TMI Blog2021 (8) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... ither supply of goods nor supply of services. In the instant case the applicant is involved in supply of books, purchased from Amazon who owned the books, from a place outside India, a non-taxable territory, to another place outside India, a non-taxable territory, without the said goods entering into India. Thus the impugned supply of books by the applicant is neither supply of goods nor supply of services, in terms of schedule II to Section 7 of the CGST Act 2017. - KAR ADRG 38/2021 - - - Dated:- 30-7-2021 - DR. M.P.RAVI PRASAD AND SRI. MASHHOOD UR REHMAN FAROOQUI, MEMBER Represented by : Mr. Veeresh, Chartered Accountant ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s. Guitar Head Publishing LLP, # 306/A, Ground Floor, 13th Cross, Near LCA Ramesh Nagar, Marathahalli, Bengaluru-560037 having GSTIN number(29AAVFG2223Q1ZN), have filed an application for Advance Ruling under Section 97 of CGST Act,2017, KGST Act, 2017 IGST Act, 2017 read with Rule 104 of CGST Rules 2017 KGST Rules 2017, in form GST ARA-01 discharging the fee of ₹ 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is enga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b) Sales through Amazon platform c) Online Guitar training Courses through the website of Guitar Head Sales through own website: In this transaction, Applicant places the order with Amazon Inc to supply Guitar Head Books. Amazon Inc supplies the Guitar Head Books by billing it to Guitar Head Bangalore and Ships the Guitar Head Books to the warehouse located outside India. The books are stored in the warehouse for quick delivery to the customer. Customer in USA, UK and Canada places an order through Applicant's website by making payment in Foreign Currency. Applicant shares the order detail to the warehouse service provider, who in turn ships the books to customer. Applicant pays warehouse charges Shipping charges to the respective service provider. Applicant collects with the price of book along with shipping charges. Sales through Amazon platform: Customer places an order through Amazon web portal by making payment either for physical book or e-book. Amazon collates all the orders, print the books ships to customers located outside India and in case of e-books, Amazon will share the link to download the material in any of the electronic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person; 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 determined under the said Act at the point of when duties of customs are levied on the said goods under Section 12 of the Customs Act, 1962. 5.4 The Customs Tariff Act, 1975 was amended by The Taxation Laws Amendment Act, 2017 by introducing sub-section (7) in Section 3 of the Customs Tariff Act, 1975 with effect from 01.07.2017 to enable collection of integrated tcuc on the goods imported. The relevant provisions of the amended Section 3 of the Customs Tariff Act, 1975 reads as follows.- (7) Any article which is imported into India shall, in addition, be liable to integrated tax at such rate, not exceeding forty per cent as is leviable under section 5 of the Integrated Goods and Services Tax Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (8) or sub-section (8A), as the case may be. (8) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er that section. iii. in the case of any the goods, on the date of payment of duty: Provided that if a bill of entry has been presented before the date of entry inwards of the vessel or the arrival of the aircraft or the vehicle by which the goods-are imported, the bill of entry shall be deemed to have been presented on the date of such entry inwards or the arrival, as the case may be. (2) The provisions of this section shall not apply to baggage and goods imported by post. 5.6 From a combined reading of the above provisions of the IGST Act, 2017, the Customs Tariff Act, 1975, and the Customs Act, 1962, it is evident that the integrated tax on goods imported into India shall be levied and collected at the point when duties of customs are levied on the said goods under Section 12of the Customs Act, 1962 i.e. on the date determined as per provisions of Section 15 of the Customs Act, 1962. 5.7 Reference has been received in the Central Board of Excise and Customs regarding clarity on Leviability of Integrated Goods and Services Tax (IGST) on High Sea Sales of imported goods. The CBEC by Circular No. 33/2017-Customs dated 01.0B.2017had clarified as follows; 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alue, the department may reject the declared transaction value and determination the price of the imported goods as provided in the Customs Valuation rules. 5.8 The above circular is applicable in the present case. Similarly, we find that, where, Bill of Entry/import declarations are not being filed with respect to the goods so procured, GST would not be leviable. 5.9 The issue has been decided by Authority for Advance Ruling, Kerala vide ORDER No. CT/12275/18-C3 DATED 26/03/2018 in the case of M/s Synthite Industries Ltd., Kerala. It was held that,- The applicant is neither liable to GST on the sale of goods procured from China and directly supplied to USA nor on the sale of goods stored in the warehouse in Netherlands, after being procured from China, to customers, in and around Netherlands as the goods are not imported into India at any point. 5.10 The issue has been decided by Authority for Advance Ruling, Gujarat vide ORDER No. GUJ/GAAR/R/04/2020 DATED 17/03/2020 in the case of M/s Sterlite Technologies Ltd., Gujarat. It was held that GST is not payable on goods procured from vendor located outside India, where the goods so purchased are not brought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for such clearance and hence no GST is payable. Further they also referred the ruling of the Advance Ruling Authority, Kerala, in the case of M/s Synthetic Industries Limited. 11. We invite reference to Schedule III relevant to Section 7 of CGST Act 2017, which specifies certain activities or transactions that shall be treated neither as a supply of goods nor a supply of services. Para 7 of the said schedule stipulates that Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India as neither supply of goods nor supply of services. In the instant case the applicant is involved in supply of books, purchased from Amazon who owned the books, from a place outside India, a non-taxable territory, to another place outside India, a non-taxable territory, without the said goods entering into India. Thus the impugned supply of books by the applicant is neither supply of goods nor supply of services, in terms of schedule II to Section 7 of the CGST Act 2017. 12. In view of the foregoing, we pass the following RULING The Guitar Head Books purchased from Amazon Inc.-USA (located outside Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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