GST Applicability

[Ethirajan Parthasarathy]

Director of a company dealing in artifacts often goes abroad for promoting sales.

During one such trip.

He purchased an art piece in abroad and immediately sold it in the same country to another person on behalf of his company.

He advised, during his visit abroad, some party about value of one artifact for which the party paid the company some amount as fee.

Whether GST is applicable on above two transactions.

[Shilpi Jain]

Sale of artifact would not be liable as the goods has not entered India. The service will be an export of service which can be done without payment of GST.

[KASTURI SETHI]

Dear Querist,

Also pl. go through the following:-

SCHEDULE III

[See Section 7]

ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES

[7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India

Both transactions are not liable to GST, being out of country.

[Vijay kumar]

1. Not liable to GST. It can't be export of goods also since "export of goods" as per Sn.2(5) of IGSTA'17 means taking goods from India to a place outside India.

2. Supplier is in India (since advise by Director is on behalf of the company) and receiver is abroad and hence place of supply in terms of Sn.13(2) of IGSTA'17 is outside India and hence is export of service. Not liable to GST.

[KASTURI SETHI]

Really Sh.Vijay Kumar has echoed my views with legal force and in a lucid way. Thanks.

[ULLAS PANDEY]

Respected Sir, Suppose a business of online gift website which takes orders from Indian customers who send gifts to their families/friends outside India. Here Merchant is taking orders and forwarding to the Supplier based out of India, also the delivery address is outside India but the order was placed by the customer located in India. Shall GST be levied here?

AI Summary

Export of service: supplier in India with place of supply abroad qualifies as export and is not taxable under GST. Sale of goods that do not enter India is not subject to GST because the transaction occurs entirely in the non-taxable territory and is treated under Schedule III as neither a supply. Advisory services provided by an Indian supplier on behalf of the company to a recipient abroad have their place of supply outside India and qualify as an export of service, allowing treatment without GST levy.