Taxability of Merchant Export sales in GST - AAR

Dear Readers,

Recently Ahmedabad AAR in the case of M/s Sterlite Technologies Ltd has promulgated that the GST is not payable on goods procured from vendor outside India and sold outside India as goods so purchased are not brought into India. However GST is payable on goods sold to customer located outside India where goods are shipped directly from the premises of the vendor (located outside India to the customer's premises. Further Authority in this ruling has held that since the goods sold to customer are not physically available in the Indian territory as such question of export of goods doesn't arises in this case and it will be considered as inter state supply of goods.

Contrary to the above ruling, Kerala AAR in the case of M/s Synthite Industries Ltd. has held that "goods are liable to GST when they are imported into India and the IGST is payable at the time of importation of goods into India; The applicant is neither liable to GST on the sale of goods procured from China and directly supplied to USA nor on the sale of goods stored in the warehouse in Netherlands, after being procured from China, to customers, in and around Netherlands as the goods are not imported into India at any point."

Download copy of Ahmedabad AAR from the link given below:

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