CBIC clarifies on goods sent or taken out of India for exhibition or on consignment basis for export promotion

Jul 19, 2019 | by Avantis RegTech Legal Research Team


The Central Board of Indirect Taxes and Customs (CBIC) on July 18, 2019, has clarified on goods sent/taken out of India for exhibition or on consignment basis for export promotion.

However, various representations have been received from the trade and industry regarding procedure to be followed in respect of goods sent / taken out of India for exhibition or on consignment basis for export promotion. Such goods sent / taken out of India crystallise into exports, wholly or partly, only after a gap of certain period from the date they were physically sent / taken out of India.

Therefore, CBIC examined the matter and in view of the difficulties being faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the law across the field formations, clarifies that:

The activity of sending / taking the goods out of India for exhibition or on consignment basis for export promotion, except when such activity satisfy the tests laid down in Schedule I of the Central Goods and Services Tax Act, 2017, which is related to specified goods, do not constitute supply as the said activity does not fall within the scope of section 7 of the Central Goods and Services Tax Act, 2017, which specifies that twin tests has to be satisfy for any activity or transaction to be considered a supply, as there is no consideration at that point in time. Since such activity is not a supply, the same cannot be considered as “Zero rated supply” as per the provisions contained in section 16 of the Integrated Goods and Services Tax Act, 2017.

Since the activity of sending / taking specified goods out of India is not a supply, doubts have been raised on issues relating to maintenance of records, issuance of delivery challan / tax invoice etc. These issues have been examined and clarification has been given on each of them. The issues are:

Ø  Whether any records are required to be maintained by registered person for sending / taking specified goods out of India?

Ø  What is the documentation required for sending / taking the specified goods out of India?

Ø  Whether invoice is required to be issued when the specified goods sent / taken out of India are not brought back, either fully or partially, within the stipulated period?

Ø  Whether the refund claims can be preferred in respect of specified goods sent / taken out of India but not brought back?

[Circular No. 108/27/2019-GST]


Bookmark

Related Updates



Alternate Text

Get updates on the go on RuleZbook Mobile App.