I. AUTHORITY FOR ADVANCE RULING (AAR)
40. [2019] (27) GSTL 54 (A.A.R. – GST) Borbheta
Estate Pvt. Ltd. Date of order: 27th
June, 2019;
Supply of services of renting of dwelling unit for residence purpose
whether given to individuals or to a company would not attract tax
FACTS
An applicant was inter
alia renting dwelling units. One of the flats was let out to M/s Larsen
& Turbo Ltd. in the housing complex named South City. The applicant argued
that he was not liable to pay tax on the renting services as it was for
residential purpose and exempt as per Notification No. 12/2017-C. T(Rate). The
Department stated that the exemption was not available since the residential
dwelling unit is rented to a commercial entity like M/s Larsen & Toubro
Ltd. But from the observation by the Authority it appeared that it was meant
for residential accommodation for the employees of the company and South City
Apartment Owners’ Association also certified that the applicant owns the flat and
it is a residential flat which cannot be used for any purpose other than
residential.
HELD
It was held that whether renting of dwelling unit
for residence purpose was given to individuals or to a company, it is covered
under exemption notification and thus supply of such services does not attract
tax.
41. [2019] 106 taxmann.com 292 (AAR –
Maharashtra) Aarel Import-Export (P) Ltd., In re. Date of order: 24th
April, 2019;
The imported goods can be cleared in the name of GST registration
located in different state and even in case of ex-warehouse sale of such
imported goods to customers located in the state where imported goods are
stored; there is no need to obtain separate registration in that state
FACTS
The applicant, a company having its head office in
Mumbai, and registered under the GST Act in the state of Maharashtra, is an
importer and exporter / trader of products, etc. The applicant wishes to import
coke from Indonesia at Paradip Port in the state of Odisha. They will be
storing goods at rented customs warehouse (ex-bond) at Paradip Port. They do
not have any place of business / establishment or place of operation in Odisha.
Therefore, they will clear the goods from that warehouse in the name of their Mumbai
office using the Maharashtra GSTIN. The importation will be completed on
payment of custom duties, if any, and IGST in the name of the Mumbai office.
The applicant wishes to sell the goods directly
from Paradip Port warehouse (ex-bond) to the customers in Odisha and
accordingly charge IGST to their customers by raising bills from their Mumbai
office and not from Odisha. The applicant does not have any facility in Odisha
other than the Paradip Port customs warehouse. In this background, the applicant
raised a question as to whether they are required to obtain registration in
Odisha and whether they can supply the goods from custom warehouses there by
raising invoices in the name of their Mumbai office.
HELD
The AAR found that in respect of goods imported
into India, as per provisions of section 11(a) of the IGST Act, 2017 the place
of supply shall be the location of the importer. In the present case since the
importer is registered in Mumbai, the place of supply will be Mumbai,
Maharashtra. Since the applicant has no establishment or place of operation or
any godown or GSTIN in the state of Odisha, Paradip Port, i.e., the port of
import, the place of supply shall be the place from where the applicant makes a
taxable supply of goods which, in this case is the Mumbai head office.
Accordingly, AAR held that the applicant can clear the goods on the basis of
invoices issued by the Mumbai office and need not take separate registration in
Odisha.
As regards the second
question, AAR held that since as an importer the place of supply for the
applicant will be Mumbai, and the goods also will be cleared in the name of the
Mumbai registered address while paying IGST at the time of customs clearance,
it would follow that they can do further transactions mentioning the GSTIN of
their Mumbai office. As a corollary, they can do the transaction on the Mumbai
office GSTIN and can mention that GSTIN in the E-way Bill and the dispatch
place as the customs warehouse, Odisha, Paradip Port. AAR also relied upon its
own decision in the case of Sonkamal Enterprises (P) Ltd. in re
(2018) 100 taxmann.com 213 (AAR-Maharashtra) in this matter.
