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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 ..... 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 Commissioner of State Tax, in exercise of its powers conferred under section 168(1) of the Haryana Goods and Services Tax Act, 2017 (hereinafter referred to as the "HGST Act") hereby clarifies various issues in succeeding paragraphs. 3. As per section 7 of the HGST 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 acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions 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. Whether any records are required to be maintained by registered person for sending / taking specified goods out of India? The registered person dealing in specified goods shall maintain a record of such goods as per the format at Annexure to this Circular. 2. What is the documentation required for sending / taking the specified goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 of such sale. 4. Whether invoice is required to be issued when the specified goods sent / taken out of India are not brought back, either fully or partially, within the stipulated period? a) When the specified goods sent / taken out of India have been sold fully or partially, within the stipulated period of six months, as laid down in sub-section (7) of section 31 of the HGST Act, the sender shall issue a tax invoice in respect of such quantity of specified goods which has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied 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 HGST Act read with sub-rule (4) of rule 89 of the HGST 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 HGST 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ending / taking out, a tax invoice would be required to be issued for 10 units and 50 units, as the case may be, at the time of each of such sale in accordance with the provisions contained in section 12 and section 31 of the HGST Act read with rule 46 of the HGST Rules. If the remaining 40 units are not brought back within the stipulated period of six months from the date of removal, a tax invoice would be required to be issued for 40 units in accordance with the provisions contained in section 12 and section 31 of the HGST Act read with rule 46 of the HGST Rules. Further, M/s ABC may claim refund of accumulated input tax credit in accordance with the provisions contained in sub-section (3) of section 54 of the HGST Act read with sub-rule ..... X X X X Extracts X X X X X X X X Extracts X X X X
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