In re MCM Pacific PTE Ltd (GST AAR Andhra Pradesh)
Authority for Advance Ruling (AAR) in Andhra Pradesh addressed a query from M/s. MCM Pacific PTE Ltd, a Singapore-based company, regarding the tax implications of purchasing assets from an Indian company, M/s. Lanco Kondapalli Power Ltd, which is undergoing liquidation. MCM Pacific sought clarification on whether the transaction would qualify as a zero-rated supply under Section 16 of the Integrated Goods and Services Tax (IGST) Act, allowing the export of goods without the payment of GST.
MCM Pacific is acquiring assets from Lanco Kondapalli Power Ltd, which is in liquidation, to export them to Myanmar. The company does not have business operations or registration in India. The process involves purchasing, dismantling, and exporting the assets. The central question was whether this outward supply could be treated as zero-rated under IGST provisions, which generally apply to exports, enabling suppliers to claim refunds or make exports without paying GST.
Lanco Kondapalli Power Ltd’s representation highlighted that the sale process for the assets would conclude in India upon the issuance of a sale certificate, and MCM Pacific would be responsible for the dismantling, transportation, and export of the assets. The representation clarified that Lanco and its liquidator are not exporters and would not bear any tax liabilities for the transaction. MCM Pacific is required to handle all aspects of the asset transfer and export.
