TMI BlogClarification in respect of goods sent / taken out of India for exhibition or on consignment basis for export promotion.X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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, in exercise of powers conferred under section 168(1) of the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the KGST Act ) various issues are hereby clarified in succeeding paragraphs. 3. As per section 7 of the KGST Act, for any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titute supply as the said activity does not fall within the scope of section 7 of the KGST Act as there is no consideration at that point in time. Since such activity is not a supply, the same cannot be considered as Zero rated supply as per the provisions contained in section 16 of the IGST Act. 7. Since the activity of sending / taking specified goods out of India is not a supply, doubts have been raised by the trade and industry on issues relating to maintenance of records, issuance of delivery challan / tax invoice etc. These issues have been examined and the clarification on each of these points is as under: - Sl.No. Issue Clarification 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. When is the supply of specified goods sent / taken out of India said to take place? a) The specified goods sent / taken out of India are required to be either sold or brought back within the stipulated period of six months from the date of removal as per the provisions contained in subsection (7) of section 31 of the KGST Act. b) The supply would be deemed to have taken place, on the expiry of six months from the date of removal, if the specified goods are neither sold abroad nor brought back within the said period. c) If the specified goods are sold abroad, fully or partially, within the specified period of six months, the supply is effected, in respect of quantity so sold, on the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India is not a zero-rated supply. That being the case, the sender of goods cannot prefer any refund claim when the specified goods are sent / taken out of India. b) It has further been clarified in answer to question no. 3 above that the supply would be deemed to have taken place: (i) on the date of expiry of six months from the date of removal, if the specified goods are neither sold nor brought back within the said period; or (ii) on the date of sale, in respect of such quantity of specified goods which have been sold abroad within the specified period of six months. c) It is clarified accordingly that the sender can prefer refund claim even when the specified goods were sent / taken out of India without execution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31 of the KGST Act read with rule 46 of the KGST Rules within the time period stipulated under sub-section (7) of section 31 of the KGST Act. ii) M/s. ABC sends 100 units of specified goods out of India. The activity of sending taking such specified goods out of India is not a supply. No tax invoice is required to be issued in this case but the specified goods shall be accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of the KGST Rules. If 10 units of specified goods are sold abroad say after one month of sending / taking out and another 50 units are sold say after two months of sending / taking out, a tax invoice would be required to be issued for 10 units and 50 units, as the case may be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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