In re AIE Fiber Resource and Trading (India) Private Limited (AAR Telangana)
GST on Supply of imported goods to Indian customers from FTWZ
The Telangana Authority of Advance Ruling (AAR) in Re: M/s AIE Fiber Resource and Trading (India) Private Limited. [Advance Ruling No. /07/2019 TSAAR Order No. 30/2021 dated December 24, 2021] held that no IGST is payable on supply of imported goods on High Sea Sales basis to Indian customers and proportionate reversal of input tax credit (ITC) is not required.
Facts:
M/s AIE Fiber Resource and Trading (India) Private Limited, Hyderabad (“the Applicant”) is intending to supply imported goods to Indian customers on High Sea Sale (“HSS”) basis from Free Trade Warehousing Zone (“FTWZ”). The Applicant sells the imported goods before goods cross the customs frontier of India i.e., prior to clearance of goods from the customs to pre-identified customers.
The Applicant directs the FTWZ warehouse keeper to deliver the goods to a customer chosen by the Applicant.
Issues:
- Whether the Applicant’s activity of supplying the goods before clearance for home consumption is liable to IGST or not under Integrated Goods and Services Tax Act, 2017 (“the IGST Act”). If not, then whether proportionate ITC required to be reversed.
- Further, whether the Applicant is required to take registration at the FTWZ facilities.
Held:
The AAR, Telangana in [Advance Ruling No. /07/2019 TSAAR Order No. 30/2021 dated December 24, 2021] held as under:
