TaxTMI 
TaxTMI 
2021 (8) TMI 351
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....stomer located in USA, UK and Canada. Further, in another business model Applicant is having an agreement with Amazon Inc. Who through their website "amazon.com" based on the choice of the customers either prints the books and sells it to the consumers on their own account or will share the link to download the e-books material in an of the electronic devices & pays royalty to Applicant as agreed between the 2 parties. In view of the above, the Applicant sought advance ruling in respect of the following question.- i. Whether GST is payable on Guitar Head Books purchased from Amazon Inc.-USA (located outside India) in a context where the Guitar Head Books so purchased are not brought into India? 3. Statements of relevant facts having a bearing on the question(s) raised: 3.1 The Applicant is in the business of selling guitar training books in United States of America, United Kingdom & Canada through their Website. Applicant sends soft copy of the book to the printer located in USA, who in-turn prints it and Ships it to the customer located in USA, UK and Canada. Further, in another business model Applicant is having an agreement with Amazon Inc. who through their th....
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....stomers can purchase the course on the website. They will be provided with a User ID and grant access to the course platform. The customer is required to login with the user ID and Password to view the course. The sessions are pre-recorded and require continuous availability of internet to access the course. In case the students need any clarification regarding the content of the course, they can mail the applicant or post a query and get it clarified from the trainer. The applicant desires to obtain advance ruling for the transactions occurring in the business Model "A". 4. Admissibility of the application : The applicant, filed the instant application, on the issues covered under Section 97(2)(e) & 97(2)(g) of the CGST Act 2017 and hence the application is admitted. 5. Applicant's interpretation of law : The applicant submits their interpretation of law which is as under: As mentioned in the above business model 1, Whether GST is payable on Guitar Head Books purchased from Amazon Inc - USA (located outside India) in a context where the Guitar Head Books so purchased are not brought into India? 5.1 As per Section 2(10) of the Integrated Goods and Services Tax Ac....
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....of the Customs Act, 1962, be the aggregate of- (a) the value of the imported article determined under sub-section (1) of section 14 of the Customs Act, 1962(52 of 1962) or the tariff value of such article fixed under sub-section (2) of that section, as the case may be; and. (b) any duty of customs chargeable on that article under section 12 of the Customs Act, 1962 (52 of 1962), and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs, but does not include the tax referred to in sub-section (7) or the cess referred to in sub-section (9). (12) The provisions of the Customs Act, 1962(52 of 1962) and the rules and regulations made there under, including those relating to drawbacks, refunds and exemption from duties shall, so far as may be, apply to the duty or tax or cess, as the case may be, chargeable under this section as they apply in relation to the duties leviable under that Act. 5.5 The relevant provisions of the Customs Act 1962are reproduced below. SECTION 12: Dutiable goods,- i. Except as otherwise provided in this Act, or any other law for ....
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....stoms clearance. After the High sea sale of the goods, the Customs declarations i.e. Bill of Entry etc is filed by the person who buys the goods from the original importer during the said sale. In the past, CBEC has issued various instructions regarding high sea sales appropriating the contract price paid by the last high sea sales buyer into the Customs valuation [Circular No. 32/2004-Cus., dated 11-5-2004 refers]. 3. As mentioned earlier, all inter-state transactions are subject to IGST. High sea sales of imported goods are akin to inter-state transactions. Owing to this, it was presented to the Board as to whether the high sea sales of imported goods would be chargeable to IGST twice i.e. at the time of Customs clearance under sub-section (7) of section 3 of Customs Tariff Act, 1975 and also separately under Section 5 of The Integrated Goods and Services Tax Act, 2017. 4. GST council has deliberated the levy of Integrated Goods and Services Tax on high sea sales in the case of imported goods. The council has decided that IGST on high sea sale (s) transactions of imported goods, whether one or multiple, shall be levied and collected only at the time of importati....
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....efore this authority. FINDINGS & DISCUSSION 7. At the outset we would like to make it clear that the provisions of CGST, Act 2017 and KGST, Act 2017 are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 8 We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made by Sri. Veeresh S Kandgol, C A & Authorized Representative during the personal hearing. We also considered the issues involved, on which advance rulings are sought by the applicant, relevant facts & the applicant's interpretation of law. 9. The applicant, in relation to one of their business models, i.e. model 'A', sought advance ruling in respect of the question mentioned at para 2 supra. In the said model the applicant places the order with Amazon Inc to supply Guitar Head Books. Amazon Inc supplies the Guitar Head Books by billing it to Guitar Head Bangalore and Ships t....