Manufacturers Traders Service Traders + Zoom IN GST Some aspects

CTP place of business 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

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.

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.

Organises music concert at Bangalore 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

Overseas Supply

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.

Few case studies

Case Study - Import clearance from a state where not registered N Inc Netherlands Mumbai 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

A LLP, Mumbai K Karnataka Supply goods Case Study - Bill to outside India, Shipping in India, supplier in India and goods in India A LLP, Mumbai K Karnataka 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

A LLP, Mumbai M Malaysia Supply goods K Karnataka PO for goods Case Study - Bill to in India, Shipping outside India, supplier and goods in India A LLP, Mumbai M Malaysia Supply goods K Karnataka PO for goods

Pre-GST GST No Tax to be paid Merchant trade Pre-GST GST A, Delhi A, Delhi Seller B, New Zealand Seller B, New Zealand Purchases goods, directs to deliver to C Purchases goods, directs to deliver to C No Tax to be paid Delivers Goods Delivers goods Buyer C, Thailand Buyer C, Thailand

Section 7(2) of IGST Act in the course of 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, shall be treated to be a supply of goods inter-State trade or commerce. in the course of Section 2(10) - Import of goods with its grammatical variations and cognate expressions, means bringing goods into India from a place outside India Section 2 (56) “India” means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its territory and territorial waters

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.

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

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) …………. Corresponding power to enter in TIEA under section 151B

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.

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.

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.