TaxTMI 
TaxTMI 
2024 (6) TMI 31
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....sion of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as an Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s. DCW Limited, No. 45, Sahupuram, Arumuganeri, Kayalpattinam. North Village, Thoothukudi, Tamil Nadu - 628 229 (hereinafter called as 'the Applicant') is engaged in the manufacture of chemical products like 'Caustic Soda', PVC resin etc. They are registered under GST with GSTIN: 33AAACD0559N1ZN. They have filed an application seeking Advance Ruling on the following: 1. Whether the exporter (M/s. DCW Ltd) is liable to pay GST on the export freight as CGST & SGST, or as IGST. 2. Whether the shipping line who accepts the goods from the exporter (M/s. DCW Ltd) is liable to pay GST as CGST & ....
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....gal & Indirect Taxation), who is the Authorized Representative of the Applicant appeared for the hearing in virtual mode and he reiterated the submissions made in their application. He explained that M/s. DCW Ltd. are engaged in the manufacture of around 13 different chemical products like 'Caustic Soda', PVC resin etc., and that they export around Rs. 250 crores of their goods, annually. He explained in brief about the nature of queries raised and stated further that the queries raised in the instant case pertain basically to exports made by them on CIF basis. 8.2 To a specific query raised by the members as to whether the shipping line that they engage in general for export of their goods, are foreign based, or, are operating from India, he explained that a shipping liner having an office at Thoothukudi is being engaged normally for such export of goods. Since the Statement containing the applicant's interpretation of law and / or facts as in SI. No. 16 of the Application filed for advance ruling, did not contain the relevant discussion / interpretation of the applicant, the members insisted that the same be furnished, so as to enable them to process the applicatio....
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....into, or exported from India. Section 11 - Place of supply of goods imported into, or exported from India. Section 12 - Place of supply of sendees where location of supplier and recipient is in India Section 13 - Place of supply of services where location of supplier or location of recipient is outside India Section 14 - Special provision for payment of tax by a supplier of online information and database access or retrieval services. As could be seen from the above, Sections 10 and 11 discusses about the place of supply of 'goods', and Section 14 discussed about 'Online information and database access or retrieval service'. As the issue in the instant case revolves predominantly around the service involving 'export freight', Section 12 and 13 which discusses about the place of supply of 'services', are found to be applicable in this case. 9.4 At the outset, as one may be aware SI. No. 20 of the Exemption Notification No. 9/2017-Integrated Tax (Rate) dated 28.06.2017 provided for exemption on services relating to "Services by way of transportation of goods by an aircraft from a place outside India upto the cu....
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....t, is outside India', states in sub-section 9 to Section 13, as follows :- "(9) The place of supply of services of transportation of goods, other than by way of mail of courier, shall be the place of destination of such goods." 9.7 However, it is to be noted that from 1.10.2023 onwards, the omission of both the aforesaid provisions, i.e., proviso to Section 12 (8) of the IGST Act, 2017, and Section 13 (9) of the Act, ibid, proposed under Sections 161 and 162 respectively of the Finance Act, 2023 (No. 8 of 2023), takes effect, by way of Notification No. 28/2023-Central Tax dated 31.07.2023. That is to say that from 1.10.2023 onwards, with the omission of Section 13 (9), the 'place of supply' under Section 13 (where location of supplier or location of recipient is outside India) gets fixed by default as the location of the recipient of service', vide Section 13 (2) of IGST Act, which states as "(2) The place of supply of services except the services specified in sub-sections (3) to (13) shall be the location of the recipient of services'. Likewise, Section 12 (8) of the IGST Act, 2017, now (from 1.10.2023) operates without the proviso, whic....
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.... to the shipping line / freight forwarder. • That the shipping line / freight forwarder has an office in Thoothukudi, Tamilnadu. • That the shipping line / freight forwarder is to be construed as a registered entity, as they are collecting GST from the applicant. 9.10 It is clear from the above that the instant case relates to chargeability and the nature of tax on outbound ocean freight in respect of the exports undertaken by the applicant on CIF basis, where a shipping line/freight forwarder who has an office in Thoothukudi carries out the activities relating to transportation of goods by vessel. It may be noted that once the sunset clause on ocean/air freight provided under Notification No. 07/2021-Integrated Tax (Rate) dated 30.09.2021 was not extended beyond 30.09.2022, such activities under specific circumstances became liable to tax under GST from 1.10.2022 onwards. However, the nature of tax to be charged hinged on the 'place of supply' as 'the place of destination of such goods' that existed under the then extant provisions, viz., 'proviso to Section 12 (8)' and Section 13 (9) of the IGST Act, 2017. Accordingly, taxes un....