High seas sale concept in gst era

Abhishek Roy (Senior Finance Executive)   (92 Points)

08 December 2017  

Hi..........,

We have entered in a contract agreement of supply of railway components to DMRC (Delhi Metro Rail Corporation Ltd) which is being imported from outside India before it reaches the Indian custom frontier.

We are utilizing our own IEC licence code to get the components imported but here lies a confusion about the taxability in GST, though it is referred by CBEC as it liable to IGST at the time of Import, but it is difficult to understand how to maintain our contract price.

following points to be noted :

1) The Bill of Entry is in the name of our concern as per our IEC License code.

2) We have to add some monetary consideration to the total imported(liable to IGST) amount in order to attain our Contract value stipulated in our agreement with DMRC.

I have gone through the circular issued by CBEC (Circular No. 33 /2017-Cus) but could'nt make out the actual concept.

Please suggest will the High sale be taxable/exempted from our point....?