TaxTMI 
TaxTMI 
XYZ is supplying goods by making 1) High Sea Sale 2) Importing, Storing in Customs bonded warehouse without paying import duty. These goods are cleared from customs bonded warehouse by the customer of XYZ by paying import duty. XYZ is simply giving Commercial Invoice without GST. In both the situation since GST is not paid by XYZ, whether XYZ is required to prepare ‘Bill of Supply’ or only ‘Commercial Invoice’ is sufficient?
Bill of Supply
17 Sep 2021 
5 Replies 
1747 Views Asked by
High sea sale treated as non supply, so commercial invoice suffices and no bill of supply is required.
High sea sales and sale of warehoused goods before clearance are treated as Schedule III non supply when a third party clears the imported goods by paying customs duties and taxes. In that situation the supplier who does not pay GST need not issue a tax invoice or bill of supply; a commercial invoice or authorization for the third party clearance suffices to document the transaction. (AI Summary)
High sea sales and sale of warehoused goods before clearance are treated as Schedule III non supply when a third party clears the imported goods by paying customs duties and taxes. In that situation the supplier who does not pay GST need not issue a tax invoice or bill of supply; a commercial invoice or authorization for the third party clearance suffices to document the transaction. (AI Summary)