In Re: M/s. Jotun India Pvt. Ltd.
GST
2018 (12) TMI 67 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (19) G. S. T. L. 663 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 26-7-2018
GST-ARA-24/2018-19/B-75
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
PROCEEDINGS
(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, 2017and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Jotun India Private Limited, the applicant, seeking an advance ruling in respect of the following issue:-
a) Whether the supply of goods which are moved from a place located outside taxable territory and are delivered at a place outside taxable territory, would be liable to tax in India under section 7(5)(a) of IGST Act?
b) If answer t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
es of the group has worldwide presence. The Applicant i.e. Jotun India Private Limited, being one of the Group entities, is a supplier, exporter and manufacturer of paints and powder coatings. The Applicant supplies paints and coatings that are specially designed for unique conditions to the various customers.
* Broadly, the paints supplied by the applicant can be categorized in Solvent based paints and Water based paints. One of the major supplies by Applicant are marine paints. Composition of such marine paint being manufactured by Applicant makes it suitable for ships during building stage and even during maintenance. Thus the applicant is involved in supplying the said goods for the vessel at the time of ship building (hereinafter referred to as New Building Supplies) and also as consumables on board of vessel for the purpose of maintenance purpose (hereinafter referred to as Dry Dock Supplies and Sea Dock Supplies)
* Applicant caters to paint and coating requirements for shi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
cation of such ship/ vessel i.e. Jotun Norway ('Ji'). The said order would be meant for supplying desired goods at the ship of customer.
(c) Accordingly goods available at that location, would be moved to the destination i.e. place of vessel/ship
d) Thereafter, basis Jotun Norway would be raising an invoice on JIPL thereby transferring the ownership to JIPL and subsequently JIPL would be raising an invoice on C thereby ultimately transferring the ownership to the Customer.
* The diagrammatic representation of the transactions executed is as below:
Where,
C1. Customer located in taxable territory
J1 – Jotun Norway
B2- Bill to
S2- Ship to
T1- Transaction 1
T2- Transaction 2
* The Applicant is making detailed submission herein below to demonstrate why GST should not be applicable on the transaction under consideration.
STATEMENT CONTAINING APPLICANTS INTERPRETATION OF LAW IN RESPECT OF THE QUESTIONS RAISED
A. Levy of IGST cannot be extended beyond territorial j
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
mmerce.'
…(Emphasis provided
A3. Basis the above emphasis, supply of any goods or services where
* The supplier located in India and
* Place of such supply is outside India
would be considered as inter-state supply. In this regard, it would be very crucial to evaluate meaning of the terms 'Supplier' as well as 'Place of Supply' while concluding the nature of transactions in such situation.
A4. The term 'Supplier' has not been separately defined under IGST Act, 2017. However the definition of the same could be adopted from Section 2(105) of CGST Act, 2017 which reads as under:
“supplier in relation to any goods or services shall mean the person supplying the said goods or services and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied”
For the purpose of determining 'Place of Supply of Goods', section 10 of IGST Act needs to be referred wherein provisions for determining place of supply has been laid down
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
pplicant for the recipient i.e. Customer located in taxable territory are involved, the place of supply in such situation would be determined in terms section Accordingly place of supply in such case would be location of goods at the time at which the movement of goods is terminated for delivery i.e. place outside India.
-For Sea Dock supply of goods
The Applicant is supplying paints to the Customer located in taxable territory. Hence the Applicant would be considered as Supplier'. Further under the said transaction, the goods are supplied on board of a vessel, the place of supply of goods in such situation would be arrived in terms of section 10(1)(e). Accordingly place of supply in such case would be location at which goods are taken on board i.e. place outside India.
A7. Consequently it appears that the above transaction would be considered as 'inter-state supply' in terms of section 7(5)(a) where supplier is located in India and place of supply is outside India.
A8. However, th
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
supply could be construed to take place Outside the territorial jurisdiction of IGST Act. Hence, the levy in the said case, in terms of section 5 of IGST Act read with section 7(5)(a) would mean traveling beyond the jurisdictional powers to levy IGST. In light of this, Applicant contends that levy of IGST on said transaction would be ultra vires the IGST Act.
