Page 85 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : STERLITE TECHNOLOGIES LTD. 323

2020 (38) G.S.T.L. 323 (A.A.R. - GST - Guj.)
BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
GUJARAT
S/Shri Sanjay Saxena and Mohit Agrawal, Members
IN RE : STERLITE TECHNOLOGIES LTD.
Advance Ruling No. GUJ/GAAR/R/04/2020, dated 17-3-2020
in Application No. Advance Ruling/SGST&CGST/2018/AR/31
Merchant Trade transaction - Movement of goods from one country to
another - Transaction by India based trader - Taxability under GST - Goods
would be directly shipped by vendor outside India to customer located outside
India; payment would be made in foreign currency to vendor and applicant
would receive foreign currency from customer - Goods liable to duty only
when they are imported into India and IGST payable at the time of importa-
tion of goods into India - Accordingly, GST not payable in respect of goods
procured from vendor located outside India, where the goods so purchased not
brought into India and where, Bill of Entry/import declarations are not being
filed with respect to goods so procured - Section 2(10) of Integrated Goods and
Services Tax Act, 2017 - Section 3 of Customs Tariff Act, 1975 - Sections 12 and
15 of Customs Act, 1962. [paras 11, 13, 13.1]
Merchant Trade transaction - Outward supply from place of vendor to
customer - Taxability under GST - Applicant selling goods for a consideration
in the course or furtherance of business - Goods supplied to overseas buyers as
declared by the applicant and as such place of supply outside India - Further,
supplier, i.e., applicant declared the principal place of business within India
and issues the invoices for sale of such goods and as such the transaction tan-
tamount to ‘ inter-State supply’ under Section 7(5) of Central Goods and Ser-
vices Tax Act, 2017 - Goods not physically available in Indian territory, hence
neither exempted nor covered under export of services - Applicable GST pay-
able on goods sold to customer located outside India, where goods shipped
directly from vendor’s premises (located outside India) to the customer’s prem-
ises. [paras 14, 14.2, 14.4, 14.5]
Ruling partly in favour of assessee
CASE CITED
Synthite Industries Ltd. — 2018 (12) G.S.T.L. 395 (A.A.R. - GST) — Referred ................................ [Para 12]
DEPARTMENTAL CLARIFICATION CITED
C.B.E. & C. Circular No. 33/2017-Cus., dated 1-8-2017 .......................................................... [Paras 13, 13.1]
REPRESENTED BY : Shri Nitin Shah, Advocate, for the Assessee.
[Order]. - Brief Facts of the case : M/s. Sterlite Technologies Limited, a
company, Block 6, Magnet Corporate Park, Nr. Sola Flyover, Thaltej, Ahmedabad
(hereinafter called the applicant) is a registered person under GST having GST
Number -24AAECS8719B1ZI.
2. They are engaged in the Development and supply of software with
respect to telecommunication qua wi fi service management platform. OSS/BSS
alongside packet core with flexibility of modular and pre-integrated offerings etc.
and trading in hardware. They procure requisite hardware from the vendor lo-

GST LAW TIMES  16th July 2020  85