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TMI Blog2018 (12) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... bill to’ will be mentioned in the name of M/S RSE/RPG whereas ‘ship to’ would be in the name of final customer i.e. M/S X. Input tax credit - Held that:- TMT Steel Bars manufactured by the applicant is similar in quality of what is made by M/s. RSE/RPG, (trademark contract is emphasising on it) and therefore, the value of supply of goods can be ascertained or established in accordance with Section 15 of CGST Act read with second proviso of Rule 28 of CGST Rules, 2017 with eligibility to full Input Tax Credit. Related party transaction - Held that:- The relationship between M/s Goyal and M/s X is not Related party relationship in accordance with sub-section (4) and (5) of section 25 of CGST Act, 2017. Thus, the transactions between M/s. Goyal and the ultimate customer i.e. M/S. X would be covered by the provisions of Section 15 of CGST Act, 2017. Ruling:- The supply from M/s. SSPL to M/s. X on a “Bill to Ship to” mode as per provisions of Section 10(1) (b) of IGST Act, 2017 is permissible. The applicant can issue an e-way bill in which the ‘bill to’ will be mentioned in the name of M/s. RSE/RPG whereas ‘ship to’ would be in the name of final customer i.e. M/s. X. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd., Block A, 24/ 1, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi-110044 (hereinafter referred as M/s. RPG ) for use of their Trademark. The Applicant will brand the TMT Steel bars manufactured by it as Rathi Powertech as per the use of Trademark Agreements entered by it with M/s. RSE and M/s. RPG. It is stated that all are registered persons under the relevant GST laws and will be paying the applicable GST on Royalty, Commission etc. as per provisions of law. c. The business conditions require that the sale of the said manufactured products by the Applicant would be in the following manner- The Applicant would be selling the manufactured goods under the Brand name Rathi Powertech to M/s. RSE. M/s. RSE would be selling the said goods after adding its margin of about ₹ 50 per metric tonne to M/S. Goyal Alloys Pvt. Ltd., E- 231, Phase-II, Bagru Industrial Area, Bagru, Jaipur, Rajasthan-303007 (hereinafter referred to as M/s. Goyal ). M/S. Goyal will be selling the said products to various customers (hereinafter referred to as M/S X ) as per the demand of market. The manufactured goods would be directly dispatched from the Applicant to M/s. X ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person. 2. Whether as per the press note dated 23.04.2018 issued in relation to the transactions of supply u/ s. 10(1)(b) of the IGST Act, 2017 the use of E-way bill in the aforesaid facts in the column of ship to of ultimate customer M/s. X is permissible ? Answer : Yes, E way bill to be generated by M/s. SSPL showing X as shipped to and M/s. RSE as Bill to . 3. Whether in the aforesaid facts the provisions of Section 15 of the CGST Act, 2017 read with Rule 28 of CGST Rules, 2017 and in particular the second proviso to Rule 28 would apply for the value of supply for the transactions between M/s.. SSPL and M/S. RSE and thereafter M/s.. RSE and M/S. Goyal as all are registered persons and the transactions are business to business transactions with availability of full Input Tax Credit? Answer : Yes, Provision as contained in Section 15 of CGST Act, 2017 read with Rule 28 of CGST Rules, 2017 will apply in the stated facts of the case. 4. Whether the transactions between M/s. Goyal and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods, other than supply of goods imported into, or exported from India, shall be as under,- (b) where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person; It is observed from the submissions made by the applicant, that the cycle of supply of goods from the applicant to the final customer, involves four persons. i.e. the applicant, M/s. RSE/RPG, M/s. Goyal and the M/s. X. We are therefore of the opinion that Section 10(1)(b) of IGST Act, 2017 does nowhere limit the transaction to only three parties/ persons. The said section only contemplates about role of third party and declaration of principal place of business . Therefore, the supply from M/s. SSPL to M/S. X on a Bill to Ship to mode as per provisions of Section 10(1) (b) of IGST Act, 2017 is permissible. 2. The Press Note of ministry of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy. (3) The value of the supply shall not include any discount which is given- (a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and (b) after the supply has been effected, if- (i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and (ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply. sub-section (1), the same shall be determined in such manner as may be prescribed. (5) Notwithstanding anything contained in sub-section (1) or sub-section (4), the value of such supplies as may be notified by the Government on the recommendations of the Council shall be determined in such manner as may be prescribed. Explanation .- For the purposes of this Act,- (a) persons shall be deemed to be related persons if- (i) such persons are officers or d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h second proviso of Rule 28 of CGST Rules, 2017 with eligibility to full Input Tax Credit.. 4. We agree with the submissions made by the applicant that relationship between M/s Goyal and M/s X is not Related party relationship in accordance with sub-section (4) and (5) of section 25 of CGST Act, 2017. Thus, the transactions between M/s. Goyal and the ultimate customer i.e. M/S. X would be covered by the provisions of Section 15 of CGST Act, 2017. 6. In view of the foregoing, we rule as under:- RULING 1. The supply from M/s. SSPL to M/s. X on a Bill to Ship to mode as per provisions of Section 10(1) (b) of IGST Act, 2017 is permissible. 2. The applicant can issue an e-way bill in which the bill to will be mentioned in the name of M/s. RSE/RPG whereas ship to would be in the name of final customer i.e. M/s. X. 3. In the aforesaid facts the provisions of Section 15 of the CGST Act, 2017 read with Rule 28 of CGST Rules, 2017 and in particular the second proviso to Rule 28 would apply for the value of supply for the transactions between M/s. SSPL and M/s. RSE with availability of full Input Tax Credit. 4. The transactions between M/s. Goyal and M/s. X (the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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