Separate GST registration not required for selling goods directly from port of import before clearing it for home consumption

In M/s Kamdhenu Agrochem Industries LLP [GST-ARA-112/2019-20/B-87 dated February 24, 2020], Hon'ble Maharashtra Authority for Advance Ruling ("MAAR") held that in a case where imported goods are sold and delivered directly from Container Freight Station ("CFS") / Direct Port Delivery ("DPD") to a state different from the state where assessee is registered, the assessee need not take a separate registration in that state.

M/s Kamdhenu Agrochem Industries LLP ("the Applicant") has sought an advance ruling on, whether the Applicant registered in Maharashtra is required to take registration in importing states other than Maharashtra, if goods are imported, sold and delivered directly from CFS / DPD which is under the Custom boundaries to customers from those states, as per Section 22 of the Central Goods and Services Tax Act, 2017 ("CGST Act").

MAAR observed that, the above mentioned question pertains to situation where imported goods are sold by the Applicant before the Bill of Entry ("BOE") is filed or before the goods are cleared for home consumption on payment of Custom Duty and Integrated Goods and Services Tax ("IGST") as per Section 7(2) of the IGST Act, 2017 ("IGST Act") and Section 12 of the Customs Act, 1962.

It is an established fact that, as per Section 11(a) of IGST Act, in respect of goods imported the place of supply ("POS") is location of the importer and not the place of the delivery of goods.

Held that, as the Applicant is registered in Mumbai the POS will be Maharashtra and further observed that as the Applicant is selling goods to M/s. Greenpanel Industries Ltd, having an establishment in state of Andhra Pradesh, before clearing the same for home consumption from the port of import, the POS will be the place from where the Applicant makes a taxable supply of goods which in present case will be Maharashtra.

Held that, the Applicant need not take a separate registration and can supply the goods on the basis of invoice issued by Maharashtra Office.

Our Comments

AAR, Maharashtra in the matter of M/s Sonkamal Enterprises Private Limited [Advance Ruling No. GST AAR-48/2018-19/B-123, dated September 27, 2018] took a similar view that since the Applicant has no establishment or place of operation or any godown or GST registration in the state of West Bengal, i.e. the port of import, the applicant can clear the goods on the basis of invoice issued by the Mumbai head office and therefore need not take separate registration in the state of West Bengal.

Similarly, AAR Maharashtra in the matter of M/s. Aarel Import Export Pvt. Ltd. [Advance Ruling No. GST AAR-114/2018-19/B-42, April 24, 2019] held that as per Section 11(a) of the IGST Act when goods are imported into Odisha, the POS of goods shall be the location of the importer, i.e. Mumbai, Maharashtra and further held that the Applicant need not take any separate registration in Odisha to facilitate the taxable supply of goods through Mumbai head office.

In our view, relying on the decision of various precedents, it can be construed that the importer, registered in a state different from the state of import of goods need not take separate registration in that state and can supply the goods on the basis of invoice issued by the head office located in the state of registration.