In re Panasonic Life Solutions India Private Limited (GST AAR Tamilnadu)
The activity of the transfer of title of goods stored in FTWZ Unit by the applicant to its customers in Domestic Tariff Area (DTA) or multiple transfer within the FTWZ will get covered under para 8(a) of Schedule-III of the CGST/TNGST Acts 2017
Panasonic Life Solutions India Private Limited sought an advance ruling on the GST implications related to their operations involving goods stored in a Free Trade Warehousing Zone (FTWZ). They presented three key queries:
- Whether the transfer of goods from the FTWZ to customers in the Domestic Tariff Area (DTA) or within the FTWZ followed by removal would fall under para 8(a) of Schedule III of the CGST Act.
- If the above scenario is not covered, whether Integrated Goods and Service Tax (IGST) is payable in addition to the customs duty by the customer in DTA on the removal of goods from the FTWZ.
- Whether any reversal of input tax credit (ITC) is required if the goods are not covered under para 8(a) of Schedule III, especially in light of the amended Section 17(3) of the CGST Act.
The applicant later modified the third query to focus on the requirement of ITC reversal irrespective of the coverage under Schedule III.
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