GST Some Aspects, GST Overview CAknowledge.com

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Manufacturers
Traders
Service Traders

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IN
GST
Some aspects
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CTP

• Section 2(20) CTP
• A person who occasionally
• undertakes transactions involving supply of G/S/B
  in the course or furtherance of business,
• whether as principal, agent or in any other
  capacity,
• in a State or a Union territory
• where he has
• no fixed
• place of business

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PoB

• Section 2(85) PoB includes
• a place from where the business is ordinarily
  carried on, and includes
• a warehouse,
• a godown or
• any other place
• where a taxable person
• stores his goods,
• supplies or receives G/S/B or
• (b) a place where a taxable person maintains his
  books of account or
• (c) a place where a taxable person is engaged in
  business through an
• agent, by whatever name called.

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NRTP

• Section 2(77) NRTP
• Any person who occasionally undertakes
  transactions
• involving supply of G/S/B,
• whether as principal or agent or in any other
  capacity,
• but who has
• no fixed PoB or
• residence in India.

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Case Study Event
Shiamik Davar Ent Ltd.
E Pvt Ltd.
Music band from Brazil
Organises music concert at Bangalore

• Artists from
• Mumbai
• Chennai

Event Manager, Singapore
Mumbai

• Admission passes issued
• Online
• Physically at various locations

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Overseas
Supply
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Section 7(5) of the IGST Act
Section 7(5) - Supply of goods or services or
both (a) when the supplier is located in India
and the PoS is outside India
(b) .
(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.
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Few case studies
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Case Study - Import clearance from a state where
not registered
Mumbai
N Inc Netherlands
Goods land at Mumbai Port/Airport/ICD
A LLP, asks a freight forwarder to ship the goods
to Chennai, the customer of A LLP.
PO for goods
A LLP, Bangalore
C Ltd. Chennai
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Case Study - Bill to outside India, Shipping in
India, supplier in India and goods in India
K Karnataka
A LLP, Mumbai
Supply goods
A LLP has to raise tax Invoice on M of Malaysia
but ship the goods to K of Karnataka.
M Malaysia
PO for goods
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Case Study - Bill to in India, Shipping outside
India, supplier and goods in India
M Malaysia
A LLP, Mumbai
Supply goods
K Karnataka
PO for goods
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Merchant trade
GST
Pre-GST
Purchases goods, directs to deliver to C
Purchases goods, directs to deliver to C
No Tax to be paid
Delivers goods
Delivers Goods
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Section 7(2) of IGST Act
Supply of

• goods imported

Section 2 (4) Customs frontiers of India means
the limits of a customs area as defined in
section 2 of the Customs Act, 1962

• into the territory of India,

• till they cross the customs frontiers of India,

in the course of

• shall be treated to be a supply of goods
  inter-State
  trade or commerce.

Section 2(10) - Import of goods with its
grammatical variations and cognate expressions,
means bringing goods into India from a place
outside India
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• Section 2(11) - Customs area means
• the area of a customs station or
• a warehouse and
• includes any area
• in which
• imported goods or export goods
• are ordinarily kept before clearance by Customs
  Authorities

Section 2(25) - Imported goods means any goods
brought into India from a place outside India but
does not include goods which have been cleared
for home consumption.
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High Sea Sales
Subject Liveability of IGST on HSS of Imported
goods and point of collection thereof
Circular No. 33/2017-Cus
Circular No. 46/2017-Cus
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Customs Act Finance Bill 2018
(1) ... (2) It extends to the whole of India
and, save as otherwise provided in this Act, it
applies also to any offence or contravention
thereunder committed outside India by any
person. (3) .
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Customs Act Finance Bill 2018
Section 3(8A) of the CTA

• Sale of goods from Customs Bond, value for
  charging IGST, shall be higher of the following
• Customs value including BCD and other taxes or
• Last transaction value of the goods.

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Sale in the course of Imports

• A Ltd., a registered entity in Bengal. Raises a
  PO on B Ltd., New Zealand for supply of goods.

• Case A.
• Goods are sold through transfer of documents
  before the vessel entered the EEZ.

• Case B.
• Goods are sold anytime by endorsement of
  documents after the vessel entered EEZ but before
  first clearance by the Customs.

• Case C.
• Goods sold while lying in the customs bonded
  warehouse.

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Local sale from Bond

• Goods purchased from US by an importer at
  Kolkata.
• Goods were kept in the customs warehouse, Mumbai.
• Goods were supplied directly to a party located
  in Gujarat.

• Goods were supplied to a party located in
  Singapore.