Levy of GST-Goods sold on high seas sale basis-Taxability.
BASF India Ltd., In re
Decision: In assessee’s favour./p>
Levy of GST-Goods sold on high seas sale basis-Taxability
Facts:
In case of goods sold on high seas sale basis there is no levy till time of their customs clearance in compliance with section 12 of Customs Act and section 3 of Customs Tariff Act. In view of this import goods sold on high seas sale basis, though they are clearly in nature of inter-state supply would come in category of ‘exempt supply’ as no duty is leiviable on them except in accordance with proviso to section 5(1) of IGST Act.
Held:
Thus, goods which are sold on high seas sale basis are non-taxable supply as no tax is leviable on them till time of customs clearance in accordance with and compliance of section 12 of Customs Act, 1962 and section 3 of Customs Tariff Act, 1975. The AAR also observed that goods sold on high seas sale basis being non-taxable supply as per section 2(78) of CGST Act and being exempt supply as per section 2(47) of CGST Act, input tax credit to extent of inputs, input services and common input services would be required to be reversed by applicant as per section 17 of CGST Act.
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