9911796707
TMI BlogClarification in respect of goods sent/taken out of India for exhibition or on consignment basis for export promotion.X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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 to ensure uniformity in the implementation of the provisions of the law the Commissioner, in exercise of its powers conferred under section 168(1) of the Bihar Goods and Services Tax Act, 2017 (hereinafter referred to as the BGST Act ) hereby clarifies various issues in succeeding paragraphs. 3. As per section 7 of the BGST 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; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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. 7. 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 the clarification on each of these points is as under: - Sl.No. Issue Clarification 1. Whether any records are required to be maintained by registered person for sending / taking specified goods out of India? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s sent / taken out of India are required to be either sold or brought back within the stipulated period of six months from the date of removal as per the provisions contained in subsection (7) of section 31 of the BGST Act. b) The supply would be deemed to have taken place, on the expiry of six months from the date of removal, if the specified goods are neither sold abroad nor brought back within the said period. c) If the specified goods are sold abroad, fully or partially, within the specified period of six months, the supply is effected, in respect of quantity so sold, on the date of such sale. 4. Whether invoice is required to be issued when the specified goods sent / taken out of India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 BGST Act read with sub-rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) M/S ABC units of specified goods out of India. The activity of sending/taking such specified 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 BGST Rules. If 10 units of specified goods are sold abroad say after one month of sending / taking out and another 50 units are sold say after two months of sending / taking out, a tax invoice would be required to be issued for 10 units and 50 units, as the case may be, at the time of each of such sale in accordance with the provisions contained in section 12 and section 31 of the BGST Act read with rule 46 of the BGST R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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