Separate registration not required in importing State if imported goods sold directly from port of import: AAR

Case Details: Authority for Advance Rulings Karnataka Pine Subsidiary Industry, In re - [2022] 134 taxmann.com 294 (AAR - KARNATAKA)

Judiciary and Counsel Details

• • Dr. M.P. Ravi Prasad and T. Kiran Reddy, Member
  • Rishab Singhvi, CA and DAR for the Applicant.

Facts of the Case

The applicant was an importer of Gum Resin and Damar Battu having registered office in Bengaluru and holding GST certificate of Karnataka State. It filed an application for advance ruling to determine whether it would be required to obtain registration in importing States as well, if goods would be imported, sold and delivered directly from CFS (Container Freight Station) to customers from those States.

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 AAR Held

The Authority for Advance Ruling observed that as per the provisions of place of supply of Goods under section 11(a) of IGST Act, 2017, “the place of supply of goods imported into India shall be the location of the importer”. In the instant case, location of the importer would be the state of Karnataka where the applicant obtained the GST registration. Therefore, the applicant though imports the goods to the port of Chennai, imported goods would be deemed to have been supplied to the location of the importer i.e., Karnataka and then further supplied to customer. Hence the transaction where imported goods supplied directly from the port of import to the customer located in other states or Union territories other than state of Karnataka, such transaction shall be treated as a supply of goods in the course of inter-State trade. Therefore, the applicant would be allowed the transaction using Karnataka GSTIN and separate registration not required in importing State.

List of Cases Referred to

• • Kardex India Storage Solution (P.) Ltd., Inre [2020] 116 taxmann.com 865/81 GST 339 (AAR-Karnataka) (para 5.5)
  • Aarel Import Export (P.) Ltd., Inre [2019] 106 taxmann.com 292/74 GST 662 (AAR-Maharashtra) (para 5.6).

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