect of imported stores for Indian Coast Guard. Text of Customs Act' 1962 for section 87, 88 and 69 Supply details for the Ship stores exported to Ocean going merchant ships on foreign run under section 88(a) Supply details for the ship stores exported to Indian naval vessels under section 69 read with 87. Supply details for the ship stores exported to Indian Coast Guard Ships under section 69 read with 87. Import particulars including bill of entry and Re-warehousing certificate for the ship stores warehoused into customs special warehouse. 4. The relevant statutory provisions are reproduced hereunder for our examination of the issue: As per Section 2 (11) of the Customs Act, 1962 "Customs area" means the area of a customs station or a warehouse and includes any are
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rs, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its territory and territorial waters As per Section 2 (47) of the Central Goods and Service Tax Act, 2017 "exempt supply" means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply; As per Section 7 (2) of the Integrated Goods and Service Tax Act, 2017 Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce 5. We have examined the facts of the case as submitted by the applicant. It is observed that the goods which are received by the applicant are within the Cu
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lue of such goods. Such a transaction squarely falls within the definition of "supply" as per section 7 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as, "CGST Act") and shall be taxable in terms of section 9 of the CGST Act read with section 20 of the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as, "IGST Act"). It may be noted that as per sub-section (2) of section 7 of the IGST Act, any supply of imported goods which takes place before they cross the customs frontiers of India, shall be treated as an inter-State supply. Thus, such a transaction of sale/transfer will be subject to IGST under the IGST Act. The value of such supply shall be determined in terms of section 15 of the CGST Act read with section 20 of the IGST Act and the rules made thereunder, without prejudice to the fact that customs duty (which includes BCD and applicable IGST payable under the Customs Tariff Act) will be levied and collect
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