In re Sanctum Trading Corporation Private Limited (GST AAR Maharashtra)
M/s. Sanctum Trading Corporation Private Limited filed an application before the Maharashtra Authority for Advance Ruling (AAR) seeking a ruling on whether imported goods stored in its bonded warehouse and supplied to foreign-going merchant vessels on foreign run, Indian Navy ships, and Indian Coast Guard ships would qualify as export sales (zero-rated supplies) under GST. The applicant also initially sought clarification on whether such supplies could be made under a Letter of Undertaking (LUT) without payment of IGST, but subsequently withdrew that question.
The applicant operated a bonded warehouse under the Customs Act, 1962 and stored imported goods such as cosmetics, toiletries, food products, confectionery, and cigarettes without payment of customs duty. These goods were supplied from the bonded warehouse to foreign-going merchant vessels, Indian Navy ships, and Indian Coast Guard ships after filing duty-free shipping bills and obtaining customs approval. The applicant contended that such supplies should be treated as exports under GST because customs law permitted warehoused goods to be supplied as ship stores without payment of import duty. The applicant also relied on CBIC Circular No. 113/32/2019-GST and an Andhra Pradesh AAR ruling in support of its position.
