M/s. Aarel Import Export Private Ltd. (“the Applicant”) is an importer and exporter & trader of products such as Black Matpe, Toor Whole, Coke, Agarbatti, etc. The Applicant is registered under the Central Goods and Services Tax Act, 2017 (“CGST Act”) having its head office at Mumbai, Maharashtra.
The Applicant wishes to import Coke (processed product from Coking Coal) either Lam Coke or Nut Coke from Indonesia at Paradip Port in the State of Odisha under the HSN code of 2704. Since the Applicant does not have a separate establishment or place of operation in the State of Odisha, goods would be stored at a rented Customs warehouse (Ex-bond) (“warehouse”) at Paradip Port. The Applicant seeks to clear the goods from the warehouse in the name of Mumbai office using Maharashtra Goods and Services Tax Identification Number (“GSTIN”) where the importation will be completed on payment of customs duties, if any. Integrated Goods and Service Tax (“IGST”) will also be charged using Maharashtra GSTIN. The Applicant further wishes to sell the goods directly from Paradip Port warehouse (EX-BOND) to the customers in Odisha and accordingly charge IGST to customers by raising invoices issued by the Mumbai office itself not Odisha.
1. Whether the practice of raising of invoices from Mumbai office, for imports received at Pradip Port, Odisha (where no separate GST Registration has been taken) and charging IGST from Mumbai office for sales made to customers in Orissa is correct?
2. Whether there is a requirement to take separate GST Registration in the State of Odisha for the above-mentioned transaction.? If there is no requirement to take a separate registration, whether the Applicant can issue an E-Way Bill with GSTIN of Mumbai office and Dispatch place as Paradip Port.
Contentions of the Applicant:
The provisions pertaining to Inter-State supply is provided under Section 7 of the Integrated Goods and Service Tax Act, 2017 (“IGST Act“). Section 7(2) clearly provides as under:
“Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce.”
Therefore, supply of goods imported into the territory of India are in the course of inter-state supply, leviable to IGST. Provisions pertaining to “Place of supply of goods imported into or exported from India” are provided under Section 11 of the IGST Act. Section 11 (a) states as under:
The place of supply of goods-
In the present case, since the importer is registered in Mumbai, the place of supply shall be in Mumbai, Maharashtra and the place from where the supplier makes a taxable supply of goods shall be the location of the supplier i.e. the Mumbai office. Since the Applicant does not have any go-down in the state of Odisha, separate registration need not be taken in the state of Odisha.
Further, for the imported goods being sold to the customers in Odisha, the Applicant being registered only in Maharashtra, is selling the goods referring to Maharashtra GSTIN Registration number. Hence, it is an inter-state supply of goods as defined in Section 7(2) of the IGST Act and therefore the transaction attracts IGST. As separate GST registration in the state of Odisha is not required, the applicant can generate e-way bill from the Mumbai office GSTIN and dispatch place as customs warehouse situated at Paradip Port, Odisha.
Basis the submissions, the Hon’ble Advance Ruling Authority, held that the since Applicant is an importer, when the goods are imported into Orissa, the place of supply of goods shall be the location of importer i.e. Mumbai, Maharashtra (Section 11(a) of the IGST Act). Therefore, separate registration need not be taken in the State of Odisha. Also, the Applicant makes taxable supply of goods from Mumbai Head Office, as the Applicant doesn’t have any establishment or office in the state of Odisha. The place from where the supplier makes a taxable supply of goods shall be the place of supply i.e. Mumbai, and hence the Applicant can clear goods on the basis of invoices issued by the Mumbai head office.
As regards the second question, it was held that as the Applicant need not take any separate registration in Odisha and can facilitate the transaction through Mumbai Head Office GSTIN, it appears to be correct to mention the GSTIN of Mumbai in the E-Way Bill and Dispatch place as Customs warehouse situated at Paradip, Odisha.