Scope of supply— Section 7 of CGST Act— The present appeal has been filed against the advance Ruling order.

The issue in this appeal is limited as to whether the sales effected from the Security Hold Area of the IGI Airport, T-3, New Delhi tantamount to “export of goods” and are well within the definition of “export of goods” under the IGST Act, 2017.

As per Section 2(5) of the Integrated Goods and Services Tax Act, 2017, “export of goods” with its grammatical variations and cognate expressions, means taking out of India to a place outside India. Further, as per Section 2(56) of CGST Act, 2017 “India” means the territory of India as referred to in article 1 of the Constitution of India, its Territorial Waters, Seabed and Sub-oil underlying such waters, Continental Shelf, Exclusive Economic Zone (EEZ) or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its territory and territorial waters. For the purpose of CGST Act, India extends upto the Exclusive Economic Zone upto 200 nautical miles measured from the appropriate baseline.

The location of the appellant's shop is in the Security Hold Area (SHA) and this is undisputed fact on record. On a conjoint reading of the definitions, as extracted herein, it naturally follows that appellant's shop in SHA cannot by any stretch of imagination be said to be located outside India. Instead, we find that the appellant's shop is located within India, as defined under s2(56) of the CGST Act, 2017 read with s2 (27) of the Customs Act, 1962.

Export of goods “export of goods” means taking goods out of India to a place outside India. We have already held that the transactions of the appellant are taking place in the SHA, which falls well within the definition of 'India.

Held that— This authority hold that transactions i.e. supply of goods to outbound international travellers fall within the definition of “taxable territory” and when read in conjunction with section 7 of the CGST Act, 2017 forms “supply” and attracts the applicable GST on the date of supply of the goods. We hold it accordingly. The appeal, being devoid of merits, is dismissed.