TMI Blog2020 (6) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... are consigned/destined and such movement is effected by the recipient or by any other person such as transporter authorized by the recipient. The place (in the other state) where the goods are destined turns out to be the place of supply in terms of Sec. 10(1)(a) ibid. Consequently, the location of supplier and the place of supply fall under different states and the supply qualifies as inter-State supply - the supplier in the stated instance is liable to charge IGST in respect of ex-factory inter-State supplies made by them. - A.R.Com/23/2018, TSAAR Order No.03/2020 - - - Dated:- 2-3-2020 - Sri J. Laxminarayana, Additional Commissioner(Grade-I) (State Tax) and Sri B. Raghu Kiran, IRS, Joint Commissioner (Central Tax) TSA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. The application is therefore, admitted. 4. Brief facts: The facts, in brief, that were reported by the applicant are as follows: a. They are manufacturers of cement having two cement plants in Telangana; b. They occasionally make inter-State sale of cement on exfactory/works basis from their plants in Telangana; c. As per Sec. 10(1)(a) of IGST Act, 2017, place of supply shall be where movement of goods terminates; When they make ex-factory sales from their plant, delivery terminates at their factory gate itself and therefore, CGST and SGST should be charged on such type of supplies. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruling on the nature of tax chargeable on ex-factory inter-State supplies. To determine the said point, reference shall be made to the legal provisions concerning levy of IGST and CGST SGST. 8.2 Sec. 9(1) of GST Act provides for levy of CGST and SGST on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption. Further, Sec. 5(1) of the IGST Act, 2017 prescribes the levy of IGST on all interState supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption. 8.3 Inter-State and intra-State supplies have explicitly been defined in Section 7(1), 7(2) and 8(1), 8(2) of the IGST Act respectively. These provisions in essence lay dow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant, there is a scope for inference that in case of ex-factory sales, since the delivery of goods to recipient takes place at factory gate so far as supplier is concerned, location of the supplier s factory can be reckoned as place of supply. However a careful appraisal of the provisions of Sec. 10(1)(a) does not suppose such inference. We noted that the usage of the words whether by the supplier or by recipient after the words where the supply involves movement of goods under the said section perceptibly indicates that the movement can be effected by the supplier or by the recipient or by any other person authorized by the recipient. This leads to the conclusion that, in terms of Sec. 10(1)(a), movement of goods in case of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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