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Overseas Purchase and Sale of Goods.

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AJAY WALIA

ACCOUNTANT BY PROFESSION

35 Points Posted on 06 February 2021

Hello

GST treatment for the goods purchased outside India and sale of same goods outside India by Indian company without entering or crossing the Indian Territory.

Thanks

Replies (3)

Quick Summary

This discussion clarifies the GST treatment for goods purchased and sold outside India by an Indian company without crossing Indian territory, often referred to as 'High Sea Sales'. Previously, input tax credit (ITC) reversal was required as these were considered non-taxable supplies. However, an amendment to Schedule III of the CGST Act, effective from 1 February 2019, states that High Sea Sales are not treated as supply, thus negating the need for ITC reversal.

Nilkesh Parmar

106 Points Posted on 06 February 2021

It is High Sea Sale
Earlier the reversal of ITC was required in respect of such supply as it was treated as non-taxable supply, also the AAR, Maharashtra in the case of BASF India Limited held the same view. However amendment in Schedule III notified with effect from 01 Feb 2019 High Sea Sale is not to be treated as supply and accordingly should not be treated as exempt supply and thereby require reversal of ITC of inputs.