The Gujarat Authority of Advance Ruling (AAR) ruled that IGST is payable where goods are shipped directly from the vendor’s premises located outside India to the customer’s premises located outside India till January 31, 2019. However, after February 1, 2019, no IGST is applicable to such transactions.
The applicant M/s. SPX Flow Technology (India) pvt. Ltd. is a company engaged in the business of manufacturing goods like pumps designed for handling water, single and multi-stage pumps designed for handling water, single and multi-stage pumps, dairy machines etc. falling under Chapter 84 and other such products which are classifiable under Chapter 84 of the GST Tariff. The applicant also carries out business of trading in such goods.
The applicant has sought the advance ruling on the issue whether the activity undertaken by the applicant is covered by Entry No.7 in Schedule 3 of the CGST Act, 2017 and whether the applicant is liable to pay IGST on out and out transactions taking place beyond the Customs frontiers of India.
The Coram consisting of Sanjay Saxena and Mohit Aggarwal observed the activity undertaken by the applicant M/s. SPX Flow Technology (India) pvt. ltd., Ahmedabad is covered under Entry No.7 in Schedule 3 of the CGST Act, 2017 in respect of the transactions undertaken for the period from February 1, 2019 onwards.
The AAR ruled that applicable IGST is payable on goods sold to customers located outside India, where goods are shipped directly from the vendor’s premises (located outside India) to the customer’s premises (located outside India) for such transactions effected upto January 31, 2019.
However, the AAR held that no IGST is payable on such transactions effected from February 1, 2019 onwards.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in
