In Re M/s. Rod Retail Private Limited (GST AAR Delhi)
Though section 105 of CGST Act states that every proceeding before Authority for Advance Ruling (AAR) shall be judicial proceedings, however, Rule 103 of CGST rules states that both the member judges of this authority shall be officers not below the rank of joint commissioners. Departmental officers are members of this so called ‘judicial proceedings’ in AAR.
Further, section 103 states that AAR ruling shall be binding on applicant and concerned ‘jurisdictional’ officer of the applicant.
With this background in mind, below is the analysis of recent Delhi AAR ruling in the application of ROD Retail Private Limited:
Facts in Hand:
Applicant was supplying ‘sunglass hut’ (hereinafter referred to as ‘goods’) to international outbound passengers (i.e. passengers going out of India) from the duty-free shop (retail outlet) located in the security hold area of IGI Airport, Delhi (i.e. security hold area is located beyond the customs area. A passenger for boarding flight needs to first pass customs and immigrations area (where customs verification happens) and thereafter these shops are situated in security hold area/departure lounge). These goods are purchased by applicant from Gurgaon at 28% IGST.
Question on which ruling was required?
Applicant wishes to obtain advance ruling as to whether such supplies of goods qualifies as ‘exports’ within the meaning of section 2(5) of IGST Act and consequently zero-rated benefit is available.
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