2018 (12) TMI 532 - AAR - GST

Authority Confirms Mumbai Head Office Can Charge IGST for Imports via Haldia Port

The authority ruled that the procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port Kolkata without separate GST ... Place of supply - registration in State from where taxable supply is made - import of goods treated as inter state supply - location of the importer - e way bill: GSTIN of consignor and dispatch placePlace of supply - registration in State from where taxable supply is made - import of goods treated as inter state supply - location of the importer - Whether separate GST registration in West Bengal is required when imported goods are stored in a customs bonded warehouse at Haldia and invoices are raised from the Mumbai Head Office charging IGST. - HELD THAT: - The Authority found that supplies of goods imported into India fall within inter state trade or commerce and, for such imported goods, the place of supply is the location of the importer. The applicant is an importer registered in Mumbai and intends to clear the imported goods ex bond in the name of its Mumbai Head Office, paying applicable taxes at import. The applicant has no establishment, place of business or godown in West Bengal other than storage in a rented customs bonded warehouse. Registration under the GST law is required in the State from which a supplier makes taxable supplies. Since the place from which the applicant makes taxable supply, as determined for imported goods, is the Mumbai location of the importer and not West Bengal, the Authority concluded that separate registration in West Bengal is not required for the stated transactions. [Paras 6, 7, 8]No separate GST registration in West Bengal is required for the described transactions; the place of supply is the Mumbai location of the importer and the supplier may invoice from the Mumbai GSTIN charging IGST.E way bill: GSTIN of consignor and dispatch place - GSTIN of supplier - dispatch location - Whether the applicant can issue e way bills mentioning the Mumbai Head Office GSTIN as the consignor and the customs bonded warehouse at Haldia as the dispatch place when invoicing from Mumbai and charging IGST. - HELD THAT: - Having concluded that the place of supply for the imported goods is the Mumbai location of the importer and that invoices may be raised from the Mumbai GSTIN with IGST paid at import, the Authority held that it is permissible to carry out subsequent transactions on the Mumbai Head Office GSTIN. Consequently, it is acceptable to mention the Mumbai GSTIN in the e way bill while recording the dispatch place as the customs bonded warehouse at Haldia, subject to issuance of a proper tax invoice and payment of applicable IGST (or CGST+SGST/Compensation Cess as may be applicable in other cases) in accordance with law. [Paras 7, 8]The applicant may transact on the Mumbai Head Office GSTIN and may mention the Mumbai GSTIN in the e way bill with the dispatch place as the Haldia customs warehouse, subject to compliance with invoicing and tax payment requirements.Final Conclusion: The Advance Ruling answers both questions in the applicant's favour: no separate GST registration in West Bengal is required for the described import store ex bond supply arrangement, and transactions (including e way bills) may be effected on the Mumbai Head Office GSTIN with the Haldia customs warehouse shown as the dispatch place, subject to proper invoicing and payment of applicable taxes. Issues Involved:1. Whether the procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port Kolkata without separate GST Registration in West Bengal and charge IGST from Mumbai to customers is correct.2. If separate registration in West Bengal is not needed, can transactions be conducted on Mumbai Head Office GSTIN, and is it correct to mention the GSTIN of Mumbai and dispatch place of Haldia Port in the e-way billRs.Issue-wise Detailed Analysis:1. Procedure to Raise Invoice from Mumbai Head Office for Imports at Haldia Port:The applicant, an importer of chemicals, wishes to import chemicals at Haldia Port, Kolkata, and store them at a rented Customs Bonded warehouse without having any establishment or place of operation in West Bengal. The applicant intends to clear the goods from the warehouse in the name of their Mumbai Head Office, which is registered under GST in Maharashtra, and sell the goods to customers in West Bengal and nearby states, charging IGST by raising bills from Mumbai.The applicant argues that since they are only registered in Maharashtra and the supply of goods is from Maharashtra, it constitutes an interstate supply as defined in Section 7(3) of the IGST Act, 2017, and thus attracts IGST. They contend that registration is required in the state from which taxable supplies are made, not the state to which supplies are made.The authority clarified that the nature of supply of goods imported into India is an interstate supply as per Section 7(2) of the IGST Act, 2017. The place of supply for goods imported into India is the location of the importer as per Section 11(a) of the IGST Act, 2017, which in this case is Mumbai, Maharashtra. Therefore, the applicant need not take separate registration in West Bengal as the taxable supply is made from Mumbai.2. Conducting Transactions on Mumbai Head Office GSTIN and Issuance of E-way Bill:The applicant inquired if they could conduct transactions on the Mumbai Head Office GSTIN and if it is correct to mention the GSTIN of Mumbai and the dispatch place of Haldia Port in the e-way bill.The authority confirmed that since the place of supply for the applicant is Mumbai, and the goods will be cleared in the name of the Mumbai registered address while paying IGST at the time of customs clearance, the applicant can conduct transactions on the Mumbai Head Office GSTIN. It is correct to mention the GSTIN of Mumbai Head Office in the e-way bill and the dispatch place as Customs Warehouse, Kolkata, subject to issuance of an invoice and payment of applicable taxes as per law.Order:1. The procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port Kolkata without separate GST Registration in West Bengal and charge IGST from Mumbai to customers is correct. No separate registration in the State of West Bengal is required.2. Transactions can be conducted on Mumbai Head Office GSTIN, and it is correct to mention the GSTIN of Mumbai and the dispatch place of Haldia Port in the e-way bill, subject to following procedure and payment of taxes as per law.The authority concluded that the applicant's practices align with the provisions of the GST Act, and no separate GST registration in West Bengal is necessary for the described transactions.