Rod Retail Pvt. Ltd. – AAR Delhi

Rod Retail Pvt. Ltd. – AAR Delhi

Issue Involved : Whether the supply of goods to international outbound passengers, holding international boarding passes, from retail outlets located in international airports and claimed to be beyond the Customs Frontiers of India, should be considered as zero rated supply , being export of goods , or subjected to GST?  

Ruling By AAR :  Such supply cannot be treated as ‘export’ or ‘zero rated supply’ and GST is payable at the applicable rates.

• As per GST Law, goods are said to be exported only when they cross the territory of India .
• Goods cannot be said to be exported merely on crossing the Customs Frontier of India .
• When goods are exported by air, the export will be completed only when goods cross the airspace limits of the territory or the territorial waters of India. 
• Outlets are located at the security hold area of international airports, which is not outside India but is within the territory of India. Hence, the applicant is not taking goods out of India and the supply cannot be treated as ‘export’ or ‘zero rated supply’.