In re Acube Engitech Company (GST AAR Gujarat)
Gujarat Authority for Advance Rulings (AAR) addressed the case of M/s Acube Engitech Company, a manufacturer and supplier of liquid pumps, regarding whether goods supplied under fraudulent circumstances could still be classified as a “supply” under the Integrated Goods and Services Tax (IGST) Act. The applicant argued that they were deceived by individuals who forged documents to place a bogus order, leading to the dispatch of goods without receiving any payment. The applicant sought clarification on whether such a transaction would still qualify as a taxable supply under Section 21 of the IGST Act.
The AAR examined the legal provisions under the IGST and Central Goods and Services Tax (CGST) Acts. Section 12 of the CGST Act, which determines the time of supply, states that supply occurs at the time of invoice issuance or receipt of payment, whichever is earlier. The AAR noted that the applicant had issued invoices for the dispatched goods, thereby fulfilling the conditions for supply as defined under the CGST Act, which is applicable to IGST cases via Section 20 of the IGST Act. The ruling clarified that the concept of “supply” in GST is broader than “sale” under the Sale of Goods Act, 1930, and does not depend on the receipt of payment.
