|
Case Title |
SPX flow technology India Pvt Ltd. |
|
Court |
Authority for Advance Ruling, Gujarat |
|
Honorable Judges |
Member P Gupta and Member Seema Arora |
|
Citation |
2021 (11) GSTPanacea 84 HC Gujarat GUJ/GAAAR/APPEAL/2021/34 |
|
Judgement Date |
02-November-2021 |
|
Council for Petitioner |
Mr. Anal P Dave |
|
Council for Respondent |
Not applicable |
|
In favour of |
Revenue |
|
Section |
Levy of GST |
The Appellate Authority for Advance Ruling, Uttar Pradesh bench of Member, held that IGST is applicable on the supply of goods outside India from outside India.
FACTS OF THE CASE
The Appellant, engaged in the business of supply of pumps, had received a purchase order from Bangladesh. Upon receipt of such purchase order, the parent Company of the Appellant, situated in Poland, directly shipped the goods to the customer in Bangladesh. In view of the above, the Appellant had sought an advance ruling before the Gujarat AAR to ascertain whether the Appellant is liable to pay IGST on out-and-out transactions taking place beyond the Customs frontiers of India. The AAR had held that IGST would be leviable on such transactions prior to 01 February 2019. Aggrieved, the Appellant preferred an Appeal before the Gujarat AAAR.
COURT HELD
Gujarat AAAR observed that Entry 7 of Schedule III covers the supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering India. The AAR further observed that the supply of goods in the instant case takes place from Poland, which is a non-taxable territory, to Bangladesh, which also is a non-taxable territory, without the said goods entering India, the transactions are covered by said Entry 7 of Schedule – III. In view of the above, the AAAR held that no GST is leviable on such types of transactions which have taken place with effect from 01 February 2019 and onwards.
ANALYSIS OF THE JUDGEMENT
As per the above case, we analyse that IGST is applicable to the supply of goods outside India from a place outside India till January 31, 2019.
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SPX flow technology India Pvt Ltd.
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