Levy of GST— The subject appeal has been filed against the order passed by advance ruling authority.

The Advance Ruling Authority had given the following advance rulings:-

1. Is GST liable to be paid on leasing of tank containers taken form a supplier i.e., lessor who is located outside India and the tank containers do not reach India? As it is finance lease, it is supply of goods and tank containers do not reach the Indian Territory.

Yes. The applicant is liable to pay IGST on importation of lease services into India.

The appellant has entered into 'lease purchase agreements' with M/s Tankspan leasing Ltd, Surrey, United Kingdom, as per the agreements the appellant shall pay agreed rates of lease rentals every month and the appellant shall have an option to purchase the tank containers at the end of the lease period.

As per the Provisions of Section 13 of IGST Act,2017 where the location of the supplier of services or recipient of services is located outside India, the place of supply is the location of recipient of services. Therefore, the transaction is taxable under reverse charge basis, with tax to be paid by the recipient of services, i.e. M/s Deccan Transco Leasing Private Limited with Place of Supply as 'Telangana'.

Held that— The applicant is liable to pay IGST on Importation of lease services into India.