9911796707
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 ..... 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 to ensure uniformity in the implementation of the provisions of the law the Commissioner, in exercise of its powers conferred under section 168(1) of the Bihar Goods and Services Tax Act, 2017 (hereinafter referred to as the "BGST Act") hereby clarifies various issues in succeeding paragraphs. 3. As per section 7 of the BGST 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 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 sen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onths 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 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 BGST Act, the sender shall issue a tax invoice in respect of such quantity of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 BGST Act read with sub-rule (4) of rule 89 of the BGST 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 BGST 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 ill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, at the time of each of such sale in accordance with the provisions contained in section 12 and section 31 of the BGST Act read with rule 46 of the BGST 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 BGST read with rule 46 of the BGST Rules. Further, M/s. ABC' may claim refund of accumulated input tax credit in accordance with the provisions contained in subsection (3) of section 54 of the B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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