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2022 (4) TMI 815 - AAR - GSTRequirement to obtain registration in the state in which goods are imported - said goods are directly sold from the port of importation to the customers located across different states in India - Input Tax Credit of IGST paid - HELD THAT - The transactions made by the applicant after clearing them from customs in their own account are subsequent sales and not sales in course of import, where the customs clearance will be made by the purchaser in which case the transactions will be covered under Entry 8 of Schedule III to the CGST Act, 2017 prescribed above. Therefore this subsequent sale when made to a customer within the State of Telangana will be an intra State sale liable to CGST SGST and when such sale is made to a customer in other States of a country it will be a Inter-State sale liable to IGST. Being a taxable sale the person making such taxable sales is liable to take registration under CGST Act, 2017. This registration is sufficient to cover the transactions or supplies in nature described by the applicant - Under Section 16 of the CGST Act, 2017 read with Section 20 of IGST Act, the IGST paid on imports is eligible to be availed as Input Tax Credit (ITC) both on intra-state and inter-state sales.
Issues:
1. Registration requirement for goods sold directly from the port of importation. 2. Eligibility to avail Input Tax Credit of IGST paid on imported goods sold directly from the port of importation. Issue 1: Registration requirement for goods sold directly from the port of importation The applicant sought clarification on whether registration is necessary in the state where goods are imported if they are directly sold from the port of importation to customers across different states in India. The ruling clarified that registration is required under Section 22 of the CGST Act if the supplier's taxable supplies exceed ?20 lakhs in a financial year. The registration should be obtained in the state from which the taxable supply is made. The ruling further explained that the applicant, in this case, was making inter-state supplies from a customs warehouse without bringing the goods to their registered premises. These subsequent sales, not sales in the course of import, are subject to CGST, SGST for intra-state sales, and IGST for inter-state sales. The applicant's existing registration with GSTIN: 36AAACE5313K1ZS was deemed sufficient to cover these transactions. Issue 2: Eligibility to avail Input Tax Credit of IGST paid on imported goods The applicant also inquired about the entitlement to avail Input Tax Credit (ITC) of IGST paid on imported goods sold directly from the port of importation to customers across different states in India without bringing the goods into Telangana. The ruling cited Section 16 of the CGST Act, 2017, read with Section 20 of the IGST Act, stating that IGST paid on imports is eligible to be availed as ITC on both intra-state and inter-state sales. Therefore, the ruling confirmed that the applicant is indeed entitled to avail Input Tax Credit of IGST paid on imported goods sold directly from the port of importation to customers located across different states in India, even without bringing the goods into Telangana. In conclusion, the Authority for Advance Ruling, Telangana, addressed the applicant's queries regarding the registration requirement for goods sold directly from the port of importation and the eligibility to avail Input Tax Credit of IGST paid on imported goods. The ruling clarified the legal provisions and confirmed that the applicant's existing registration sufficed for the transactions in question and that they were entitled to avail Input Tax Credit of IGST paid on imported goods.
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