TMI Blog2018 (12) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... The supply of goods imported into the territory of India till they cross the customs frontier shall be treated as supply of goods in the course of inter-state trade or commerce - From the transactions placed, there is no doubt that the goods of the applicant would be imported goods if they are brought from outside the country into India and it is clear that when the said goods are delivered/supplied from a place outside India to a place outside India, these goods have not crossed the customs frontiers of India - Thus clearly the transaction in these goods are in the nature of inter-state supply as per Section 7(2) of the IGST Act. The integrated tax on goods imported into India is to be levied and collected in accordance with Section 3 of the Customs Tariff Act, 1975 and Section 12 of the Customs Act, 1962 and the same is to be levied and collected at the time of import into India. The goods are considered to be imported into India only after they clear the customs frontier after compliance Of applicable procedures and payment of duty as applicable - as per Section 7(2) of the IGST Act and proviso to Section 5(1) of the IGST Act it is very clear that in respect of import good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d supplies for the purpose of the GST? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the GST Act . 02 FATSS AND CONTENTION - AS PER TUE APPLICANT The submissions, as reproduced verbatim, could be seen thus- Statement of relevant facts having a bearing on the questions raised 1. Brief Facts 1.1. Applicant is a private limited company registered under the provisions of the Companies Act, 1956. The Applicant is, inter alia, engaged in the business of the trading in marine fuel additive chemicals. 1.2. The Applicant is an authorized dealer of M/s. Innospec Limited a company registered in the England and Wales. The Applicant sells the marine fuel additive chemicals of Innospec Limited to shipping line ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r facts as the case may be, in respect of the aforesaid question(s) 1. The Applicant is not liable to charge on the out and out transaction. 1.1. The Applicant submits that the above supply effected by the Applicant is not liable for GST in India on following grounds: a) The said supply does not take place in India b) The said supply is an out out transaction c) The place of supply for the said transaction cannot be determined under Section 10 of Section 11 of the IGST Act, 2017 d) Section 7 (5) of the IGST Act, 2017 is also not applicable in the facts of the present case e) The goods are not consumed in any state in India. 1.2. The above grounds are elaborated in detail herein below: 2. The supply in the present transaction has taken place outside India. The India GST provisions will not apply to such transaction 2.1 The Applicant submits that as per Section 1 of the CGST Act, 2017 and Section 1 of the IGST Act, 2017, the GST Act applies only whole of India except the State of Jammu and Kashmir. 2.2. The term India has been defined under Section 2(56) of the CGST Act, 2017 as under: (56) India means the territory o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ognate expressions, means bringing goods into India from a place outside India; 3.5. Firstly, the above definitions are with reference to the movement of goods and not the location of the supplier or recipient. 3.6. In the present case, admittedly there is no movement of goods into India or from India. The goods are in Singapore Port only. Thus, the above transaction can neither be considered as import or export of the goods. 3.7. Secondly, the Place of supply of the of an import or export of goods is determined as per Section 11 of the IGST Act, extracted as under. 11. The place of supply of goods, (a) imported into India shall be the location of the importer; (b) exported from India shall be the location outside India. 3.8. It is submitted, the place of supply as per Section 11 can be determined only in case the transaction has resulted into import of goods or export of goods from India. Where there is no import of goods or export of goods, the above provision of Section 11 for determining the place of supply will not apply. 3.9. Hence, the applicant submits that the above transaction in question is an out and out transaction not liable to GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intra-State supply and not covered elsewhere in this section, shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce. 5.2. The Applicant submits that above Section 7(5)(a) is also not applicable in the facts of the present case. For Section to apply there should be two variables available: a) supplier is located in India and b) Place of supply is outside India. 5.3. The applicant submits that in the present case both the above variable are absent. Firstly, the location of the supplier of goods is not defined under the GST Act. Only location of supplier of service is defined. Thus, as far as the goods is concerned, there can be no location of the supplier. In any case, even if it is held that location of the supplier has to be interpreted contextually, then the same has to be located qua a particular supply made under the GST Act. Since, in the present case, the sale is taking place outside India, it is not a supply under the GST Act and hence location of the supplier qua that sale cannot be determined under the Act. 5.4. Secondly, as explained above, the place of the supply for the transaction in question c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmissions made by the applicant. The issue put before us is in respect of a transaction which is/would be on the lines as below: - 1. The applicant is engaged in the business of the trading in marine fuel additive chemicals. 2. The Applicant is an authorized dealer of M/s. Innospec Limited a company registered in the England and Wales. The Applicant sells the marine fuel additive chemicals of Innospec Limited to shipping lines in India and outside India. 3. In the present case, one M/s. AZA Shipping Pvt. Ltd., an Indian Company, placed a purchase order no. 721 on the Applicant dated 02.02.2018, requisition no 2000188 dated 08.01.2018, for 75 Ltrs of Innospec Fuel Specialities Octamar L15 Product. The said requirement has been specifically placed for the vessel M T CHAFA to be delivered to the vessel at Singapore Port on 13.01.2018 as per the email dated 08.01.2018. 4. On receipt of the above confirmed purchase order from the AZA Shipping, the applicant placed purchase order on the M/S. Innospec Limited vide P.O. No. EPM-1718-608 dated 08.012018 for delivering 75 Litres of OCTAMAR LI-5 to vessel M T Chafa at Singapore. 1.5. The said order placed by the applicant on I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er's vessel which is also located outside the taxable territory of India. Thus we find that the transaction is similar to the selling of goods on High Seas Sale basis since in both the cases the goods purchased do not cross the customs frontiers of India. In view of the above facts we would be required to refer to the provisions of IGST Act, 2017. First of all to confirm the nature of supply of present goods i.e. whether inter-state or intra-state we are required to refer to Chapter IV of the IGST ACT, 2017, which reads as under:- CHAPTER IV DETERMINATION OF NATURE OF SUPPLY Inter-State supply 7. (1) Subject to the provisions of section 10, 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. (2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India shall be treated to be a supply of goods in the course of inter-State trade or commerce. Intra-State supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962. (2) . (3) . (4) .; (5) .; We find that proviso to Section 5(1) of the IGST Act states that Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Ad at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962 . Thus from the above it is clear that integrated tax on goods imported into India is to be levied and collected in accordance with Section 3 of the Customs Tariff Act, 1975 and Section 12 of the Customs Act, 1962 and the same is to be levied and collected at the time of import into India. The goods are considered to be imported into India only after they clear the customs f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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