Page 90 - GSTL_16th July 2020_Vol. 38_Part 3

328 GST LAW TIMES [ Vol. 38
(3) Subject to the provisions of Section 12, supply of services, where the
location of the supplier and the place of supply are in -
(a) two different States;
(b) two different Union territories; or
(c) a State and a Union territory, shall be treated as a supply of
services in the course of inter-State trade or commerce.
(4) Supply of services imported into the territory of India shall be treated
to be a supply of services in the course of inter-State trade or commerce.
(5) Supply of goods or services or both, -
(a) when the supplier is located in India and the place of supply is
outside India;
(b) to or by a Special Economic Zone developer or a Special Eco-
nomic Zone unit; or
(c) in the taxable territory, not being an intra-State supply and not
covered elsewhere in this section,
shall be treated to be a supply of goods or services or both in the course of
inter-State trade or commerce.
14.2 The above statute indicates that in the event that the supplier is lo-
cated in India and the place of supply is outside India, such supplies shall be
treated as inter-State supplies. The place of supply in the instant case would be
governed by the provisions of Section 10 of the IGST Act, 2017 of which the rele-
vant text reads as under :
10. (1) The place of supply of goods, other than supply of goods imported
into, or exported from India, shall be as under, -
(a) where the supply involves movement of goods, whether by the
supplier or the recipient or by any other person, the place of supply
of such goods shall be the location of the goods at the time at which
the movement of goods terminates for delivery to the recipient
In the instant case, it is an undisputed fact that the supply involves movement of
goods and therefore the place of supply would be the termination for delivery to
the recipient. The goods under consideration are supplied to overseas buyers as
declared by the applicant and as such the place of supply will be a place outside
India. Further, the supplier is the applicant who has declared the principal place
of business within India and issues the invoices for sale of such goods.
14.3 The above indicates that the supplier is located in India and the
place of supply is outside India and as such the same would be inter-State supply
in terms of the provisions of Section 7(5) of IGST Act, 2017. Thus, it is very clear
that the transaction undertaken by the applicant tantamount to supply and is an
inter-State supply. Having travelled thus far, it is obvious that IGST will be levi-
able unless the goods are exempted or are zero-rated supplies which have been
defined as export of goods or services in terms of the provisions of Section 16 of
the IGST Act, 2017. In the instant case the applicant has not stated the nature of
goods and has not declared that such goods are exempted under any notification
issued under the powers of Section 11 of the CGST Act, 2017 and the correspond-
ing State Act or Section 6 of the IGST Act. Thus, the only possibility of goods not
subject to levy of IGST would be the circumstances where the goods are export-
ed.
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