AAR Telangana

The Hon’ble Advance Ruling Authority, Telangana vide its order: – TSAAR Order No.22/2022 dated 08.04.2022 in the matter of M/s. Euroflex Transmissions (India) Private Limited in A.R. Com/02/2021, held that the Applicant is not required to take registration in those states from where the imported goods are directly sold from the port itself.  Further, the Applicant is entitled to avail the ITC of the IGST paid for the import of goods, if the goods are sold directly from the port of importation.

Facts:

  • The Applicant wishes to supply imported goods directly from the port to the customers located in different States in India without bringing such goods to its registered premise in State of Telangana. The Applicant filed the present application raising queries: – 
  1. Whether the Applicant is required to obtain registration in the state in which goods are imported if the said goods are directly sold from the port of importation to the customers located across different states in India?
  2. Whether the Applicant is entitled to avail Input Tax Credit of IGST paid on import of goods in the above transaction?

The averments made in the application were reiterated on the behalf of the Applicant and request was made for early disposal of the application on merits. 

Held:

  • The Hon’ble Advance Ruling authority after considering the averments made observed that if the supplier makes the taxable supply and its turnover is above 20 lakhs, such supplier is liable to take registration under Section 22, in the State from where the taxable supply is made.
  • That after perusal of entry 8 of Schedule III and the material papers submitted, it was observed that the Applicant in the present case, is not seeking clarification on the supplies which are in the nature described in entry 8 of Schedule III.
  • The clarification has been sought on the inter-state supply made after clearing the goods by paying Customs duty and IGST, and without bringing such goods to the business premise of the Applicant.
  • The transaction in the present case, is made by the Applicant after clearing the goods from Customs in their own account. Thus, the transaction will not be covered under entry 8 Schedule III, and the supplies made by the Applicant would be considered as subsequent sales and not sales in course of import.
  • Further, subsequent sales made are liable to CGST & SGST when the sales are made within the State considering the same as intra-state supply, however if the same is made in other States, IGST is payable on it considering the same as inter-state supply.
  • That the Hon’ble Advance ruling authority found that in present matter the Applicant is already registered with GSTIN: 36AAACE5313K1ZS. Thus, not required to take separate registrations in other states for the impugned transaction.
  • Thereafter, it was clarified that as per Section 16 of CGST read with Section 20 of IGST, the applicant is entitled to avail Input Tax Credit for IGST paid in the above transaction.

The Hon’ble Advance Ruling Authority with the above discussions disposed of the application filed by the Applicant.

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