which seeks to clarify issues regarding procedure to be followed in respect of goods sent / taken out of India for exhibition or on consignment basis for export promotion.


 Notice Date : 18 July 2019

Circular No. 108/27/2019-GST 

CBEC-20/06/03/2019-GST

Government of India

Ministry of Finance

Department of Revenue Central Board of Indirect Taxes and Customs

GST Policy Wing

***

New Delhi, Dated the 18th July, 2019

To,

The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /

Commissioners of Central Tax (All)

The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /

Commissioners of Customs / Customs (Preventive) (All)

The Principal Director Generals / Director Generals (All)

Madam/Sir,

Subject: Clarification in respect of goods sent/taken out of India for exhibition or on consignment basis for export promotion - reg.

       Various representations have been received from the trade and industry regarding procedure to be followed in respect of goods sent / taken out of India for exhibition or on consignment basis for export promotion. Such goods sent / taken out of India crystallise into exports, wholly or partly, only after a gap of certain period from the date they were physically sent / taken out of India.

2. The matter has been examined and in view of the difficulties being faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under section 168(1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”) hereby clarifies various issues in succeeding paragraphs.

3. As per section 7 of the CGST Act, for any activity or transaction to be considered a supply, it must satisfy twin tests namely- Circular No. 108/27/2019-GST 

(i) it should be for a consideration by a person; and

(ii) it should be in the course or furtherance of business.

4. The exceptions to the above are the activities enumerated in Schedule I of the CGST Act which are treated as supply even if made without consideration. Further, sub-section (21) of section 2 of the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as the “IGST Act”) defines “supply”, wherein it is clearly stated that it shall have the same meaning as assigned to it in section 7 of the CGST Act.


To know more in details,click here

 

Guest
on 18 July 2019
Circular No : 108/2019
Published in GST
Source : , http://www.cbic.gov.in/htdocs-cbec/gst/circular-cgst-108.pdf





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