Case- Aarel Import Export Private Limited

State: Maharashtra
Questions on which Advance Ruling is sought:

• Whether the procedure to raise the invoice from Mumbai Office for imports received at Paradip Port, Odisha, where we do not have any separate GST Registration and Charge IGST from Mumbai to our Customers, is correct? Or do we have to take separate registration in the State of Odisha for the below-mentioned transactions?
• If we do not need separate registration in Odisha, can we do the transaction on Mumbai Office GSTIN, then in case of issuance of e-way bill is it correct to Mention the GSTIN of Mumbai and Dispatch place as Paradip Port?
• Based on the facts of the cases the following observations are made:-

As per sec 11(a) of the IGST act –
The place of supply of goods,

Imported into India shall be the location of the importer;
as per sec 22(1) of the CGST act-

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 [2(6)] in a financial year exceeds twenty lakh rupees:

• Response by the AAR:-
• In the instant case applicant makes taxable supply of the goods from his Head office in Mumbai
  as he does not have a separate establishment or office in Odisha as per the application
• Hence the place where the registered person makes the taxable supply of goods shall be the location of the supplier i.e. Mumbai.
• Since the applicant does not have a go down at Odisha either, separate registration need not be taken in Odisha.
• The contention to transact business from the Mumbai office GSTIN in case of issuance of e-way bill is correct as long as applicable IGST or CGST+SGST payable on the same is paid.
• Conclusion
• In conclusion answers to both the questions are in the affirmative.

The facts of the case are similar to the advance rulings in case of Sonkamal Enterprises Private Limited (applicant)

Who are importers of chemicals which are currently imported at JNPT port, Maharashtra and Kandla port, Gujarat, and accordingly, are registered under the GST Act in both the states. They wish to carry out the following:

Import chemicals at Haldia Port (Kolkata, West Bengal) in the absence of any operation in the state of West Bengal, the applicant rented a custom warehouse at Haldia Port It proposes to clear the goods from such rented warehouse (ex-bond) in the name of its registered Mumbai head office and sell the goods to customers in West Bengal and other nearby states

In light of the above facts, the applicant had filed an application to seek an advance ruling on the following:

Whether separate registration would be required in the state of import, i.e. state of West Bengal
If no, can the applicant do a transaction on its Mumbai GSTIN number, in which case for issuance of the e-way bill is it correct to mention the GSTIN of Mumbai and dispatch place of Haldia port?

• By virtue of section 11 of the Integrated Goods and Services Tax Act, 2017, the place of supply in case of imported goods shall be the location of the importer, in the instant case since the importer is registered in Mumbai, the place of supply shall be Mumbai, Maharashtra.
• Further by virtue of section 22 of the Central Goods and Services Tax Act, 2017, the person liable to register shall be the location from where such person makes a taxable supply of goods or services or both.
• In the instant case, since the applicant has no establishment or place of operation or any godown or GSTIN in the state of West Bengal, i.e. the port of import, the applicant can clear the goods on the basis of the invoice issued by the Mumbai head office and therefore they need not take separate registration in the state of West Bengal.

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