Goods sold before custom clearance

Goods sold before custom clearance| No Separate GSTIN is required in importing state

1. Brief Facts of the Case • The applicant (M/s. Kamdhenu Agrochem Industries LLP) , is engaged in the business of importing chemicals and further resells such chemicals in India. The applicant has a principal place of business in the state of Maharashtra and warehouses in Gujarat and Kerala. • The applicant is registered under GST in all 3 states. • The Applicant intends to sell chemicals in other states also whether he is not registered under GST. • The Applicant received an order from the state of Andhra Pradesh for 300 MT of urea and the Applicant further placed order with foreign exporter.

2. Questions before Hon’ble Authority of Advance Ruling • whether the Applicant is required to obtain the registration in importing States other than Maharashtra, if goods are imported, sold and delivered directly from CFS (Container Freight Station) / DPD (Direct Port Delivery) which is under the Customs Boundaries to customers from those States? • Whether the Applicant is required to obtain registration in the State where the applicant is proposing to open a warehouse for sale of imported goods from such a warehouse? • Whether issuing invoices under Maharashtra GSTIN is permissible in law for supply of imported goods from the proposed warehouse located in the State where the Applicant is not registered under GST?

3. Relevant Legal Extracts • The relevant extract of GST Law, which is applicable in the given case, is reiterated below for ready reference of reader: • Section 22 – Persons liable for registration • “(1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both if his aggregate turnover in a financial year exceeds twenty lakh rupees: • …” • Section7: Inter-State Supply • “(2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce

4. Contention of the Applicant • The Applicant contended that as per Section 22 of CGST Act, the Applicant will be liable to obtain registration in the state from where taxable supply of goods or services is made. • In the given case, even though goods are imported and stored in warehouse of other state, still, the Applicant will be clearing the goods under GSTIN of Maharashtra and the supply of the said goods are commissioned from the office of the applicant in the State of Maharashtra. • The Applicant also relied on following precedences wherein it was held that GST registration is not required in the state from where imported goods are sold: • Aarel Import Export Pvt. Ltd – GST ARA No. 114/2018-19 dated 24.04.2019. • Gandhaar Oil Refinery (India) Ltd – GST ARA No. 112/2018-19 dated 15.04.2019

Goods sold before custom clearance