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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 ..... Circular No. 108/27/2019-GST, dated -07-2019 issued by the Department of Revenue, Ministry of Finance, Government of India, New Delhi. 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. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ' which are either 'export' or are 'supply to SEZ unit / developer' would qualify as zero-rated supply. 6. It is, accordingly, clarified 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 TNGST Act (hereinafter referred to as the specified goods ), do not constitute supply as the said activity does not fall within the scope of section 7 of the TNGST Act 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 IGST Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the provisions of sub-section (7) of section 31 of the TNGST Act read with rule 55 of TNGST Rules (hereinafter referred to as the TNGST Rules ). c) The specified goods shall be accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of the TNGST 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 of specified goods sent / taken out of India said to take place? a) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section (7) of section 31 of the TNGST Act, the sender shall issue a tax invoice on the date of expiry of six months from the date of removal, in respect of such quantity of specified goods which have neither been sold nor brought back, in accordance with the provisions contained in section 12 and section 31 of the TNGST Act read with rule 46 of the TNGST Rules. 5. Whether the refund claims can be preferred in respect of specified goods sent / taken out of India but not brought back? a) As clarified in para 5 above, the activity of sending / taking specified goods out of India is not a zero-rated supply. That being the case, the sender of goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied goods out of India is not a supply. No tax invoice is required to be issued in this case but the specified goods shall be accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of the TNGST Rules. In case the entire quantity of specified goods is brought back within the stipulated period of six months from the date of removal, no tax invoice is required to be issued as no supply has taken place in such a case. In case, however, the entire quantity of specified goods is neither sold nor brought back within six months from the date of removal, a tax invoice would be required to be issued for entire 100 units of specified goods in accordance with the provisions contained in section 12 and section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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