9911796707
TMI Blog2021 (11) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act & KGST Act. 2. The Applicant is a Limited Company, registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively), engaged in manufacturing of packaging material which includes HDPE Drums, Jerricans and 1000 litre Intermediate bulk containers (IBC's). 3. The applicant supplies HDPE drums, on receipt of a purchase order from a merchant exporter, raises invoice for supply of said drums on the merchant exporter and delivers the same, as per the merchant exporter's direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hol) and other chemicals falling under Tariff Item 22071090. Ethyl Alcohol is packed by this chemical manufacturer in the drums supplied by the applicant and thereafter it is subsequently exported out of India by the merchant exporter. 5.3 At the time of export, the Merchant Exporter prepares Shipping Bill, commercial invoice and packing list. In part II of shipping bill (Invoice details) the Merchant Exporter shows the name of its supporting manufacturers (SM)-(1) the supplier of Ethyl Alcohol and (2) the supplier of HDPE drums. The details mentioned include the applicant's product's HSN Code, their name and GST number, invoice number, quantity supplied against the said invoice and invoice date against which the said drums were supplied b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uoting the conditions (vi), (vii) & (viii) of the Notification No.40/2017-Central Tax (Rate) dated 23.10.2017, contends that the goods cleared from manufacturers' factory on payment of 0.1% of Integrated Tax should be exported by the registered recipient within 90 days from the date of issue of tax invoice by the registered supplier from Port, ICD, Airport or Land Customs Station directly without subjecting to any process. 6.2 In the present case, the drums intended to be cleared under Notification No.41/2017-Integrated Tax (Rate) and similar CGST Notification No.40/2017-Central Tax (Rate) both dated 23.10.2017 on payment of Integrated Tax of 0.1% would be received by chemical manufacturer in his factory, wherein the goods manufactured by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturer, who manufactures the ethyl alcohol which is packed in the HDPE drums and then exported by the merchant exporter. Thus, the applicant sought advance ruling in respect of the question mentioned at para 3 supra. 11. The applicant contested that their product HDPE drums are used for packing the ethyl alcohol which is exported by the merchant exporter and hence they are entitled to the concessional rate of 0.1%, in terms of Notification No.40/2017-Central Tax (Rate) dated 23.10.2017 or Notification No.41/2017-Integrated Tax (Rate) dated 23.10.2017. 12. We proceed to examine as to whether the applicant is entitled to the benefit of the Notification supra. In this relation we invite reference to the conditions specifically (vi), (vii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supply of goods to the merchant exporter at concessional rate of GST at 0.1%. To avail the concessional rate of GST, the registered recipient is required to move the goods directly from the place of registered supplier to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported, or to a registered warehouse from where the goods shall be further moved to the Port, Inland Container Deport, Airport or Land Customs Station. In case the merchant exporter procures goods from different registered suppliers, the merchant exporter should move such supplies to the registered warehouse, aggregate such procured goods at the warehouse and should move the goods to the Port, Inland Container Depot, Ai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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