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TMI Blog2020 (3) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... gar, Thodukkadu (Post), Mannur Kootu Road, Sriperumbudur District, Thiruvallur, Tamil Nadu-602105 (hereinafter referred to as the 'Applicant' or 'ACTI') is registered under GST vide GSTIN 33AANFP5828N1ZM. The Applicant has sought Advance Ruling on the following questions: 1. Whether GST will be applicable on the transfer of title in moulds from applicant to Indian buyer? 2. If yes, whether the Indian buyer would be eligible to take credit of the GST paid to the applicant for said purchase? The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted copy of Challan evidencing payment of application fees of Rs. 5000/-each under Sub-rule (1) of Rule 104 of CGST Rules 2017 and also SGST Rules 2017. 2.1 The applicant has stated that they are engaged in the supply of automotive components such as door locks and strikers (in short parts') for various sectors of the automotive industry. They supply such parts to a wide range of customers which inter - alia include moulds and tools (in short moulds'). They propose to enter into the below transaction- They agree to supply certain parts, including the moulds to an Indian company (in short 'Indian buyer'), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the Sale of 'Goods Act also recognizes that goods may be retained by the seller after the sale. To determine the nature /character of the supply as an intrastate or interstate supply it is important to determine Supplier and Place of supply Supplier. As the moulds are supplied by the Applicant to the Indian buyer, by way of transfer in title, the Applicant is said to be the 'Supplier'. With regard to place of supply, section 10(1)(c) would get attracted in as much as there is no movement of goods from Thailand by any of the parties to the transaction and thus the place of supply of goods would be Thailand where the goods are notionally delivered to ACTI who in turn notionally delivers the material to Indian buyer. From the above it is seen that the given transaction could get covered under the ambit of Inter- State supply under IGST Act. However, it seems that GST may not take within its fold a transaction wherein the place of supply is outside the territory of India. It thus appears that the transactions mentioned by the applicant may not fall within the purview of SGST/CGST or IGST. Also as per section of IGST Act, it extends to whole of India except state of Jammu & Kashmir an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l utilization certificate which states that the tools are used for Nissan Motors India Private limited/Renault Nissan Automative India Pvt Limited/ Renault India Pvt Limited. They stated that they will submit details of all transactions between them and the recipient in respect of the mould tools and parts involved. They also stated that they will clarify the reason for use of tools for third party. They also stated that they will send all purchase order/MOU agreements for supply of the moulds/rigs and parts manufactured out of these moulds between the applicant and the recipient. They also stated that they will submit the details of disposal of such moulds in the past and any agreements/documentation with the recipient. They further undertook to submit details of how the supply of these moulds were dealt with under Central Excise. They requested time of 3 weeks and requested for another hearing after submission of documents. In the written submissions furnished by the applicant, they had furnished: i. Sample invoice raised by the applicant for supply of tools and moulds to Nissan Motor India Pvt Ltd (NMIPL) ii. Declaration iii. Tool ownership certificate issued by the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, there are no changes in the modus of transaction as evident from the documents viz., Purchase Order, Invoice, tool ownership certificate, etc. 4. The applicant is under the administrative control of State. The said jurisdictional authority was addressed to report if there are any pending proceedings in the applicant's case on the issues raised by the applicant in the ARA application and for comments on the issues raised. The said authority did not furnish any report and also has not furnished any comments. Hence, it is construed that there is no proceedings pending in the case of the applicant on the questions seeking Advance Ruling before us. 5.1 We have carefully considered the various submissions made by the applicant. We find that the applicant is engaged in the supply of automotive components. They have stated that they agree to supply certain parts, including moulds to Indian Company located in the State of TamilNadu, for which they place an order for manufacturing the said parts and moulds on a Thailand Company. The parts manufactured are physically imported, while the moulds developed are retained in Thailand and are not physically imported into India, but the owner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e category specified under Section 97(2) of the Act and therefore not within the ambit of this authority. This position was explained during the personal hearing also. The First Question relating to whether GST is applicable on a transaction is within the ambit of this authority and is taken up for consideration. 6.1 In the case at hand, the applicant is undertaking two transactions- T1: Transfer of title in moulds from the foreign supplier to the Applicant T2: Transfer of title in moulds from the applicant to the Indian buyer. The question raised by the applicant is with respect to transaction at T2 above. It is stated that the moulds manufactured by the foreign supplier is not physically imported and only the title in the moulds are transferred from the foreign supplier to the applicant and thereupon by the applicant to the vendor located in India. The applicant on his interpretation of law has stated that on application of Section 10 (1)(c ) of IGST Act 2017, the place of supply is Thailand and the supplier is in India, therefore the supply could get covered under the ambit of Inter-State Supply in terms of IGST Act, but IGST levy can be imposed only to supplies within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen the factual position, the relevant statutory provisions are examined as under. Supply is defined under Section 7 of the CGST Act 2017 and the same is reproduced below for reference: 7. (1) For the purposes of this Act, the expression "supply" includes- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration whether or not in the course or furtherance of business; and (c) the activities specified in Schedule I, made or agreed to be made without a consideration; (1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.; Schedule II determines the list of activities to be considered as supply of goods/Services and entry SI.No. 1 is as follows: 1. Transfer (a) any transfer of the title in goods is a supply of goods; From the above, it is evident that 'transfer of the title in goods' is suppl ..... 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