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TMI BlogClarification in respect of goods sent/taken out of India for exhibition or on consignment basis for export promotionX X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 2. The matter has been examined 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, the Board, in exercise of its powers conferred under section 168(1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act ) hereby clarifies various issues in succeeding paragraphs. 3. As per section 7 of the CGST Act, for any activity or transaction to be considered a supply, it must satisfy twin tests namely- (i) it should be for a consideration by a person; and (ii) it should be in the course or furtherance of business. 4. The exceptions to the above are the activities enumerated in Schedule I of the CGST Act which are treated as supply even if made without consideration. Further, sub-section (21) of section 2 of the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arified above, the activity of sending / taking specified goods out of India is not a supply. b) The said activity is in the nature of sale on approval basis wherein the goods are sent / taken outside India for the approval of the person located abroad and it is only when the said goods are approved that the actual supply from the exporter located in India to the importer located abroad takes place. The activity of sending / taking specified goods is covered under the provisions of sub-section (7) of section 31 of the CGST Act read with rule 55 of Central Goods Services Tax Rules, 2017 (hereinafter referred to as the CGST Rules ). c) The specified goods shall be accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of the CGST Rules. d) As clarified in paragraph 6 above, the activity of sending / taking specified goods out of India is not a zero-rated supply. That being the case, execution of a bond or LUT, as required under section 16 of the IGST Act, is not required. 3. When is the supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the sender of goods cannot prefer any refund claim when the specified goods are sent / taken out of India. b) It has further been clarified in answer to question no. 3 above that the supply would be deemed to have taken place: (i) on the date of expiry of six months from the date of removal, if the specified goods are neither sold nor brought back within the said period; or (ii) on the date of sale, in respect of such quantity of specified goods which have been sold abroad within the specified period of six months. c) It is clarified accordingly that the sender can prefer refund claim even when the specified goods were sent / taken out of India without execution of a bond or LUT, if he is otherwise eligible for refund as per the provisions contained in sub-section (3) of section 54 the CGST Act read with sub-rule (4) of rule 89 of the CGST Rules , in respect of zero rated supply of goods after he has issued the tax invoice on the dates as has been clarified in answer to the question no. 4 above. It is further clarified that refund claim cannot be preferred under rule 96 of CGST Rules as supply is taking plac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdance with the provisions contained in sub-section (3) of section 54 of the CGST Act read with sub-rule (4) of rule 89 of the CGST Rules in respect of zero-rated supply of 60 units. 9. It is requested that suitable trade notices may be issued to publicize the contents of this circular. 10. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board. Hindi version would follow. (Upender Gupta) Principal Commissioner (GST) ANNEXURE RECORD OF SPECIFIED GOODS SENT / TAKEN OUT OF INDIA AND BROUGHT BACK / SOLD ABROAD Folio No./Reference No. Description of specified goods Quantity unit (Nos./grams/piece etc.) Value per unit Total value of the specified goods Date of removal from place of business (1) (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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