Case-1-[2019] 106 taxmann.com 292 (AAR – MAHARASHTRA) Aarel Import Export (P.) Ltd-Location of Supplier in case of Import of Goods
With respect to the Question No.1, it is found considering the facts of the case that as per the provisions of Section 7(2) of the IGST Act, 2017, supply of goods imported into India shall be treated as supply of goods in the course of inter-state trade or commerce and as per Section 5(1) of the Act, liable to IGST at the point when duties of Customs are levied on the said goods under Section 12 of the Customs Act, 1962. In respect of goods imported into India, as per provisions of Section 11(a) of the IGST Act, 2017, the place of supply shall be the location of the importer. In the present case since the importer is registered in Mumbai, the place of supply will be Mumbai, Maharashtra. The Sections 22 to 30 of Chapter VI deal with registration under GST. Section 22 speaks of persons who are liable for registration and as per Section 22 (1) — “Every supplier shall be liable to be registered under this Act in the State of Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if ………………………………..”
We find that in the present case as mentioned above, the place of supply is the location of the importer who is situated in the State of Maharashtra and hence the applicant will be clearing the goods by paying IGST using GSTIN issued to them in Mumbai, Maharashtra. Since the applicant has no establishment or place of operation or any godown or GSTIN in the State of Odisha, Paradip Port i.e. at the port of import, we are of the opinion that the place of supply shall be the place from where the applicant makes a taxable supply of goods which, in this case is the Mumbai Head Office, we find that the applicant can clear the goods on the basis of invoices issued by the Mumbai Head Office and therefore they need not take separate registration in the State of Odisha.
Now coming to the second question raised by the applicant, mentioned above, in view of the discussions made in respect of question No. 1, we find that, since, as an importer the place of supply for the applicant in this case will be Mumbai, Maharashtra and the goods also will be cleared on the name of the Mumbai registered address while paying IGST at the time of Customs Clearance, it would follow that they can do the further transaction mentioning the GSTIN of their Mumbai office. As a corollary, they can do the transaction on Mumbai Head Office GSTIN and can mention the GSTIN of Mumbai Head Office in the E-way Bill and dispatch place, as Customs Warehouse, Odisha, Paradip Port.
The applicant has invited our attention to the decision of this Authority issued in Sonkamal Enterprises (P.) Ltd. (supra). We find that the facts of the present case are identical and similar to the facts in the said case already decided by this authority.
Case-2-Kardex India Storage Solution (P.) Ltd [2020] 116 taxmann.com 865 (AAR – KARNATAKA)-Location of Supplier in case of Import of goods
The place of supply in case of import of goods, is the location of the importer in terms of section 11(a) of the IGST Act, 2017 and in the case of applicant the location of the importer is the state of Karnataka where the applicant has obtain the GST registration. Therefore, the applicant though import the goods to the port nearest to the location of the recipient, said imported goods are deemed to have been supplied to the location of the importer i.e., Karnataka and then further supplied to customer. Hence imported goods supplied directly from the port of import to the customer located in other states or Union territories other than state of Karnataka, such transaction shall be treated as a supply of goods in the course of inter-State trade or commerce in terms of section 7(1) of the IGST Act, 2017 and is liable to issue IGST tax invoice in terms of section 20 of the IGST Act, 2017 read with section 31 of the CGST Act, 2017. Further, if the applicant supplies the goods to the customers within the state of Karnataka, such transaction shall be treated as intra-State supply in terms of section 8(1) of the IGST Act, 2017 and liable to issue the CGST and SGST tax invoice as per section 31 of the CGST Act, 2017.
16. Further, with regard to obtain the registration under GST Act, by the applicant in the place where the port of import is located, it is observed that applicant is the registered dealer in the state of Karnataka having GSTIN: 29AADCK5377L1ZW and uses this GSTIN in the bill of entry for import of goods and also for the a payment of IGST on imported goods. Since the applicant already registered under GST Act, no provisions under the CGST or SGST or IGST, Act, 2017 mandates any person to obtain the registration again in the place of port where applicant obtain the custom clearance for further supply of goods. Hence, there is no need for the applicant to obtain the separate registration in the state where port of clearance located, if he does not have an establishment in that State and effecting supplies from that location.
Case-3-Gandhar Oil Refinery (India) Ltd.[2019] 106 taxmann.com 291 (AAR – MAHARASHTRA)-Location of Supplier in case of Person having godown in other states
In the present case as mentioned above the place of supply is the location of the importer who is situated in the State of Maharashtra and hence the applicant will be clearing the goods by paying IGST from their GSTIN issued in Mumbai, Maharashtra. Since the applicant will be storing the goods, after import, in various states for further sales, whether that would be inter-State or intra-State supply would depend upon the place of supply of goods as per Section 10 and Section 11 of the IGST Act, 2017. Hence we are of the opinion that the place from where the applicant makes a taxable Supply of Goods shall be his location, in this case, the Mumbai Head Office/Registered Office at Mumbai and even if the applicant has godowns in different states, we feel that the applicant can clear the goods on the basis of invoices issued by the Mumbai Head Office/Registered Office at Mumbai on payment of IGST in the State of Maharashtra and therefore they need not take separate registration in other states.
