The Gujarat Authority on Advance Rulings has said that goods and services tax (GST) will be payable on goods sold to an overseas customer shipped directly from an overseas vendor, while the location of the supplier continues to be in India.
The authority has also said that GST is not payable on goods procured from vendor located outside India, where the goods purchased are not brought into India, in an application filed by Sterlite Technologies Limited.
“Applicable GST is payable on goods sold to customer located outside India, where goods are shipped directly from the vendor’s premises (located outside India) to the customer’s premises,” the authority said.
“The transaction is covered under the ambit of Inter-state supply and is neither exempted nor covered under export of services. Thus, the theory of elimination takes us to the conclusion that such supplies will be subject to levy of IGST,” the ruling added.