Concessional GST not applicable for supply of goods to merchant exporter which are not moved directly to Port or ICD: AAR

Case Details: Authority for Advance Rulings, Karnataka Time Technoplase Ltd., In re [2022] 134 taxmann.com 44 (AAR - KARNATAKA)

Judiciary and Counsel Details

• • Dr. M.P. Ravi Prasad and T. Kiran Reddy, Member
  • Girish, AR for the Applicant.

Facts of the Case

The applicant was a manufacturer of packing material and it was engaged in supply of HDPE Drums to a merchant exporter. It would deliver goods under instructions of merchant exporter to premises of a chemical manufacturer who manufactures ethyl alcohol which would be packed in HDPE Drums and then exported by merchant exporter. It filed an application for advance ruling to determine the availability of concessional rate under Notification No. 41/2017-Integrated Tax (Rate), dated 23-10-2017 for supplying drums to merchant exporters.

AAR Held

The Authority for Advance Ruling observed that in the present case, the impugned goods were not moved directly to Port, Inland Container Depot, Airport or Land Customs Station or to a registered warehouse, which is a pre-condition for availing concessional rate of GST. Therefore, applicant would not be entitled for 0.1 per cent concessional rate of tax under Notification No. 41/2017-Integrated Tax (Rate), dated 23-10-2017 on supply of HDPE Drums.