HP India Sales GST Advance Ruling TN/109/AAR/2023 Withdrawn
The Authority for Advance Ruling in Tamil Nadu closed the HP India Sales case without deciding on GST taxability or input tax credit.
- Ruling
- Advance Ruling No.109/AAR/2023 Dated:08.09.2023
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- HP India Sales asked about GST on goods supplied from FTWZ facilities.
- The company also asked about claiming input tax credit for these supplies.
- The applicant withdrew their request before the authority could make a decision.
- The authority disposed of the application without ruling on the merits.
In short
HP India Sales asked the Tamil Nadu Authority for Advance Ruling (AAR) whether selling goods from a Free Trade Warehousing Zone (FTWZ) to resellers attracts Integrated Goods and Services Tax (IGST). They also wanted to know if they could claim input tax credit on the costs related to these sales. However, the company withdrew its request before the authority could provide an answer.
What has changed
How it worked before
Businesses often look to advance rulings to understand how tax authorities view specific transactions involving FTWZ operations and input tax credit eligibility.
What has changed
Nothing changed because the authority did not issue a decision. The case was closed as withdrawn, meaning there is no new guidance or precedent for other businesses to follow.
Who this affects
Businesses operating out of Free Trade Warehousing Zones who are uncertain about their GST liability or input tax credit claims.
An example
Imagine a logistics company operating in a Chennai FTWZ that wants to know if their sales to other FTWZ units are taxable. They might look at this HP India Sales order hoping for an answer. Because the HP case was withdrawn, the logistics company gains no clarity and must still seek their own professional advice or file their own application if they need a formal answer.
What you should do
Since this order provides no guidance, you cannot rely on it for your own tax planning. An advance ruling only binds the specific business that asked and its own tax office, so you should consult with your tax advisor regarding your specific business model.
If you do nothing
If you assume this order sets a rule for your business, you risk making incorrect tax filings. A tax officer is not bound by a withdrawn case and may disagree with your interpretation, leading to potential penalties or interest charges. Always treat withdrawn rulings as non-existent for your own tax compliance.
The terms explained
- Free Trade Warehousing Zone (FTWZ)
- A special area designated for storing goods and performing trade activities with specific tax benefits.
- Input Tax Credit
- A system that allows businesses to reduce the tax they pay on their sales by the amount of tax they already paid on their business purchases.
- Advance Ruling
- A formal decision from tax authorities on how tax laws apply to a specific business transaction.
The ruling in detail
Authority for Advance Ruling
M/s. HP INDIA SALES PRIVATE LIMITED
Advance Ruling No.109/AAR/2023 Dated:08.09.2023 · Tamil Nadu
Questions before the authority
- Whether supply of goods from FTWZ facilities by the Applicant to the Resellers located within the same FTWZ or different FTWZ would be subjected to IGST?
- If there is no liability to tax under IGST, then whether they are eligible to avail input tax credit on inputs, input services and capital goods used in furtherance of such supply of goods from FTWZ to the said Resellers?
Facts
The applicant proposes to import goods into FTWZ facilities in Chennai or procure them from domestic suppliers to store them. They intend to sell these goods to resellers located in Bangladesh, Sri Lanka, or India (within an FTWZ) while the goods remain in the FTWZ. The applicant sought a ruling on the taxability of these supplies and the eligibility to claim input tax credit on related inputs and services.
Ruling
The authority did not rule on the merits of the questions presented. The applicant requested to withdraw their application for an advance ruling unconditionally. Consequently, the authority disposed of the application as withdrawn.
Reasoning
The applicant failed to attend the scheduled personal hearing on 12.09.2023. Instead, they submitted a letter on the same date requesting to withdraw their application for an advance ruling. The authority considered this request and decided to treat the application as withdrawn without examining the merits or detailed facts of the case.
For the practitioner
This order provides no substantive guidance on the taxability of supplies from FTWZ or the eligibility for input tax credit. It serves only as a procedural record of the applicant's withdrawal of their request. Practitioners should note that this ruling does not establish a precedent for the issues raised.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/109_hp.pdf
Legibility of the scan, as read: high.
Prepared 13-10-2026.
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