In re Sterlite Technologies Ltd (GST AAR Gujarat)
The Gujarat bench of Authority for Advance Ruling recently passed a ruling in case of M/s. Sterlite Technologies Ltd (applicant) which brought a sense of ambiguity in the minds of taxpayers. The Applicant sought advance ruling on two transactions which it propose to undertake. However, In this article, only one has been discussed as the relevant question on GST laws. The applicant sought advance ruling on applicability of GST on supply of goods which were purchased outside India and then sold outside India without being brought into India.
Brief Facts of the Case
- M/s. Sterlite Technologies Ltd proposed to undertake ‘’Merchant Trade Transaction’
- Wherein they would receive an order from customer located outside India;
- Back to back order would be placed by them to supplier located outside India;
- Goods would be directly shipped by vendor outside India to customer located outside India;
- Payment would be made in foreign currency to vendor and applicant would receive foreign currency from customer.
They therefore wished the Authority for Advance Ruling to determine if any GST is payable on goods procured from vendor outside when goods purchased are not brought into India and whether GST would be payable on goods sold to customer located outside India.
Hearing before AAR
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