2021 (11) TMI 390 - AAR - GST

Requirement for registration - inter-state sales or not - Tax Invoice from Bengaluru office (Registered Place of Business) for imports received at Chennai Sea Port and directly sold to a customer either in Andhra Pradesh, Tamil Nadu, etc., could be raised, or a separate registration is to be obtained at the place of Importation, i.e. Tamil Nadu - place of supply of goods - If we do not need separate registration in Tamil Nadu, can we do the transaction using Karnataka GSTIN? - availability of Input tax credit to the registration in Karnataka u/ s 16(2) even though the goods have not been physically received in the premises of the applicant but directly transported to the customer. HELD THAT - As per the provisions of place of supply of Goods under section 11 (a) of IGST Act 2017, the place of supply of goods imported into India shall be the location of the importer . In case of the applicant, location of the importer is the state of Karnataka where the applicant has obtained the GST registration. Therefore, the applicant though imports the goods to the port of Chennai, 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 COST Act 2017. Section 22 of the CGST Act 2017 provides that every supplier is required to take registration in the state from where such supplier makes taxable supply of goods or services or both. Section 24 (i) of the CGST Act 2017 states that, persons making any inter-State taxable supply shall be registered under CGST Act 2017 - Since the applicant has stated that he does not have any place of business in Tamil Nadu and does not maintain any office / fixed establishment in Tamil Nadu or any other state in India other than Karnataka, the applicant is not required to take any separate registration at the place of importation. Section 20 of the IGST Act, 2017 read with section 16 of the CGST Act, 2017 provides that IGST paid on import of goods can be utilized as the credit of the input tax if such imported goods are used in the course of furtherance of his business - the explanation to the said section provides that where the goods are directly delivered to a customer under bill to ship to model, then it would be deemed to have received the goods even though the goods are shipped to the end customer location directly.

Summary

Issues Involved:
1. Whether a tax invoice can be issued from the Bengaluru office for imports received at Chennai Sea Port and directly sold to customers in other states, or if separate registration is required at the place of importation.
2. Whether transactions can be conducted using Karnataka GSTIN, and the correctness of mentioning Karnataka GSTIN and Chennai Sea Port as the place of dispatch in the e-way bill.
3. Eligibility for input tax credit under Section 16(2) of the CGST Act when goods are directly transported to customers without being physically received at the applicant's premises.

Issue-Wise Detailed Analysis:

1. Issuance of Tax Invoice and Registration Requirement:
The applicant sought clarification on whether they could raise a tax invoice from their registered office in Bengaluru for goods imported at Chennai Sea Port and directly sold to customers in other states, or if they needed separate registration in Tamil Nadu. The ruling referred to Section 22(1) of the CGST/KGST Act, which mandates registration in the state from where taxable supplies are made. However, since the applicant does not have a place of business or fixed establishment in Tamil Nadu, the ruling concluded that separate registration at the place of importation is not required. The applicant can issue a tax invoice with IGST for interstate transactions as per Section 20 of the IGST Act 2017, read with Section 31 of the CGST Act 2017, when goods are directly dispatched from the port of import.

2. Conducting Transactions Using Karnataka GSTIN and E-Way Bill:
The applicant queried if they could use their Karnataka GSTIN for transactions and include Karnataka GSTIN and Chennai Sea Port as the place of dispatch in the e-way bill. The ruling affirmed that the applicant could conduct transactions using Karnataka GSTIN and correctly mention the GSTIN of Karnataka and the place of dispatch as Chennai Sea Port in the e-way bill. This is in line with the provisions that the place of supply of imported goods is the location of the importer, which, in this case, is Karnataka.

3. Eligibility for Input Tax Credit:
The applicant sought clarity on the availability of input tax credit under Section 16(2) of the CGST Act when goods are directly transported to customers without being physically received at their premises. The ruling referenced Section 16(2) and its explanation, which deems goods to be received by the registered person if they are delivered directly to a customer on the direction of the registered person. Thus, the applicant is eligible for input tax credit even if the goods are shipped directly to customers, provided they possess the necessary tax invoice or bill of entry documentation.

Ruling:
1. The applicant can issue a tax invoice with IGST for interstate transactions from their registered place of business in Karnataka without needing separate registration at the place of importation.
2. The applicant can use Karnataka GSTIN for transactions and correctly mention Karnataka GSTIN and Chennai Sea Port as the place of dispatch in the e-way bill.