A10. Further as discussed above, GST is limited to the territorial waters of India and hence all the applicable sections in terms of supply, time of supply, place of supply etc would be limited to goods or services or both as much as they take place in India. For section 7(5)(a) to come into play, the place of supply should be outside India and to determine the place of supply the provisions of Section and section 10(1)(e) seems to be relied on. The Applicant contends that the provisions of GST are travelling beyond its powers by stating that for the transaction under question where the goods are lying outside India i.e. in Norw
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Levy and collection of goods and services tax in course of inter-State trade or commerce.-
(1) Goods and services tax on supplies in the course of inter-State trade or commerce shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council.
Explanation.-For the purposes of this clause, supply of goods, or of services, or both in the course of import into the territory of India shall be deemed to be supply of goods, or of services, or both in the course of inter-State trade or commerce.
(2)……………………..
(3)……………………..
(4)……………………..
(5) Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter-State trade or commerce.
B3. On plain reading of the above
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ate trade or commerce.
(e) In our view, this could be the only reason for providing Explanation to clause (1) of article 269-A. Based on the same, an import is considered to be transaction 'in the course of inter-state trade or commerce' despite of the fact that only one State is involved in such transaction
(f) Thus any transaction, other than mentioned above, involving only one State, could not be termed as 'inter-state and thus for such transaction the constitution has not given power to Government to formulate the principle as contemplated by Article 269-A (5).
(g) The provisions of section 7(5)(a) ultra vires the law, since the law has defined a specific transaction to be an inter-state supply without having adequate powers to do so. Since the Constitution of India has neither defined such transactions to be an inter-state transaction nor given powers to determine so, the provisions ought to be treated as ultra-vires.
C. Cross-border transactions are being covered under 'Inter
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
hat extent and unless it is covered under territorial jurisdiction of IGST Act.
C3. Applicant wishes to draw your kind attention to proviso to section 8 which states that following supply of goods shall not be treated as intra-State supply –
(i) Supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit;
(ii) Goods imported into territory of India till they cross the Customs frontiers of India;
(iii) Supplies made to a tourist referred to in section 15
The above mentioned list has been excluded from ambit of 'intra-State supply' so that administrative and jurisdictional powers would vest with Central Government and not State Government.
C4. In view of above submission, Applicant contends that section 7(5)(a) should be read only to exclude such transactions from the purview of State Government and said section should not be considered as piece of legislation which is empowering Central Government to travel beyond territorial jurisdiction and lev
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e supply. However, this cannot be interpreted to mean that all other supplies falling within the purview of Section 7(5)(a) of IGST Act but not covered under section 16 of IGST Act would be considered as liable to IGST.
D5. Though the term 'Export covers the cases of taking goods out of India, principally, even goods being supplied to customer located in India but delivered at a location which is outside India, should get covered under the purview of term 'Export'.
D6. Interpreting the term 'Export to only cover supplies where goods are taken out of India would be restrictive and would disregard the principle of consumption based tax. 'Export of goods' should be interpreted in a broader way to cover such cross-border transaction where goods are delivered outside India even if not taken from India.
D7. Restricting the concept of export only to cases involving movement from India would mean disregarding the fact that place of supply is outside India. Thus, the Applicant pleads for ext
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
where recipient is located outside India, unlike Place of supply of Goods
E1. Applicant submits that Section 12 and Section 13 of IGST Act delineates place of supply of service in cases where location of both supplier and recipient is in India as well as cases where either of the party is located outside India. However in case of goods, place of supply is to be determined in terms of section 10 or 11 of IGST Act which provides for determining place of Supply separately for domestic supplies and for export/ import transactions.
E2. Your kind attention in this regard, is invited to proviso to section 12(3) of IGST Act, 2017, which provides that in case of supply of service in relation to immovable property or boat or vessel is located outside India but the supplier and recipient are located in India, then the place of supply shall be the location of the recipient.
For your reference we have reproduced relevant portion of section 12(3) of IGST Act, 2017
(3) The place of supply of ser
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
tion of the provider of service as well as that of the recipient of service is in the taxable territory, shall be the location of the recipient of service.'
E5. It can be observed that in case of services, the legislature have always specifically provided for levying tax depending on the location of supplier and recipient. However, in case of goods there is no such provision which states that, even where goods are situated/used/ consumed outside India and the location of the supplier and the recipient is in India, the place of supply shall be outside India.
