High sea sale

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Is GST is applicable for High sea sale ?

 

Replies (3)
No..........

The original importer sells the goods to party before it reaches to custom clearance in India, so in this case the agreement is signed & bill is raise by original importer to party on margin of 1% profit by commercial invoice (in dollars) & this sale does not liable for any GST, & it is shown by Importer in his GSTR1 under table 8 ( under nil rated or exempted )
Hi Kowsalya,
GST is generally not applicable on 'High Sea Sales'. As there were doubts w.r.t levy of GST on High Sea Sales, govt. has issued a circular in this regard clarifying that IGST on High Sea Sale(s) shall be levied and collected only at the time of importation. Further, value addition accruing in each such High Sea Sale shall form part of the value on which IGST is collected at the time of clearance i.e., buyer shall pay IGST on the final purchase value as per last High Sea Transaction.

Hence, goods are liable to IGST only when they are imported into India and IGST is payable at the time of importation of goods into India.
Yes the 2nd party to whom agreement is sell will pay the custom duty & IGST, but the Original importer will not pay any Tax


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