IGST tax invoice to be issued, where imported goods supplied directly from port of import to the customers located in States or UTs other than the State in which applicant is registered
Facts: In this case, the Applicant (importer) is transporting imported goods from port of import to its registered place of business at Karnataka and then supplying same to customer’s place. The Applicant intends to import goods to port nearest to customer’s place and supply directly to customer’s location from said port of import.
Issue: Whether it can issue tax invoice with IGST to customer.
Held: The AAR-Karnataka held that 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 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.