Case Law Details
In re Tvl. DCW Limited (GST AAR Tamilnadu)
In the case of M/s. DCW Limited seeking an Advance Ruling from the Authority for Advance Ruling (AAR) Tamilnadu regarding the liability of Goods and Services Tax (GST) on ocean and air freight for exports, several pertinent details and legal interpretations were discussed.
M/s. DCW Limited, engaged in chemical manufacturing, sought clarification on whether they are liable to pay GST on export freight, and if the shipping line handling their goods is similarly liable. The query arose due to the sunset clause on GST exemption for ocean and air freight, which ceased on October 1, 2022, rendering such freight taxable. DCW Limited, the exporter, sought clarity on the nature of GST to be paid on freight paid to shipping lines.
The AAR examined various aspects, including the applicability of notifications, the interpretation of relevant legal provisions, and the changing landscape of GST regulations concerning the place of supply. Initially, the AAR noted that the queries fell under sections of the CGST Act, 2017, pertaining to the applicability of notifications, liability to pay tax, and determination of supply.
The AAR delved into the provisions concerning the place of supply of goods and services under the Integrated Goods and Services Tax (IGST) Act, 2017, particularly Sections 10, 11, 12, and 13, which address different scenarios of place of supply. The AAR highlighted that changes in regulations had significant implications on the tax liability for outbound shipments.
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