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TMI Blog2021 (11) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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? What is the required documentation to avail input tax credit in such cases? 4. Admissibility of the application: The question is about admissibility of input tax credit of tax paid or deemed to have been paid and whether applicant is required to be registered under the act and hence is admissible under Section 97 (2) (d) and (f) of the CGST Act 2017. 5. BRIEF FACTS OF THE CASE: 5.1 The applicant states that they are having Registered Office in Bengaluru, holding GST Certificate vide GSTIN 29ALRPS2253B1ZW. They do not have any other registration or a place of business with the same PAN in Tamil Nadu or any other State. The applicant does not maintain any office/fixed establishment in Tamil Nadu or any other state in India other than Karnataka. 5.2 The applicant states that they are engaged in import and trading of Gum Resin (HSN-38061010) Damar Battu (HSN-13019022) etc. The applicant custom clears the said goods from Chennai Sea Port and wishes to supply the same to various states directly from the Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to issue IGST tax invoice in terms of section 20 of the IGST Act 2017 read with section 31 of the CGST Act 2017. Further, if the applicant supplies the goods to the customers within the state of Karnataka, such transaction shall be treated as intra-State supply in terms of section 8(1) of the IGST Act, 2017 and liable to issue the CGST and SGST tax invoice as per section 31 of the CGST Act 2017 . 5.6 The applicant states that the Maharashtra Authority of Advance Ruling in GST-ARA-114/2018-19B-42 Mumbai dated 24.04.2019 in Aarel Import Export Private Limited also held as follows: The applicant need not take a separate registration and can do the transaction from Head Office/ Registered Place of Business and it appears to mention the GSTIN of the Registered Place in the e-way bill and dispatch place as customs warehouse. However, the aforesaid is subject to issuance of an invoice and payment of applicable IGST or CGST+SGST along with compensation cess, as the case may be as per CGST/ SGST/ UTGST/ IGST Acts respectively 6. Applicant's Interpretation of Law: 6.1 The applicant is of the view that Section 21 of the CGST Act provides that every supplier i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The explanation to the said section also provides that where goods are directly delivered to a customer under a 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. 6.7 The applicant submits that in view of the above explanation u/s 16(2), it has satisfied the said condition and eligible for input tax credit. The bill of entry obtained at the customs port would be sufficient documentation of having paid the IGST on the importation of goods and hence be proof of eligible credit. PERSONAL HEARING / PROCEEDINGS HELD ON 08-09-2021 7. Sri Rishab Singhvi, Chartered Accountant and Duly Authorises Representative of the applicant, appeared for personal hearing proceedings held on 08.09.2021 and reiterated the facts narrated in their application. FINDINGS DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. Section 2(85) place of business includes- (a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or (b) a place where a taxable person maintains his books of account; or (c) a place where a taxable person is engaged in business through an agent, by whatever name called; In the above scenario, the place of business is where the applicant is receiving the goods which are the Chennai Port or the ware house. Hence, he is liable to take registration at the place of import. Q.2. If we do not need separate registration in Tamil Nadu, can we do the transaction using Karnataka GSTIN. If yes, then in case of issuance of e-way bill, is it correct to mention the GSTIN of Karnataka and the place of dispatch as Chennai Sea Port? Need to take separate registration since GST is destination based consumption tax. Q.3. Whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The supply of goods, where the location of the supplier and the place of supply are in: (a) two different States; (b) two different Union territories; or (c) a State and a Union territory, 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 supply of goods where the location of the supplier and the place of supply of goods are in the same State or same Union territory shall be treated as intra- State supply in terms of section 8(1) of the IGST Act, 2017 subject to the provisions of section 10 of the IGST Act, 2017 14. 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 po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both. Explanation - For the purposes of this clause, it shall be deemed that the registered person has received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; 20. 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. 21. In view of the foregoing, we rule as follows RULING 1. The applicant can issue tax invoice with IGST to the customer outside Karnataka as per section 20 of the IGST Act 2017 read with section 31 of the CGST Act 2017 for the interstate transaction as provided under section 7(1) of the IGST Act 2017, when the goods ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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