The Tamil Nadu Authority of Advance Ruling (AAR) ruled that GST is applicable on Components, supplied in Sale-in-Transit transaction, without payment of tax under erstwhile CST regime.
The applicant, M/s. Andritz Hydro Private Limited has stated that they have entered into a contract with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) for renovation, modernisation and uprating the Sholayar Power Houselocated at Sholayar, District Coimbatore, Tamil Nadu.
In terms of the Contract, AHPL was required to supply new components, tool, tackles, spares and such other material (Components) for undertaking modification, engineering, erecting, testing, commissioning and associated technological, civil, mechanical, and electrical works, as part of the Project. For the purpose, the Applicant inter alia, purchased Components from various vendors.
The applicant has sought the advance ruling on the issue Whether the Components, which were supplied in Sale-in-Transit transaction, without payment of tax under the erstwhile Central Sales Tax regime, by the Applicant, i.e.AHPL to its Customer (TANGEDCO) in Tamil Nadu, will attract levy of Goods and Services Tax.
The coram of members T.Padmavathi and B.Senthilvelan held that the Components, which were supplied in Sale-in-Transit transaction, without payment of tax under the erstwhile Central Sales Tax regime, by the Applicant , i.e. AHPL to its Customer (TANGEDCO) in Tamil Nadu is a `Supply’ as per Section 7 of the CGST/TNGST Act 2017 and will attract levy of Goods and Services Tax.
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