E6. Accordingly, it can be inferred that for the purpose of levy of GST on services, location of supplier and recipient would be relevant and if both are in India then the same would be liable to GST. However, in case of goods location of supplier and recipient is not relevant and levy would then get linked to location of goods.
Thus, in case of transaction in question, since location of goods is outside India the levy should not
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
The council has decided that IGST on high sea sale (s) transactions of imported goods, whether one or multiple, shall be levied and collected only at the time of importation i.e. when the import declarations are filed before Customs authorities for the customs clearance purposes for the first time. Further, value addition accruing in each such high sea shall form part of the value on which IGST is collected at the time of clearance.'
…(Emphasis provided)
F3. The Circular clearly mentions that the tax is leviable only at the time of importation of goods in India and not when the goods the sold while they are in High Seas. Similarly, when the goods are in Norway i.e. outside India, it can be said that since, the goods are outside India, no GST is applicable on the same as the subject on which tax is being levied are never brought in territory of India.
F4. Similar view was also adopted by the Hon'ble Advance Ruling Authorities of Kerala in case of M/s. Synthite Industries Ltd. = 2
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ot be applicable when the same are sold to its Customers in India but the physical movement of the goods is outside India.
G. No state code available in GST returns to mention the Place of Supply in case of these transactions
G1. A taxpayer is required to report all the transactions carried out by him in his GST returns i.e. GSTR-1 and GSTR-2. Further, the supplier of goods and/ or services has to mention State code of place of supply for each invoice in the GSTR-1 while reporting the outward supply.
G2. Without prejudice to the aforesaid, even if the transaction is made taxable in GST, the place of supply, in accordance with section or 10(1)(e) of IGST Act, 2017, is outside India. There is no mechanism in the GST returns to report the transaction in GSTR-1 mentioning the place of supply to be a place outside India while levying IGST on the same.
G3. Accordingly, the collection mechanism of such IGST is unclear and consequently it is unclear as to whether only Central Government or
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
levy tax on sale or purchase of goods which was carried outside the State or in the course of import or export of goods. Further, vide 101st Constitution (Amendment) Act, 2016, the Article 286 was amended to bring the same in line with provisions of GST law. Also, that Parliament is empowered to formulate the principles to determine is said to be made outside the State or in the course of import or export. However, no such principles have been formulated till date for GST.
H4. The levying section 6 of GST Act provided that GST shall be levied on all inter-State sale of goods. Similar to GST, GST Act specifically defined inter-State supplies, sale in the course of import, sale in the course of export and intra-State sale out which only inter-State sale was made liable to GST.
H5. Section 5 of GST Act, 1956 provided for the principles to determine whether the transaction is a sale or purchase in the course of import or export and the same are reproduced below:
(1) A sale or purchase o
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ing the taxability principles as is. Hence Applicant pleads that such transaction should also not be made liable to tax under GST regime.
I. The said transaction is kept outside the purview of United Kingdom VAT Legislation
I1. Value Added Tax (VAT) was introduced in the UK on April 1, 1973. Although Value Added Tax Act 1994 (VATA) provides the main framework of the tax, the detailed interpretation of the same are found in statutory instruments either in the form of orders made by Treasury or Regulations made by Her Majesty's Revenue and Customs (HNIRC). HMRC has published several Notices and Leaflets affecting law. Though these Notices are not part of the law but they clarify HMRCs interpretation of the law.
I2. The Applicant would like to draw your attention to the VAT provisions laid in United Kingdom as regards out to out supplies. Following is the extract of such germane provisions:
Section 4(1) of VATA: Scope of VAT on taxable supplies
VAT shall be charged on any supply of
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e to the UK and supplied & delivered to a country other than the UK, would be outside the UK.
I4. Applying the above analogy to the present scenario, it can be observed that the place of supply for the transaction under consideration would be outside the UK and accordingly would not fall under the ambit of supply defined under UK VATA.
J. If at all tax is applicable on the transaction. than input tax credit of the same should be available the recipient of supply
J1. One of the major objective of introducing GST in India was to allow the seamless flow of credit to the trade and industry to make the Indian business and Indian products cost effective and competitive in the international market.
