Applicant’s Name: M/s. Euroflex Transmissions (India) Private Limited
Brief of the Facts:-
The applicant, M/s. Euroflex Transmissions (India) Private Limited, wishes to supply imported goods directly from the port of importation to customers located throughout India, rather than bringing such goods to the applicant’s registered premises in the State of Telangana and issuing a tax invoice from the Telangana location.
Question Raised :-
1. Whether the applicant is required to obtain registration in the state in which goods are imported if the said goods are directly sold from the port of importation to the customers located across different states in India?
2. whether the applicant is entitled to avail the input tax credit of IGST paid on the import of goods if the said goods are sold directly from the port of importation to the customers located across different states in India without bringing such goods into Telangana.
Law :-
1. The liability for registration arises under Section 22 of the CGST Act, 2017 if the supplier makes taxable supplies the aggregate turnover of which exceeds Rs. 20 Lakhs in a financial year. Such registration is to be obtained in the State from which the taxable supply is made.
2. in the case of supply of goods made from a customs warehouse, such supply is not treated as supply of goods under Entry 8 of the Schedule III to the CGST Act, 2017 if it is a: a. Supply of warehoused goods to any person before clearance for home consumption. b. Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption.
Findings :-
1. The transactions made by the applicant after clearing them from customs in their own account are subsequent sales and not sales in course of import, where the customs clearance will be made by the purchaser in which case the transactions will be covered under Entry 8 of Schedule III to the CGST Act, 2017
2. This subsequent sale when made to a customer within the State of Telangana will be an intra State sale liable to CGST & SGST and when such sale is made to a customer in other States of a country it will be a Inter-State sale liable to IGST
3. After clearing the goods by paying customs duty and IGST the applicant is making inter-state supply of the same from the customs warehouse without taking such goods to their own business premises.
Conclusions :-
1. The applicant is already having the registration in the State of Telangana with GSTIN: 36AAACE5313K1ZS which will cover all taxable transactions. So there is no need to obtain registration in the state in which goods are imported if the said goods are directly sold from the port of importation to the customers located across different states in India.
2. Yes, the Applicant is entitled to avail Input Tax Credit of IGST paid on import of goods if the said goods are sold directly from the port of importation to the customers located across different states in India, without bringing such goods into Telangana.
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