2019 (6) TMI 1011 - AAR - GST

Requirement of separate registration or not - invoice raised from Mumbai Office for imports received at Paradip Port, Odisha - Place of supply of goods - whether transaction can be done on Mumbai Office GSTIN - mentioning of GSTIN and dispatch place in the E-way biills - HELD 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 registered in Mumbai, the place of supply will be Mumbai, Maharashtra. In the present case, 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, 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, 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. If we do not need separate registration in Odisha, can we do the transaction on Mumbai Office GSTIN, then in case of issuance Of e-way bill is it correct to Mention the GSTIN of Mumbai and Dispatch place as Paradip Port? - HELD 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.

Summary

Issues Involved:
1. Whether the procedure to raise the invoice from Mumbai Office for imports received at Paradip Port, Odisha, without separate GST Registration in Odisha, and charge IGST from Mumbai to customers is correct.
2. If separate registration in Odisha is not required, whether it is correct to mention the GSTIN of Mumbai and the dispatch place as Paradip Port in the e-way bill.

Detailed Analysis:

Issue 1: Invoice Procedure and GST Registration Requirement

The applicant, M/s. Aarel Import Export Private Limited, operates from Mumbai, Maharashtra, and is registered under the GST Act in Maharashtra. They import goods at Paradip Port, Odisha, and store them in a rented customs warehouse without having any separate establishment in Odisha. The applicant seeks to clear the goods from the warehouse using their Maharashtra GSTIN and sell directly to customers in Odisha, charging IGST from Mumbai.

Legal Provisions and Interpretation:
- As per Section 7(2) of the IGST Act, 2017, the supply of goods imported into India is treated as inter-state trade or commerce.
- Section 11(a) of the IGST Act, 2017, specifies that the place of supply for imported goods is the location of the importer, which in this case is Mumbai, Maharashtra.
- Section 22(1) of the CGST Act, 2017, mandates registration in the state from where taxable supplies are made if aggregate turnover exceeds twenty lakh rupees.

Authority's Observations:
The place of supply is identified as the location of the importer, i.e., Mumbai. Since the applicant does not have any establishment in Odisha, the taxable supply is deemed to be made from Mumbai. Consequently, the applicant can clear goods using the Mumbai GSTIN without requiring separate registration in Odisha. This conclusion aligns with the precedent set in the case of Sonkamal Enterprises Private Limited, where similar facts led to a ruling that no separate registration was needed in the state where the port of import is located.

Conclusion:
The procedure to raise invoices from the Mumbai office for imports received at Paradip Port, Odisha, and charge IGST from Mumbai to customers is correct. Separate GST registration in Odisha is not required.

Issue 2: E-way Bill and GSTIN Mention

The applicant inquires whether, without separate registration in Odisha, they can conduct transactions using the Mumbai GSTIN and if it is correct to mention the GSTIN of Mumbai and the dispatch place as Paradip Port in the e-way bill.

Legal Provisions and Interpretation:
- The place of supply for imported goods is the location of the importer, which is Mumbai.
- The goods are cleared in the name of the Mumbai registered address, and IGST is paid at the time of customs clearance.

Authority's Observations:
Since the place of supply is Mumbai and the goods are cleared using the Mumbai GSTIN, the applicant can conduct further transactions using the Mumbai GSTIN. It is permissible to mention the GSTIN of the Mumbai office in the e-way bill and the dispatch place as the customs warehouse at Paradip Port, Odisha.

Conclusion:
The applicant can conduct transactions using the Mumbai GSTIN and correctly mention the GSTIN of Mumbai and the dispatch place as Paradip Port in the e-way bill.

Order:
1. The procedure to raise invoices from the Mumbai office for imports received at Paradip Port, Odisha, and charge IGST from Mumbai to customers is correct. No separate GST registration in Odisha is required.
2. It is correct to mention the GSTIN of Mumbai and the dispatch place as Paradip Port in the e-way bill.