J2. It is pertinent to note that provisions of section 16 of CGST Act, 2017 read with section 20 of IGST Act, 2017, input tax credit of all the goods and/ or services may be available to the registered person. Further, section 16 of CGST Act, 2017 lays down various conditions for a person to b
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
he provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input tax credit admissible in respect of the said supply; and
(d) he has furnished the return under section 39:
Provided that where the goods against an invoice are received in lots or instalments, the registered person shall be entitled to take credit upon receipt of the last lot or instalment:
Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed:
Provided also that the re
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e been received from recipient's perspective and the credit should accordingly, be made available to him.
J7. Further, in order to achieve the objective of introduction of GST, the seamless flow of credit should be maintained and the recipient of goods should be made eligible to avail the input tax credit.
J8. Also, if the input tax credit is denied the domestic products may become expensive and that may have implications on 'Make in India' initiative Of Government of India and State Governments as well.
CONCLUSION
1. In view of the above submissions, the transaction of Sale/ supply of goods by the supplier in India should not be made liable to IGST under section 7(5)(a) of GST Act, 2017 since, the intention behind section 7(5)(a) was to specifically provide that export or import Of goods and/ or services should be treated as inter-state transaction and not to tax the transactions under consideration.
2. If at all the transaction is made taxable, the recipient should be eligible t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
or home consumption. Based on the same, it was clarified that integrated tax shall be levied and collected at the time of final clearance of the warehoused goods for home consumption i.e., at the time of filing the ex-bond bill of entry. Accordingly, IGST liability would be levied and collected only once, i.e at the time when the warehoused goods are cleared from the customs bonded warehouse.
A.3. The relevant para of the circular is reproduced below –
6. It is therefore, clarified that integrated tax shall be levied and collected at the time of final clearance of the warehoused goods for home consumption i.e., at the time of filing the ex-bond bill of entry and the value addition accruing at each stage of supply shall form part of the value on which the integrated tax would be payable at the time of clearance of the warehoused goods for home consumption. In other words, the supply of goods before their clearance from the warehouse would not be subject to the levy of integrated tax a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
exure-2 the applicant has given brief background of the transaction. In para-3 it is mentioned that it has been mutually agreed between all entities of this group that any requirement of supply of goods (paints) within country where Jotun group entity is present would be served by that particular entity. Consequently in case where the applicant gets an order from Indian customer to supply paints to sheep located near Norway, entity of Jotun group located at Norway would be serving the said order by supplying paints to that ship & thereafter raising an invoice on the applicant in this regard.
Going by the principle of mutual agreement as said in the above paragraph it is not Clear why Jotun Norway is not raising the invoice.
In Annexure-3 the applicant has quoted relevant provisions of law. He has said that IGST cannot be extended beyond the territorial jurisdiction of the said legislation. He has quoted Section 7(5) of IGST Act, 2017.Emphasis in this provision is given on supplier lo
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
tate sale is not defined in constitution so natural meaning should be taken but in the IGST Act, 2017 the definition of interstate sale is given. The applicant says that Government has no power to formulate what is interstate transaction but it is self-explanatory in article 269-A-5 that Government has powers. The question doesn't arise whether the state Government has the power to levy respective GST on intra state or interstate rather the question is whether the transaction would be liable for IGST. Applicant request to exclude such transaction from the purview of the state government cannot be accepted and is out of the purview of advance ruling.
The applicant has referred zero rated supply and is trying to relate this peculiar transaction to zero rated supply. The applicant request to extend the meaning of export to cases where goods are delivered to customer outside India. Simultaneously the applicant is also agreeing that this transaction cannot treated as zero rated supply.
Th
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
es the recipient will be eligible for ITC.
Thus the answer for the question raised in advance ruling are as follows:
a) IGST will be applicable on the peculiar nature of transaction mentioned in the application.
b) ITC will be available to the recipient and recipient can be entitled to Input Tax Credit if you satisfy the below-mentioned conditions.
1) You must be registered as a taxable person under GST.
2) Goods & services on which you want to claim ITC should have been used only for business purposes.
3) Input Tax Credit can be claimed on taxable & zero-rated supplies (exports).
4) If the constitution of registered taxable person changes due to sale, merger or transfer of business, then unused ITC shall be transferred to the sold, merged or transferred business.
