Foreign supplier exporting goods to FTWZ which subsequently sold to Indian customers need not register under GST

By Editor4 Goods and Services Tax Judiciary December 31, 2018

TaxGuru Citation: 2018 taxguru.in 2345
Case Name: In re M/s. Sadesa Commercial Offshore De Macau Limited (AAR Tamilnadu)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: AAR Tamilnadu, Advance Rulings

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In re M/s. Sadesa Commercial Offshore De Macau Limited (AAR Tamilnadu)

Whether sale of tanned bovine leather stored in Free Trade Warehousing Zone (FTWZ) by a foreign supplier which is cleared to Domestic Tariff Area (DTA) customer in India would result in supply subject to levy under sub section 1 of section 5 of the IGST Act 2017 or under the provisions of CGST Act, 2017 or Tamil Nadu GST Act, 2017 and the rules made there under?

1. For supply of warehoused goods, while being deposited in FTWZ on or after 01.04.2018, the applicant is not liable to pay IGST at the time of removal of goods from the FTWZ to DTA under the provisions of IGST Act in addition to the duties payable under Customs Tariff Act, 1975 on removal of goods from the FTWZ unit.

Whether the foreign supplier being the applicant, located outside the taxable territory and supplying goods to DTA customers on the goods stored in third party FTWZ unit is required to get registered under the IGST ACT 2017 or under the provisions or CGST ACT 2017 or the Tamil Nadu Goods and Service Tax Act, 2017 and the rules made thereunder.

On or after 01.04.2018, in the event the Applicant is exclusively conducting the activity described in their application of exporting goods to FTWZ and which are subsequently sold to Indian customers who clear the same on payment of appropriate customs duties, they are not liable to Registration under Section 23(1) of CGST Act and TNGST Act.