Question60: UK company (outside India) is a holding company of C Ltd (Indian company). Holding co. wants to send goods to its subsidiary comapny, C Ltd. Holding company bought goods from SEZ (Special Economic Zone) in order to sell it to C Ltd. SEZ(Chennai) made Bill in the name UK company (outside India) and goods have been shipped to Indian Co.(C Ltd) in haryana. So this is a case of billed to UK and shipped to haryana. Invoice has been issued by SEZ inclusive of GST amounting Rs 118 (Rs 100 + 18 GST). Since goods have been sent by SEZ in DTA unit, so bill of entry for home consumption has been filed in the Name and GSTN of that Indian company (C Ltd).

Our queries are as follows :-

a) Whether the Invoice (including GST) raised by SEZ is correct'

b) Whether such transaction is to be considered as export from the view point of SEZ.

c) Whether C Ltd can claim credit of GST amounting Rs. 18 shown in the bill of entry since it has been made in the name of C Ltd.

If no, which document is required so that C ltd can claim ITC of GST of Rs. 18/-.

Answer: Point wise reply of your query are as follows:-

1. It is not the case of Export because the definition of export of goods u/s section 2(5) of IGST act requires movement of goods outside India.

Section 2(5) of IGST Act is reproduced below:-

(5) 'export of goods' with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India;

2. No, Because goods have not crossed the Indian border/ Territorial water of India.

3. C can not claim credit because the material are build to Holding company. For taking credit the invoice should be in favor of C ltd and their GSTIN no. should be given on Invoice.

As already replied the Holding company is required to take registration as NRI under Rule 13 of CGST Rules.(REPLY dt. 26/02/2018)