5) To claim ITC, you need supporting documents like tax invoice, debit note, supplementary invoice, etc.
6) You can claim Input Tax Credit if you have actually received some goods & services.
7) To cl
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
bai also appeared and made written submissions.
05. OBSERVATIONS
We have gone through the facts of the case, documents on record and submissions made by the applicant. The issue put before us is in respect of a transaction which is/ would be is on the lines thus –
1. The applicant receives an order for paints from a customer located in taxable territory i.e. India. to supply goods (paint) as a new building , dry dock supply or sea dock supply.
2. The goods have to be delivered to the customer's ship/ vessel located near Norway i.e. a place outside taxable territory.
3. Further, the applicant, as per their group policy, places back to back purchase order on their related party, M/S Jotun, Norway (JN) since JN is located nearest to the location of such ship/vessel of the customer.
4. As per the directions of the applicant the said goods available at that location of JN, would be moved to the destination i.e. place of vessel / ship of the customer outside taxable territory.
5.
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
of the GST law to determine the place of supply for goods when such goods are not located in India.
iii. The provisions of section 7(5)(a) of the IGST Act, 2018, are ultra vires the Constitution of India law (reasons mentioned in their submissions).
We do not feel the need to discuss the above aspects (i) to (iii) since the same is not within the purview and scope of Advance Ruling as per the provisions of the CGST Act, 2018 and the SGST Act, 2018.
In view of the submissions made by the applicant we find that it is clear that the applicant would be purchasing goods from Jotun Norway on the bas1S of purchase orders received from their customer in India and the said goods would be delivered by JN from their Norway place to the ship/vessel of the customer which is also in non-taxable territory i.e. outside India. The order received by the applicant from their customer in India and the order placed to Jotun, Norway are back to back orders. Thus it is seen that the goods are delivered
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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.
Intra-State supply
8. (1) Subject to the provisions of section 10, supply of goods where the location of the supplier and the place of supply of goods are in the same State or same Union territory shall be treated as intra-State supply:
Provided that the following supply of goods shall not be treated as intra-State supply, namely:-
(i) supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit;
(ii) goods imported into the territory of India till they cross the customs frontiers of India; or
(iii) supplies made to a tourist referred to in section 15.
We find that Section 7(2) of the IGST Act reads as under:-
“Section 7(2) 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
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
n
5. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the integrated goods and services tax on all inter-state supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act and at such rates, not exceeding forty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person:
provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962.
(2) …………………….
(3) …………………….
(4) ……………….;
(5) …………………….;
W
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
levy and collection except in accordance with the provisions of Section 12 of the Customs Act, 1962 and Section 3 of the Customs Tariff Act, 1975. Section 12 of the Customs Act, 1962 provides that custom duties which includes integrated tax in respect of imported goods would be levied only at the time of import or export of goods.
Thus in case of goods supplied on an out an out basis as is in the present case, there is no levy till the time of their customs clearance in compliance with Section 12 of the Customs Act and Section 3 of the Customs Tariff Act. In view of this the import goods sold from and to a non-taxable territory, though they are clearly in the nature of inter-state supply would come in the category of “'exempt supply” as no duty is leviable on them except in accordance with proviso to Section 5(1) of the IGST Act.
We find that in the definition of exempt supply as given in Section 2(47) of the CGST Act is as under:-
Section 2(47) of the Central Goods and Services Ta
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
25.05.2018 issued by the Central Board of Indirect Taxes and Customs, GST Policy Wing.
05.In view Of the extensive deliberations as held hereinabove, we pass an order as follows :
ORDER
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
NO.GST-ARA- 24/2018-19/B-75
Mumbai, dt. 26/07/2018
For reasons as discussed in the body of the order, the questions are answered thus –
Question :- a) Whether the supply of goods which are moved from a place located outside taxable territory and are delivered at a place outside taxable territory, would be liable to tax in India under section 7(5)(a) of IGST Act?
Answer :- Answered in the negative.
Question :- b) If answer to (a) is yes, whether the recipient of the goods i.e. person liable to pay consideration, be eligible to avail he input tax credit of the said goods?
Answer :- Not relevant in view of answer to Question No. 1 above.
Case laws, Decisions, Judgements,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =