Levy of GST — High Sea sale—In the instant case, applicant is seeking an advance ruling in respect of the following ISSUE—
1) Whether the applicant is liable to pay GST on the supply of goods located outside India to customers within India without physically bringing the goods to India?
2) Whether the out & out supplies in the facts of the present case Will be considered as export supplies or exempted supplies for the purpose of the GST?
Held that— we find that the applicant would be purchasing goods from M/s. Innospec on the basis of purchase orders received from their customer in India and the said goods would be delivered by M/s. Innospec from outside India to the ship/ vessel of the customer which is also outside India (non-taxable territory) i.e. Singapore. The order received by the applicant from their customers in India and order placed by them on.
Thus it is very clear that the goods are delivered by M/s. Innospec from a place situated outside the taxable territory of India to their customer's vessel which is also located outside the taxable territory of India. Thus we find that the transaction is similar to the selling of goods on High Seas Sale basis since in both the cases the goods purchased do not cross the customs frontiers of India.
there is no doubt that the goods of the applicant would be imported goods if they are brought from outside the country into India and it is clear that when the said goods are delivered/supplied from a place outside India to a place outside India, these goods have not crossed the customs frontiers of India Thus clearly the transaction in these goods are in the nature of inter-state supply as per Section 7(2) of the IGST Act.
Thus as per Section 7(2) of the IGST Act and proviso to Section 5(1) of the IGST Act it is very clear that in respect of import goods there is no levy and collection except in accordance with the provisions of Section 12 of the Customs Act, 1962 and Section 3 of the Customs Tariff Act, 1975. Section 12 of the Customs Act, 1962 provides that custom duties which include integrated tax in respect of imported goods would be levied only at the time of import or export of goods.
Thus in case of goods supplied on an out an out basis as is in the present case, there is no levy till the time of their customs clearance in compliance with Section 12 of the Customs Act and Section 3 of the Customs Tariff Act. In view of this the import goods sold from and to a non-taxable territory, though they are clearly in the nature of inter-state supply would come in the category of “exempt supply” as no duty is leviable on them except in accordance with proviso to Section 5(1) of the IGST Act.
The applicant is not liable to pay GST on the supply of goods located outside India to customers within India without physically bringing the goods to India.
The supplies in the present case would be “non-taxable supply” as per Section 2(78) of the CGST Act, 2017 which means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services tax Act. — Enmarol Petroleum India Pvt. Ltd., In Re..  5 TAXLOK.COM 042 (AAR-Maharashtra)