Separate registration not required in other State if imported goods sold directly from CFS: AAR

Case Details: Authority for Advance Rulings, Maharashtra Kamdhenu Agrochem Industries LLP, In re - [2021] 132 taxmann.com 273 (AAR - MAHARASHTRA)

Judiciary and Counsel Details

• • Rajiv Magoo and T.R. Ramnani, Member

Facts of the Case

The applicant was an importer and reseller of chemicals, having main place of business in the State of Maharashtra. It was registered under the GST law in the State of Maharashtra. It filed an application for advance ruling to determine whether it would be required to obtain registration in importing States other than Maharashtra, if goods would be imported, sold and delivered directly from CFS (Container Freight Station) to customers from those States.

AAR Held

The Authority for Advance Ruling observed that imported goods would be sold by the applicant before the Bill of Entry would be filed or before the goods would be cleared for home consumption on payment of Customs duty and IGST. As per the provisions of section 7(2) of the IGST Act, 2017, supply of goods imported into India shall be treated as supply of goods in the course of inter-State trade. Moreover, as per provisions of section 11(a) of the IGST Act, 2017, the place of supply shall be the location of the importer. In the present case since the importer was registered in Mumbai, the place of supply would be Mumbai, Maharashtra. Hence, the applicant would be allowed to supply the goods on the basis of invoices issued by the Maharashtra Office and, therefore, it would not be required to take separate registration in the State of Import.

Case Review

• • Aarel Import Export (P.) Ltd, In re [2019] 106 taxmann.com 292/74 GST 662 (AAR – Mah.) (para 5.7.6) and
  • Gandhar Oil Refinery (India) Ltd., In re [2019] 106 taxmann.com 291/76 GST 446 (AAR – Mah.) (para 5.7.6) distinguished.

List of Cases Referred to

• • Aarel Import Export (P.) Ltd, In re [2019] 106 taxmann.com 292/74 GST 662 (AAR – Mah.) (para 5.7.6) and
  • Gandhar Oil Refinery (India) Ltd., In re [2019] 106 taxmann.com 291/76 GST 446 (AAR – Mah.) (para 5.7.6) distinguished.