Telangana AAR: Pay IGST & Claim GST ITC on Intra & Inter-State Sales

The Telangana Authority of Advance Ruling (AAR) has the members B. Raghu Kiran and S.V. Kasi Visweswara Rao have headed that IGST paid on imports is qualified to be claimed as an ITC towards intra-state and inter-state sales.

The applicant, M/s. Euroflex Transmissions (India) Private Limited wants to furnish the imported goods from the port of importation to customers situated in India, instead of drawing the same goods to the applicant’s enrolled premises in the state of Telangana and providing a tax invoice from the Telangana location. 

The petitioner seeks an advance ruling on the issue of whether the petitioner is needed to take the enrollment in the state where the goods are imported when the mentioned goods are sold from the port of the importation to the customers located in various states in India. 

The additional issue was that do the applicant is qualified to claim the ITC of the IGST furnished on the goods imported when the mentioned goods are sold from the port of importation to the customers located in various states in India without bringing such goods into Telangana.

AAR sees that transactions made by the petitioner after clearing the goods from the customers in their own account are next sales and not the sales for import, in which the customs clearance would be generated by the buyer, where the transactions would come beneath Entry 8 of Schedule III to the CGST Act, 2017. The next sale is made to the customer in the state of Telangana and is an intra-state sale responsible to CGST and SGST, and these sales are driven to the customers in the other states of the country, then the same would be an inter-state sale levied to IGST. as a taxable sale, the individual who makes the same taxable sales is subjected to enroll beneath the CGST act 2017. The same would be seen that the petitioner who has taken an enrollment. Thus the enrollment is enough to cover the transactions or kind of supplies that the applicant has elaborated. 

The applicant mentioned that beneath section 16 of the CGST act 2017 read with section 20 of the IGST Act, the IGST furnished on the imports is qualified as an ITC both on the intra-state and the inter-state sales.