High sea sales

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

Can you explain elaborately the position of high sea sales under the GST regime. Thanks iin advance.

[Ganeshan Kalyani]

In my view it is export of goods. Export can happen with payment of GST or without payment of GST.

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

As per sec 5(2) of CST act, when the importer import the goods instead of taking delivery from customs, they will transfer the title and the original buyer will file the bill of entry with the respective authority after paying the duty and fees. And subsequently the importer will issue the invoice to the buyer without charging any vat / CST to the buyer.

Whereas under GST act, what is the position of high sea sales.

Thanks in advance.

[vk agarwal]

It has been clarified in FAQs issued by CBEC that high seas sale will attract IGST only once that is at the time of filing of bill of entry on the value declared in the bill of entry. The value in the bill of entry would be value at which the goods have been purchased on high seas

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

I am also gone through the tweet Faq sI.no.97, it is not clear. Could you please elaborate on this. Thanks in advance.

[Kishan Barai]

Prior to GST, people opt for High Sea Sales to save VAT, now post GST, people can save dual IGST payment. Import of Goods will attract Basic + IGST and after importing it one sale to someone else and also charge GST in bill but when goods are sold on high sea, then no CGST/SGST or IGST could be charged on bill at the time of selling because goods are sold in sea i.e. international borders, not India but applicable import duty has to be paid.

AI Summary

High Sea Sales Under GST: IGST Applicable Once, Avoids Dual Payment; Import Duties Still Apply, No GST in International Waters. A discussion on the implications of high sea sales under the GST regime highlights various perspectives. One participant suggests that high sea sales are akin to exports, which can occur with or without GST payment. Another clarifies that under GST, high sea sales attract IGST only once, upon filing the bill of entry, based on the declared value. Prior to GST, high sea sales were used to avoid VAT, but now they help avoid dual IGST payment. Import duties still apply, but no GST is charged on sales conducted in international waters.