NO NEED OF SEPARATE REGISTERATION AT THE PLACE OF IMPORTATION Under GST: GST AAR Karnataka

Facts

• The applicant is stated to be engaged in import and trading of Gum Rosin and Damar Battuetc & custom clears the said goods from Chennai Sea Port and applicant wishes to supply the same to various states directly from the Customs Sea Port in Chennai.
• While filing the bill of Entry, the applicant furnishes the GSTIN of Bangalore and custom clears these goods, to save the time and the transportation cost, else the dealer would have to bring the goods to Karnataka and then redeliver the goods to states like Andhra Pradesh and Tamil Nadu.

Legal Precedence:
In M/s. Pine Subsidiary Industry vide Order NO. KAR/ADRG/57/2021 Karnataka dated 29-10-2021, ARA had ruled that, “there is no need of taking a separate registration at the place of importation and hence,
Registration of assesse at the place of business is sufficient, thus no need to take GST Registration in Tamil Nadu in the instant case”

Points Put Forth by the Applicant

• Applicant wants to know whether Tax Invoice from Bengaluru office (Registered Place of Business) for imports received at Chennai Sea Port and directly sold to a customer either in Andhra Pradesh, Tamil Nadu, etc., could be raised, or a separate registration is to be obtained at the place of Importation, i.e. Tamil Nadu for the mentioned transactions?
• Secondly, if we do not need separate registration in Tamil Nadu, can we do the transaction using Karnataka GSTIN, if yes, and then in case of issuance of e-way bill, is it correct to mention the GSTIN of Karnataka and the place of dispatch as Chennai Sea Port?

Judgement

The Karnataka AAR ruled that as per the provisions of place of supply of Goods under section 11(a) of IGST Act 2017, “the place of supply of goods imported into India shall be the location of the importer” i.e. Karnataka will be POS in applicant’s case. The applicant is not required to take any separate registration at the place of importation (Tamil Nadu). The applicant can do the transaction using Karnataka GSTIN. In case of issuance of e-way bill, the applicant can mention the GSTIN of Karnataka and the place of dispatch as Chennai Sea Port.

Hrithik Sachdeva, Audit Associate, SW