GST Advisory related to ‘Other Territory’ applications!

In the complex landscape of Goods and Services Tax (GST), businesses often encounter challenges when dealing with transactions and services that extend beyond each state’s borders. One such challenge is understanding the GST implications for operations involving what is referred to as the "Other Territory"—a term commonly used in GST law to categorize areas that do not fall under the jurisdiction of the Indian tax system, such as special economic zones (SEZs) or continental shelf.

GSTN issued an advisory on 07^th November 2024 about the administration of the registrations of the applicants of “Other Territory”.

Let’s understand the changes!

Advisory dated 7^th November 2024

Advisory related to ‘Other Territory’ applications

Nov 7th, 2024

Dear Taxpayers,

As per Notification No. 2/2017-Central Tax dated 19th June 2017 read with Trade Notice No. 01/2017-Central Tax dated 21st June 2017 issued by Office of the Chief Commissioner of Central Excise, Mumbai Zone I and GST Trade Notice No. 002/2017 dated 20th June 2017 issued by Central Excise Zone, Chennai, the applicant applying for new registration application and selecting the category of ‘Other Territory’ in the tab of State/UT in Part-A of GST registration form, shall only be administered under ‘Mumbai South’ or ‘Chennai North’ Commissionerate’s and shall select centre jurisdiction as follows:

1. For ‘Other Territory’ about the continental shelf and exclusive economic zone contiguous to the western coast of India adjacent to States/ Union Territories of Gujarat, Maharashtra, Goa, Daman, and Diu, Karnataka, Kerala, and Lakshadweep, the applicant shall select as :

 Commissionerate: ‘Mumbai South’

 Division: ‘Division 1’

 Range: Range I- A-D (as per the first alphabet of the applicant’s name)

 Range II- E-H

 Range III- I-M

 Range IV- N-R

 Range IV- N-R

 Range V- S-Z

2. For ‘Other Territory’ about the continental shelf and exclusive economic zone contiguous to the eastern coast of India adjacent to States/ Union Territories of West Bengal, Odisha, Andhra Pradesh, Puducherry, Tamil Nadu, and Andaman and Nicobar Islands, the applicant shall select as:

Commissionerate: ‘Chennai North’

Division: Any of the divisions corresponding to ‘Chennai North’ will be displayed in the dropdown.

Range: Any of the ranges corresponding to the selected division that appear in the dropdown.

The applicant is advised to select the division and range corresponding to ‘Chennai North’ Commissionerate as per the first alphabet of the applicant’s name as mentioned in the trade notice which is available on the following link (Pages 1 to 13):

https://gstchennai.gov.in/pdf/cco-gst-trade-notice-2017/GST%20Trade%20Notice%20No.002.2017%20Dt.20.06.2016.PDF

Thanking you,
Team GSTN

Key Highlights of the Advisory:

• The advisory pertains to applicants selecting the 'Other Territory' category in the GST registration form for territories such as the continental shelf and exclusive economic zones adjacent to various states and Union Territories of India.
• Jurisdictional Instructions:

1. Western Coast (Mumbai South Commissionerate):

• Applies to territories contiguous to Gujarat, Maharashtra, Goa, Daman and Diu, Karnataka, Kerala, and Lakshadweep.
• Applicants must select:
  • Commissionerate: Mumbai South
  • Division: Division 1
  • Range: Based on the first letter of the applicant's name (e.g., Range I for A-D, Range II for E-H, etc.).

2. Eastern Coast (Chennai North Commissionerate):

• Applies to territories contiguous to West Bengal, Odisha, Andhra Pradesh, Puducherry, Tamil Nadu, and Andaman and Nicobar Islands.
• Applicants must select:
  • Commissionerate: Chennai North
  • Division: Any corresponding division listed in the dropdown.
  • Range: Based on the first letter of the applicant's name.

Conclusion

In conclusion, the GST advisory regarding 'Other Territory' applications provides clear instructions for applicants applying under the specified category. By following the outlined jurisdictional guidelines for the Mumbai South and Chennai North Commissionerate's, applicants can ensure correct registration and compliance with GST requirements. 

It is crucial for applicants to carefully select the appropriate division and range based on their name and territorial jurisdiction to avoid any discrepancies. For further details and clarification, applicants are encouraged to refer to the full Trade Notice. Adhering to these instructions will help streamline the registration process and ensure smooth GST compliance for businesses operating in these unique territorial areas.