Observation-This might be a view which may have a difference of opinion and the other view might be possible wherein having godown in other state can be held to be the location of Supplier
Case-4-[2018] 100 taxmann.com 213 (AAR – MAHARASHTRA) Sonkamal Enterprises (P.) Ltd.-Location of Supplier in case of Import of Goods
First and foremost, since the applicant will be importing the goods into India as per Section 7(2) of the IGST Act, 2017, such supply of goods imported into India shall be treated as supply of goods in the course of Inter State Trade or commerce.
Secondly in respect of goods imported into India, as per Section 11(a) of the IGST Act, 2017, the place of supply shall be the location of the importer and in the present case since the importer is registered in Mumbai, the place of supply shall be Mumbai, Maharashtra,
Chapter VI of the CGST Act, 2017, consisting of Sections 22 to 30 deals with registration under GST Section 22 speaks of persons who are liable for registration and as per Section 22 (1) — “Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where we makes a taxable supply of goods or services or both, if …………………………..”
In the present case as mentioned above the place of supply is the location of the importer who is situated in the State of Maharashtra and hence the applicant will be clearing the goods by paying IGST from their GSTIN issued in Mumbai, Maharashtra. Since the applicant has no establishment or place of operation or any godown or GSTIN in the State of West Bengal i.e. the port of import, therefore, after exbonding of imported goods from the Customs warehouse at Kolkata and for further sales after exbonding, whether that would be interstate or intrastate supply would depend upon the place of supply of goods as per Section 10 and Section 11 of the IGST Act, 2017. Hence we are of the opinion that the place from where the applicant makes a taxable Supply of Goods shall be his location, in this case, the Mumbai Head Office and since the applicant does not have any godown in the state of West Bengal and we feel that the applicant can clear the goods on the basis of invoices issued by the Mumbai Head Office and therefore they need not take separate registration in the State of West Bengal. This would answer their first question mentioned above.
Now we deal with the second question raised by the applicant, which is mentioned above. In view of the discussions made in respect of question no.1, we find that, since as an importer the place of supply for the applicant in this case will be Mumbai, and the goods also will be cleared on the name of the Mumbai registered address while paying IGST at the time of Customs Clearance, it would follow that they can do the further transaction mentioning the GST1N of their Mumbai office. Hence we are of the opinion that they can do the transaction on Mumbai Head Office GSTIN and can mention the GSTIN of Mumbai Head Office in the E-way Bill and dispatch place as Customs Warehouse, Kolkata.
Case-5-Shewratan Company (P.) Ltd. [2019] 110 taxmann.com 408 (AAR-WEST BENGAL)-Supply of stores to foreign going vessels
The Applicant does not claim that its supplies of stores to the foreign going vessels are restricted to warehoused goods. In any case, at the time of supply, both the supplier (the Applicant) and the recipient (the foreign going vessel) are located in India. The supply of stores imported or otherwise, to foreign going vessels cannot, therefore, be construed as export unless it is marked specifically for a location outside India. It is not a zero-rated supply. The Applicant is, therefore, liable to pay tax under the GST Act or the IGST Act, as the case may be.
Case-6-Dolphine Die Cast (P.) Ltd. [2020] 116 taxmann.com 746 (AAR – KARNATAKA)-Supply of Goods within the country at the instruction of the person located outside the country and payment being received in foreign currency
In the case of manufacture of Die by the applicant and invoiced to the recipient, without moving the goods, the applicant has to raise the tax invoice addressed to the foreign buyer. Since it is an intra-State supply, he has to collect the CGST and SGST and discharge the liability. The applicant is not eligible to claim said payment as input tax credit on the invoice raised by him as he is not the recipient. Further if the said steel die is scrapped at applicant’s end as per the instruction of the overseas customer without moving out of the country, while supplying the die scrap to the third party, the applicant has to issue intra/inter-State tax invoice depending upon the nature of the transaction and collect and pay the applicable tax as per the provisions of the GST Acts.
Further ,it is rightly admitted by the applicant that the tax invoice is raised after the manufacture of the Die in the name of the foreign customer in foreign currency for receipt of payment. The date of issue of tax invoice by the applicant is the time of supply of Die to the foreign customer as per section 12 of the CGST Act, 2017. Further, on date of issue of tax invoice the die is with the applicant and it is not moved either by the applicant or by the foreign customer. Hence the place of supply of goods, other than supply of goods imported into, or exported from India, shall be the location of such goods at the time of the delivery to the recipient as per clause (c) of sub-section (1) of section 10 of the IGST Act 2017. Therefore, the place of the applicant.
