No GST on supply of goods from place in non-taxable territory to another place in non-taxable territory without entering into India: AAR

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  • Last Updated on 24 September, 2021

Scope of Supply under GST

Case Details: Authority for Advance Rulings, Karnataka Guitar Head Publishing LLP, In re - [2021] 130 taxmann.com 242 (AAR - KARNATAKA)

Judiciary and Counsel Details

    • Dr. M. P. Ravi Prasad and Mashhood Ur Rehman Farooqui, MEMBER
    • Veeresh, CA for the Applicant.

Facts of the Case

The applicant was engaged in business of selling guitar head books in United States of America, United Kingdom and Canada through website. It sought advance ruling in respect of issue as to whether GST would be payable on Guitar Head Books purchased through Amazon located outside India to customers outside India when the books would not be brought into India.

AAR Held

The Authority for Advance Ruling observed that Schedule III of CGST Act, 2017 specifies certain activities or transactions that shall be treated neither as a supply of goods nor a supply of services. Para 7 of the this Schedule stipulates that supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India shall neither be treated as supply of goods nor supply of services.

In the instant case, the applicant was involved in supply of books, purchased from Amazon who owned the books, from a place outside India, a non-taxable territory, to another place outside India, a non-taxable territory, without the said goods entering into India. Thus the supply of books by the applicant would neither be supply of goods nor supply of services, in terms of Schedule II to section 7 of CGST Act, 2017.

List of Cases Referred to

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