2018 (11) TMI 486 – AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH – 2018 (18) G. S. T. L. 844 (A. A. R. – GST) – Exemption from GST – outward supplies made to ocean going merchant vessels on foreign run, Indian Naval Ships and Indian Coast Guard Ships – zero rated supplies or not – Collection of GST from Ocean going merchant vessels on foreign run/ Indian Naval Ships/ Indian Coast Guard Ships or from their authorized agents.
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Held that:- As per section 88(A) of Customs Act, 1962, the goods supplied to merchant ships on foreign run will be treated as export. As per section 16 of IGST Act’2017, the exports will be treated as ‘zero’ rated supplies.
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Ruling:- The outward supplies made by the applicant to a) ocean going merchant ships which are in foreign run, b) Indian Navy ships, c) Indian Coast guard ships, will be treated as ‘exports’. – AAR/AP/10(GST)/2018 in Application No. AAR/15(GST)/2018 Dated:- 20-8-2018 – SRI. J.V.M SARMA AND SRI. AMARESH KUMAR, MEMBER Present for the
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GST on their outward supplies whether they can collect the GST from the recipient for the goods namely: Ocean going merchant vessels on foreign run. Indian Naval Ships Indian Coast Guard Ships or from their authorized agents 2.2 After following due process of law this advance ruling authority vide Ruling No. AAR/AP/01(GST)/2017 dated 25.01.2018 = 2018 (6) TMI 623 – AUTHORITY FOR ADVANCE RULING – ANDHRA PRADESH had given the following ruling on the applicant s question: (i) The applicant are not 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. (ii) The applicant can collect the applicable GST from their customers, in case it is not exports. However, in case of exports the option lies with the applicant based on manner of exports i.e. whether they intend to export under bond or on payment of tax. 2.3 Aggrieved by the above order, the applicant filed an appeal before Appellate Author
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rehoused goods between the importer and other person which is squarely applies the present transaction. It was submitted that as per his own assessment the transactions dealt by him fall under exports only and requested the Advance Ruling Authority to decide in the light of facts and legal position whether their transaction falls under exports or not. FACT S OF THE CASE : 4.1 The applicant is importing cosmetics, toiletries food products like confectioneries and cigarettes etc,. The Foreign manufacturers will maintain stores in SEZ units and the same will be supplied to bonded ware house or duty free ship store supplier. For example the brands like Marlboro, L&M, Bond street they are not having any manufacturing units in India. All these goods are manufactured outside India arid the manufacturer will maintain a hub at SEZ unit from there they will supply to the applicant. Further the applicant also imports the same from foreign also. The goods so imported will be kept in special wa
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rocedures of customs authorities 4.2 The relevant legal provisions are as under. Definition of Export of goods : As per Section 2(5) of IGST Act 2017, export of goods with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India; Definition of Customs frontier of India : As per Section 2(4) customs frontiers of India means the limits of a customs area as defined in section 2 of the Customs Act, 1962. Section: 87 of Indian Customs Act, 1962 : Imported stores may be consumed on board a foreign-going vessel or aircraft. Any imported stores on board a vessel or aircraft (other than stores to which section 90 applies) may, without payment of duty, be consumed thereon as stores during the period such vessel or aircraft is a foreign-going vessel or aircraft. Section 88(a) of Indian Customs Act, 1962: for the words exported to any place outside India or the word exported , wherever they occur, the words taken on board any foreign-going vessel
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