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TMI Blog2021 (11) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... n and Damar Battu etc. 3. The applicant has sought advance ruling in respect of the following questions: i. Whether Tax Invoice from Bengaluru office (Registered Place of Business) for imports received at Chennai Sea Port and directly sold to a customer either in Andhra Pradesh, Tamil Nadu, etc., could be raised, or a separate registration is to be obtained at the place of Importation, i.e. Tamil Nadu for the mentioned transactions? Whether the contents and details of the sample draft invoice are correct in law. ii. If we do not need separate registration in Tamil Nadu, can we do the transaction using Karnataka GSTIN. If yes, then in case of issuance of e-way bill, is it correct to mention the GSTIN of Karnataka and the place of dispatch as Chennai Sea Port? iii. Whether Input tax credit would be available to the registration in Karnataka u/ s 16(2) even though the goods have not been physically received in the premises of the applicant but directly transported to the customer? What is the required documentation to avail input tax credit in such cases? 4. Admissibility of the application: The question is about "admissibility of input tax credit of tax paid or deemed to have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "The place of supply in case of import of goods is the location of the importer in terms of section 11(a) of the IGST Act 2017 and in the case of applicant the location of the importer is the state of Karnataka where the applicant has obtained the GST registration. Therefore, the applicant though import the goods to the port nearest to the location of the recipient, said imported goods are deemed to have been supplied to the location of the importer i.e., Karnataka and then further supplied to customer. Hence imported goods supplied directly from the port of import to the customer located in other states or Union territories other than state of Karnataka, such transaction shall be treated as a supply of goods in the course of inter-state trade or commerce in terms of section 7(1) of the IGST Act, 2017 and is liable to issue IGST tax invoice in terms of section 20 of the IGST Act 2017 read with section 31 of the CGST Act 2017. Further, if the applicant supplies the goods to the customers within the state of Karnataka, such transaction shall be treated as intra-State supply in terms of section 8(1) of the IGST Act, 2017 and liable to issue the CGST and SGST tax invoice as per sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re registration, the 'from' location for the outward supply would also be the Bangalore office. 6.5 The applicant states that, accordingly, the location of the supplier, i.e. Bengaluru would raise an invoice and charge IGST from the customer either in Tamil Nadu/Andhra Pradesh or any other State and if the customer is in Karnataka, then it will charge CGST+SGST. Since the applicant does not have any warehouse in the state of Tamil Nadu, and hence, separate registration under Section 22 need not be taken in the state of Tamil Nadu. The applicant is eligible to make an inter-state supply by directly raising an invoice from its Karnataka Registration. 6.6 The applicant is of the view that Section 16(2) provides that the goods should be received in order to avail input tax credit. The explanation to the said section also provides that where goods are directly delivered to a customer under a bill to ship to model then it would be deemed to have received the goods even though the goods are shipped to the end customer location directly. 6.7 The applicant submits that in view of the above explanation u/s 16(2), it has satisfied the said condition and eligible for input tax credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the point when duties of customs are levied on the said goods under the Customs Act, 1962. The integrated tax on goods shall be in addition to the applicable Basic Customs Duty (BCD) which is levied as per the Customs Tariff Act. In addition, GST compensation cess, may also be leviable on certain luxury and demerit goods under the Goods and Services Tax (Compensation to States) Cess Act, 2017. Section 22(1) of KGST / CGST Act 2017 states that Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. Section 2(85) "place of business" includes- (a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e customs frontiers of India, shall be treated as supply of goods in the course of inter-State trade or commerce. The applicant being the importer of Gum Rosin (HSN-38061010) & Damar Battu (HSN-13019022) is liable to pay the integrated tax on goods imported into India in accordance with the provisions of section 3 of the Customs Tariff Act, 1975, on the value as determined under the aforesaid Act at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962, in terms of proviso to the subsection (1) of section 5 of the IGST Act, 2017. In view of the said provisions applicant is liable to pay IGST on the value of the goods imported into India on reverse charge basis. 13. The 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 in terms of section 7(1) of the IGST Act, 2017 and supply of goods where the location of the supplier and the place of supply of goods are in the same State or same Union territory shall be trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a other than Karnataka, the applicant is not required to take any separate registration at the place of importation as explained in para 13 to 15 supra. 18. Further, section 20 of the IGST Act, 2017 read with section 16 of the CGST Act, 2017 provides that IGST paid on import of goods can be utilized as the credit of the input tax if such imported goods are used in the course of furtherance of his business. 19. Section 16 (2) of the CGST Act, 2017 reads as follows: (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both. Explanation - For the purposes of this clause, it shall be deemed that the registered person has received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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