‘Goods bought, sold abroad liable to GST’

New Delhi, June 18

A domestic company buying goods from abroad and selling to another country will have to pay GST on such transactions even if the said products are not entering the Indian territory, the Authority for Advance Ruling (AAR) has said.

On an application filed by Sterlite Technologies, the Gujarat Bench of AAR has ruled that 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 applicant had sought to know whether the GST would be levied on merchant trade transactions (MTT).

The ruling means GST would be levied on MTT where applicant will receive an order from the customer located outside India and as per their instruction, the vendor would directly ship the goods to customer located outside India. — PTI

AAR verdict

On an application filed by Sterlite Technologies, the Gujarat Bench of the AAR has ruled that 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