Exemption on supply of gold by nominated agency for export of jewellery - (26/2018) No. FD 48 CSL 2017 - Karnataka SGST

FINANCE SECRETARIAT NOTIFICATION (26/2018) No. FD 48 CSL 2017, Bengaluru, dated: 31.12.2018 In exercise of the powers conferred by sub-section (1) of section 11 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), the Government of Karnataka, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council hereby exempts the intra-State supply of gold falling in heading 7108 of the First Schedule to the Customs Tariff Act, 1975 (Central Act 51 of 1975), when supplied by Nominated Agency under the scheme for Export Against Supply by Nominated Agency as referred to in paragraph 4.41 of the Foreign Trade Policy, read with relevant provisions of Chapter 4 of Handbook of Procedures, Volume-I, to registered person (herein referred to as recipient ), from the whole of the State Tax leviable thereon, under section 9 of the Karnataka Goods and Services Tax Act, 2017, subject to following conditions, namely: (i) The Nominated Agency and the recipient shall follow the conditions and subject observe the procedures as prescribed in the Foreign Trade Policy read with Handbook of Procedures, Volume-I. (ii) The recipient shall export the jewellery made out of such gold within a period of 90 (ninety) days from the date of supply of gold to such recipient and shall provide copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number (GSTIN) alongwith the invoice for exports to the Nominated Agency within a period of 120 (one hundred and twenty) days from the date of supply by the Nominated Agency. (iii) Wherever such proof of export is not produced within the period mentioned in clause (ii), the Nominated Agency shall pay the amount of State Tax payable on the quantity of gold not exported, along with interest from the date when tax on such supply was payable, but for the exemption. Explanation. - for the purpose of this notification, (a) Foreign Trade Policy means the Foreign Trade Policy, 2015-2020, notified by the Government of India in the Ministry of Commerce and Industry vide notification no.41/2015-2020, dated 5th December, 2017, published in the Gazette of India, Extraordinary, Part Il, Section 3, Sub-Section (ii) vide S.O.3813, dated 5th December, 2017; (b) Handbook of Procedures, Volume-I means the Handbook of Procedures, notified by the Government of India in the Ministry of Commerce and Industry vide Public Notice No.43/2015-2020, dated 5th December, 2017, published in the Gazette of India, Extraordinary, Part I, Section 1, vide F.No.01/94/ 180/333/AM 15/PC, dated 5th December, 2017; (c) Nominated Agency means entities mentioned in List 32 of Notification No. 50/2017 -Customs, dated 30th June 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub Section (1), vide number G.S.R. 785 (E), dated 30th June, 2017; (d) Heading means heading as specified in the First Schedule to the Customs Tariff Act, 1975 (Central Act 51 of 1975). 2. This notification shall come into force on the 1 st January, 2019. By Order and in the name of the Governor of Karnataka, K.S. PADMAVATHI Under Secretary to Government, Finance Department [C.T.-I].