GST high seas

[Madhavan iyengar]

Experts view required

A Company has purchased material on high seas for ₹ 5 lacs and sold it on highseas in FY 2015-16 ( all highseas agreements are in place) ( the sales value was ₹ 15 lacs)

At time of raising invoice to customer for high seas sales in FY 2015-16 the value was mentioned as ₹ 10 lacs only

Now company in FY 2019-20 the Company intends to raise differential invoice / debit note of ₹ 5 lacs

Query: will this differential invoice of ₹ 5 lacs attract GST or will it be treated as non gst supply

The underlying transaction was a highseas sale transaction

AI Summary

High seas sale tax treatment: differential invoices may be non GST if Schedule III applies, but prior VAT liability can make them taxable.
Whether a post-sale differential invoice for a high seas sale attracts GST turns on characterisation: endorsements of title under Schedule III are treated neither as supply nor service and may fall outside GST, but transitional rules preserving tax liability where VAT or other indirect taxes were leviable can render the differential amount taxable; customs valuation and BOE under valuation may trigger customs duty and IGST consequences for the importer, while the high seas seller may not be required to charge GST.