GST ON HIGH SEAS SALES

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This query is : Resolved

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This discussion clarifies that sales occurring on the high seas before goods cross Indian customs frontiers are generally considered outside the purview of GST, falling under Schedule III of the CGST Act. Such transactions are treated as neither a supply of goods nor services. The query also seeks guidance on how to accurately reflect these high seas sales within the GSTR-1 filing, with suggestions to report them under 'exempt supply' or 'non-GST supply'.

CHANDAN RUPCHANDANI

CHANDAN RUPCHANDANI (Querist)
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11 June 2024 Respected Sir / Mam,

My query is that suppose Mr. A import goods from foreign to India and Sells the same goods to Mr. B, further Mr. B sells the same goods to Mr.C (SEZ UNIT), before the goods crosses custom frontiers of India. As this is Two high seas sales together, So What will be the GST Applicablility on this Transaction ? Is Mr. A and Mr. B both liable to charge GST on high seas sales ??

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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11 June 2024 Since this Transaction is of Sale to & from Non Taxable Territory it is covered under Schedule III of CGST Act ,
Such transaction are out of purview of GST i.e. it is not considered as Supply of Goods neither Service

CHANDAN RUPCHANDANI

CHANDAN RUPCHANDANI (Querist)
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11 June 2024 Thank you for your Reply @ CA. Bhavik P. Chudasama. Also Request you to assist in how to show high seas sales in GSTR-1 ??

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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12 June 2024 If you go by Section 2 (47) -& 2(78) , all supplies i.e. Exempt, Nil Rated and even Non Taxable Supply is covered under Exempt Supply, so better to show under Exempt Supply in GSTR 1

CHANDAN RUPCHANDANI

CHANDAN RUPCHANDANI (Querist)
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12 June 2024 can we show it under non gst supply ??

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