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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 ..... 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 formations, the Board, in exercise of its powers conferred under section 168(1) of the Delhi Goods and Services Tax Act, 2017 (hereinafter referred to as the "DGST Act") hereby clarifies various issues in succeeding paragraphs. 3. As per section 7 of the DGST Act, for any activity or transaction to be consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot fall within the scope of section 7 of the DGST 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. 7. Since the activity of sending / taking specified goods out of India is not a supply, doubts have been raised by the trade and industry 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? T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the date of removal as per the provisions contained in sub- section (7) of section 31 of the DGST 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 are not brought back, either fully or partially, within the stipulated period? a) When the specified goods sent / taken out of India have been sold fully or par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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 DGST Act read with sub-rule (4) of rule 89 of the DGST 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 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdance with the provisions contained in rule 55 of the DGST 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 DGST Act read with rule 46 of the DGST Rules. If the remaining 40 units are not brought back within the stipulated period of six months from the date of removal, a tax invoice would be required to be issued for 40 units in accordance with the provisions contained in section 12 and section 31 of the DGST Act re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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