GST Treatment on Capital Goods Sent Outside India Temporarily

This query is : Resolved

Suresh S. Tejwani (Querist)
Follow

25 December 2025 A capital goods machine is being taken from India to Bhutan for temporary use (on rental basis) and will be brought back to India after around 2–3 years.
-Whether this movement is treated as export under GST (zero-rated) or otherwise?
-Whether GST is payable in India on such movement?
-Whether e-way bill is required only up to port / land customs station or also beyond that?
-What will be the GST / customs implication when the machine is re-imported into India?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

25 December 2025 Yes, the movement of the machine from India to Bhutan qualifies as an export of goods under GST (zero-rated). No GST is payable in India at the time of export, but proper documentation is required. An e-way bill is needed only up to the port/land customs station in India. On re-import, customs duty and IGST may apply, but relief is available if the goods are re-imported in the same condition under specific exemption notifications.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now