Supply of goods from one non­taxable territory to another without entering into India is no supply

THE AUTHORITY FOR ADVANCE RULINGS
IN KARNATAKA

The Question and Ruling as follows :

i. Whether the supply of books from the warehouse located in USA (non­ taxable territory) to the customers located in USA, UK and Canada (non­taxable territory) without such books entering into India by the applicant are treated as supply under GST?

ii. Whether GST is levied on the shipping charges collected by the applicant from the customers located in USA, UK and Canada (non-taxable territory) for the delivery of books from the warehouse located in USA (non-taxable territory) to the customer located in USA, UK and Canada (non-taxable territory)?

iii. Whether printing charges for printing of books charged by the Printer located in USA (non-taxable territory) is taxable under Reverse Charge Mechanism under GST, where only content is supplied by the applicant?

iv. Whether the services received by the applicant from Foreign service provider such as warehousing of printed books located in USA (non-taxable territory) is taxable under Reverse Charge Mechanism under GST?

v. Whether input tax credit can be availed, to the extent of inputs and input service on the transaction covered in Question 1 above?

RULING

i. The supply of books from the warehouse located in USA (non-taxable) territory) to the customers located in USA, UK and Canada (non-taxable territory) without such books entering into India by the applicant does not amount to supply under GST.

ii. The shipping charges collected by the applicant from the customers located in USA, UK and Canada (non-taxable territory) for the delivery of books from the warehouse located in USA (non-taxable territory) to the customer located in USA, UK and Canada (non-taxable territory) are not exigible to GST.

iii. The printing charges, for printing of books, charged by the printer located in USA (non-taxable territory) are taxable under Reverse Charge Mechanism under GST, where only content is supplied by the applicant.

iv. The services received by the applicant from foreign service provider such as warehousing of printed books located in USA (non-taxable territory) is not taxable under Reverse Charge Mechanism under GST.

v. The input tax credit can’t be availed, to the extent of inputs and input service on the transaction covered in first question as the said transaction does not amount to supply under GST.