The circular clarifies to exporters the procedure to be followed, for GST purposes, at the time of taking the goods out of India and at the time of their subsequent sale or return to India. The key points included in the circular are as follows:
| – | the activity of taking goods out of India on consignment basis for exhibitions is not a supply for GST purposes, since no consideration is received at that point in time; |
| – | the movement of these goods must be accompanied by an official delivery form issued in accordance with rule 55 of the Central GST Rules; |
| – | since no supply is made at the time of taking such goods out of India, no zero-rated supply is involved and, therefore, execution of a bond or letter of undertaking under section 16 of the Integrated GST Act is not required; |
| – | goods taken out of India in this manner must be either sold or returned within 6 months of the date the goods were taken out; |
| – | if the goods are neither sold nor returned within 6 months, a deemed supply will be involved and, therefore, the sender must issue a tax invoice on the date of expiry of 6 months from the date the goods were taken out of India. The benefit of zero-rating, including refund, will not be available for such supplies; |
| – | if the goods are sold in part or in full abroad within the period of 6 months, the sender must issue a tax invoice for these zero-rated supplies, in respect of the quantity sold, on the date of such sale. However, a refund relating to such supplies will be available only in the form of a refund of unutilized input tax credit, not as a refund of Integrated GST; and |
| – | no tax invoice is required for goods which are returned to India within 6 months. |
Source Circular
