GST Treatment on Capital Goods Sent Outside India Temporarily

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This query is : Resolved

Suresh S. Tejwani (Querist)

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)

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.

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