In re Deccan Transco Leasing Private Limited (GST AAR Telangana)
Is GST liable to be paid on leasing of tank containers taken form a supplier i e., lessor who is located outside India and the tank containers do not reach India? As it is finance lease, it is supply of goods and tank containers do not reach the Indian Territory.
Yes. The applicant is liable to pay IGST on importation of lease services into India in light of the above discussion.
Read AAAR Order : GST on leasing of Tank Containers taken from a supplier located outside India
FULL TEXT OF THE ORDER OF AUTHORITY OF ADVANCE RULING, TELANGANA
ORDER UNDER SECTION 98(4) OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 AND UNDER SECTION 98(4) OF THE TEALANGANA GOODS AND SERVICES TAX ACT,2017.
1. M/s. Deccan Transco Leasing Private Limited, Block -2 (DG-6) Flat No. :103, Raintree Park, Spinal Road, Kukatpally, Hyderabad – 500 072 Telangana. (GSTIN No. 36AABCL4306J1ZN) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules.
2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression ‘GST Act would be a common reference to both CGST Act and TGST Act.
3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The concerned jurisdictional officer also raised no objection to the admission of the application. The application is therefore, admitted
4. Brief facts of the case:
M/s Deccan Transcon Leasing Private Limited ( DTLPL ) are Non-vessel owner container carriers/ Operators (NVOCC) who arc based in India but lease containers from suppliers outside the country and in turn use it in transportation of bulk chemicals
The applicant entered into a lease purchase agreement from M/s. Tankspan Leasing Limited (TLL) on 28.08.2018. In terms of this agreement the applicant pays lease rentals every month and he is entitled for the purchase of the container during the period of lease or at the end of the lease period by paying the agreed rate.
The applicant submits that they have recognized the tank containers and assets in the books of account from the inception of the lease and there is certainty that the same would be purchased later. Therefore the applicant is of the opinion that this transaction is a transaction for supply of goods from the inception of the agreement in terms of SLNo.l(c) of Schedule II to Section 7. The applicant abstracted the said entry’ and opined that all the requirements mentioned in the entry in the schedule II are fulfilled by them i.e.,-
