The Authority of Advance Ruling (AAR), Goa, has held that all kinds of supply of goods or services 
Get to know GST provisions and rules on the free supply of goods. Also, we have included rules regarding ITC reversal on free supplies of goods and services made on the behalf of a registered person from another state to a place in the home state will be considered as “Interstate Trade”. The authority said that tax and commerce on such transactions will be charged accordingly.
The ruling was issued by the AAR during the hearing of an issue raised by the applicant High Tech Refrigeration, and Air Conditioning Industries, a Goa-based migrated assessee, engaged in the business of supplying goods and services related to Air conditioning machines, electronic integrated circuits, and work contracts for maintenance and repair services. The applicant sought the ruling of the AAR on the issue that whether the supply made by the applicant for the goods and services 
Have a look on goods and services that are not eligible to claim (ITC) input tax credit. We have showcased complete list with their brief exceptions. Read more, on behalf of a third party, who works outside the taxable territory of Goa, are to be considered as interstate or intrastate supply.
The bench of AAR, with J.K. Meena and Sarita S. Gadgil as the members, held that all kinds of supply of goods or services made on the behalf of a registered person from another state to a place in the home state will be considered as “Interstate Trade”, and tax and commerce on such transactions should be charged accordingly.
The ruling read, “The applicant High Tech Refrigeration & Air conditioning Industries is a registered proprietorship firm dealing in the supply of goods as well as provides services. Ongoing through the submissions made by the applicant, this authority is of the view that issues raised by the applicant are not covered by section 97(2) of the GST Act on which Advance Ruling can be sought. Only one issue could be dealt with by this authority for issuing Ruling and that is whether supply made by applicant from Goa on behalf of the third person who is not in the taxable territory of Goa to a place in Goa is to be taxed as Interstate Supply or Intra State Supply. For classification of any supply as Interstate Supply or Intra State Supply, two ingredients are relied upon and these are the location of the supplier and place of supply. In the instant case, as said by the applicant, location of the supplier is Goa, place of supply will be outside Goa as per section 10(1)(b) of the IGST Act since goods are supplied on behalf of a registered person outside Goa to a place in Goa.”
