Exemption from GST — Authority for Advance Ruling — Export – The applicant imports cosmetics, toiletries food products like confectioneries and cigarettes etc,. The Foreign manufacturers maintain stores in SEZ units and the same are being supplied to bonded ware house or duty free ship store supplier. The applicant had earlier filed an application before this authority seeking Advance Ruling as to (i) whether they are exempted from tax under GST on their outward supplies made to ocean going merchant vessels on foreign run, Indian Naval Ships and Indian Coast Guard Ships or not (ii) if at all they are liable for GST on their outward supplies whether they can collect the GST from the recipient for the goods i.e Ocean going merchant vessels on foreign, Indian Naval Ships, Indian Coast Guard Ships. The AAR has ruled out that (i) the applicant are not exempted from tax under GST on their outward supplies (ii) the applicant can collect the applicable GST from their customers, in case it is not exports. However, in case of exports the option lies with the applicant based on manner of exports. Aggrieved by the order, the applicant filed an appeal before Appellate Authority, for deciding as to whether their transaction falls under ‘export’ or not. The Appellate Authority directed the AAR to decide whether the transactions are export (zero rated) or not afresh.
Held that:- The Hon’ble Authority for Advance Ruling held that the outward supplies made by the applicant to (i) ocean going merchant ships which are in foreign run, (ii) Indian Navy ships, (iii) Indian Coast guard ships, will be treated as ‘exports’.Fairmacs Shipstores Private Limited [2018] 3 TAXLOK.COM 74 (AAR-AP)