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2021 (8) TMI 351 - AAR - GSTTerritorial Jurisdiction - Levy of GST - Both the transactions of Sale and purchase are done outside India - Guitar Head Books purchased from Amazon Inc.-USA (located outside India) in a context where the Guitar Head Books so purchased are not brought into India - HELD THAT - The Customer in USA, UK and Canada places an order through Applicant's website by making payment in Foreign Currency. Applicant shares the order detail to the warehouse service provider, who in turn ships the books to customer. Applicant pays warehouse charges Shipping charges to the respective service provider. Applicant collects with the price of book along with shipping charges. Schedule III relevant to Section 7 of CGST Act 2017 specifies certain activities or transactions that shall be treated neither as a supply of goods nor a supply of services. Para 7 of the said schedule stipulates that Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India as neither supply of goods nor supply of services. In the instant case the applicant is involved in supply of books, purchased from Amazon who owned the books, from a place outside India, a non-taxable territory, to another place outside India, a non-taxable territory, without the said goods entering into India. Thus the impugned supply of books by the applicant is neither supply of goods nor supply of services, in terms of schedule II to Section 7 of the CGST Act 2017.
Issues Involved:
1. Whether GST is payable on Guitar Head Books purchased from Amazon Inc.-USA and sold to customers outside India, when the said books are not brought into India. Issue-wise Detailed Analysis: Admissibility of the Application: The applicant filed the application under Section 97(2)(e) and 97(2)(g) of the CGST Act 2017, making it admissible for consideration. Applicant's Interpretation of Law: The applicant argued that GST is not payable on Guitar Head Books purchased from Amazon Inc.-USA and sold to customers outside India without bringing the books into India. They referenced several legal provisions and previous rulings: - Section 2(10) of the IGST Act, 2017: Defines "import of goods" as bringing goods into India from a place outside India. - Section 7(2) of the IGST Act, 2017: States that supply of goods imported into India shall be treated as inter-state trade or commerce until they cross the customs frontiers. - Section 5(1) of the IGST Act, 2017: Levies IGST on inter-state supplies of goods or services. - Customs Tariff Act, 1975: Amended to include integrated tax on imported goods. - Customs Act, 1962: Specifies the determination of duty rates and tariff valuation for imported goods. The applicant also cited CBEC Circular No. 33/2017-Customs and previous Advance Ruling Authorities' decisions, which clarified that GST is not applicable on goods not brought into India. Findings & Discussion: The authority examined the submissions and the legal framework. It noted that the applicant's business model involves purchasing books from Amazon Inc.-USA, storing them in a warehouse outside India, and selling them to customers in the USA, UK, and Canada. The books never enter India. Legal Provisions and Rulings: - Schedule III to Section 7 of the CGST Act 2017: Specifies that supply of goods from a place in a non-taxable territory to another place in a non-taxable territory without entering India is neither a supply of goods nor a supply of services. - The authority referenced the applicant's reliance on the Customs Act 1962 and relevant circulars, confirming that the transaction does not amount to import of goods and thus does not attract GST. Conclusion: The authority concluded that the Guitar Head Books purchased from Amazon Inc.-USA and supplied to customers outside India, without bringing the books into India, do not attract GST as per Schedule III to Section 7 of the CGST Act 2017. Ruling: The Guitar Head Books purchased from Amazon Inc.-USA and supplied to customers outside India, without bringing into India, do not attract any GST, in terms of Schedule III to Section 7 of the CGST Act 2017.
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