Page 166 - GSTL_18th June 2020_Vol 37_Part 3

380 GST LAW TIMES [ Vol. 37

2020 (37) G.S.T.L. 380 (A.A.R. - GST - Kar.)
BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
KARNATAKA
Dr. M.P. Ravi Prasad, Member (State Tax) and Shri Mashhoodur Rehman
Farooqui, Member (Central Tax)
IN RE : DOLPHIN DIE CAST (P) LTD.

Advance Ruling No. KAR ADRG 35/2020, dated 20-5-2020
Intra-State supply - Applicant manufactures Steel Die as per require-
ment and specifications given by foreign buyer and using this Die manufac-
ture and export the Aluminium and Zinc Die Castings to the foreign buyer by
retaining the Die with them till the completion of the export order or comple-
tion of Die life - However, applicant raised the tax invoice for this Die imme-
diately after the manufacture in the name of overseas customer in foreign cur-
rency for receipt of payment though the Die not physically moved out of India
to the place outside India - Hence manufacture and supply of die to the foreign
customer does not amount to export as per Section 2(5) of Integrated Goods
and Services Tax Act, 2017 - Accordingly, the said transaction shall be treated
as intra-State transaction as per sub-section (1) of Section 8 of Integrated
Goods and Services Tax Act, 2017 and the applicant has to issue the CGST and
SGST tax invoice to the foreign customer and liable to collect and pay the
CGST and SGST tax - Applicant not eligible to claim said payment as input
tax credit on the invoice raised by him not being the recipient - Further if the
said Steel Die is scrapped at applicant’s end without moving out of the coun-
try, as per the instruction of the overseas customer, applicant has to issue in-
tra/inter-State tax invoice depending upon the nature of the transaction and
collect and pay the applicable tax as per the provisions of the Goods and Ser-
vices Tax Act, 2017, while supplying the die scrap. [paras 18, 20, 22]
IGST - Applicant imports Aluminium casting and pressure Die Cast-
ing component of Aluminium from Thailand where the Thailand supplier first
manufactures Die as per the requirement and specifications given by appli-
cant, retained with them and used for manufacture of Aluminium casting and
pressure Die Casting component of Aluminium to the applicant - Thailand
supplier raised tax invoice in the name of applicant though the Die not physi-
cally imported by applicant - Hence said transaction not amounts to import as
per Section 2(10) of Integrated Goods and Services Tax Act, 2017 - However,
after the completion of the order or Die life if applicant physically imports the
Die from the place outside India to a place in India then the applicant liable to
pay the IGST tax on reverse charge mechanism and claim the IGST tax paid as
input tax credit, if eligible - Further if the Steel Die belonging to applicant if
scrapped at the location of the overseas supplier without die coming to India
then such transaction is occurring outside the taxable territory, i.e., India and
hence not under the purview of GST. [paras 21, 22]
Ruling partly in favour of assessee
REPRESENTED BY : Shri S. Raju, Manager Accounts and Authorised
Representative, for the Assessee.
[Order]. - M/s. Dolphin Die Cast (P) Ltd., No. 266-B, KIADB Industrial
Area, 4th Phase, Bommasandra Jigani Link Road, Bangalure-562106 (hereinafter
GST LAW TIMES  18th June 2020  166