HIGHSEASALES

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High Sea Sales (HSS) refer to transactions where goods are sold while still in transit, either on the high seas or after dispatch but before arrival at their destination. Crucially, the sale agreement must be finalised after goods leave the origin port and before they reach the first discharge port. For customs purposes, endorsing the Bill of Lading, invoice, and packing list to the new buyer is recommended, clearly stating the transfer on a High Sea Sales basis.

arvind r shah

arvind r shah (Querist)
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29 April 2020 Where to show in GSTR 3 B
& GSTR 1.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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29 April 2020 Show in non-taxable outward supplies

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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08 May 2020 It has to be in GSTR-1

For those who are thinking what is High Sea Sales ?

High Sea sales (HSS) is a sale carried out by the actual consignee (ie, the consignee shown in the Bill of Lading) to another buyer while the goods are yet on high seas or after their dispatch from the port of loading (POL) and before their arrival at the port of discharge (POD). HSS contract/agreement should be signed after dispatch of goods from origin & prior to their arrival at destination. The agreement should be on stamp paper. The word ‘Sea’ appearing in HSS should not be taken by it’s literal meaning. As long as the sale is formalized after dispatch from port of origin and before arrival at the first port of discharge at destination, such sale is considered as HSS.
On concluding the HSS agreement, the B/L should be endorsed in favour of the new buyer. If the seller does not mind disclosing original import values to HSS buyer, in such case it is better from custom clearance point of view for the seller to endorse the B/L, invoice , packing list in favour of the HSS buyer. The endorsement should read “Transferred on High Sea Sales basis to M/S ——– for a sales consideration of Rupees ——–“. Such endorsement should be stamped and signed by the HSS seller.
Sometime HSS buyers buy goods after their arrival. Such sale are not HSS. The stamp paper on which the HSS agreement is executed must not bear the stamp paper purchase date as being post cargo arrival date. Such a case can easily be detected by customs as being a post arrival sale.

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