TMI BlogClarification in respect of goods sent/taken out of India for exhibition or on consignment basis for export promotionX X X X Extracts X X X X X X X X Extracts X X X X ..... r, in exercise of its powers conferred under section 168(1) of the West Bengal Goods and Services Tax Act, 2017 (hereinafter referred to as the WBGST Act ) hereby clarifies various issues in succeeding paragraphs. 3. As per section 7 of the WBGST Act, for any activity or transaction to be considered a supply, it must satisfy twin tests namely- (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 WBGST 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 WBGST Act. 5. Section 16 of the IGST Act deals with Zero rated supply . The provisions contained in the said section read as under: 16. (1) zero rated supply means any of the following supplies of goods or services or both, namely: (a) export of goods o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cified goods is covered under the provisions of sub-section (7) of section 31 of the WBGST Act read with rule 55 of West Bengal Goods Services Tax Rules, 2017 (hereinafter referred to as the WBGST Rules ). c) The specified goods shall be accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of the WBGST Rules. d) As clarified in paragraph 6 above, the activity of sending / taking specified goods out of India is not a zero-rated supply. That being the case, execution of a bond or LUT, as required under section 16 of the IGST Act, is not required. 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 sub-section (7) of section 31 of the WBGST Act. b) The supply would be deemed to have taken place, on the expiry of six months from the date of removal, if the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h 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 of a bond or LUT, if he is otherwise eligible for refund as per the provisions contained in sub-section (3) of section 54 the WBGST Act read with sub-rule (4) of rule 89 of the WBGST Rules, in respect of zero rated supply of goods after he has issued the tax invoice on the dates as has been clarified in answer to the question no. 4 above. It is further clarified that refund claim cannot be preferred under rule 96 of WBGST Rules as supply is taking place at a time after the goods have already been sent / taken out of India earlier. 8. The above position is explained by way of illustrations below: Illustrations: i) M/s ABC sends 100 units of specified goods out of India. The activity of merely 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GHT BACK / SOLD ABROAD Folio No./Reference No. Description of specified goods Quantity unit (Nos./grams/piece etc.) Value per unit Total value of the specified goods Date of removal from place of business (1) (2) (3) (4) (5) (6) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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