RE-EXPORT OF IMPORTED GOODS UNDER GST

[Raghunandhaanan rvi]

Sir,

Goods imported into India without payment duty for calibration work and subsequent re-export.

My query is that :

Whether re-export should be under LUT/Bond or IGST Payment? If not, what is the other method for re-exporting these goods?

Whether any Notifications or Circulars issued by CBIC in this Regard?

Thanks in advance for your valuable guidance

[Rajagopalan Ranganathan]

Sir,

You are re-exporting the goods imported by you. Hence for all purposes, it is export made by you. Therefore you re-export either under LUT or on payment of IGST. At the time of import, you would have paid IGST. This IGST paid by you can be taken as credit provided you are registered under GST since a taxable person is one who has obtained registration under GST Act. If you re-export on payment of IGST then you can use this credit for payment of IGST on re-export. If you re-export under LUT, you can claim a refund of IGST paid at the time of import.

[Shilpi Jain]

For export to be a zero rated supply under gst, it has to be a supply as per section 16 of IGST Act. In your case the re export of goods is not in respect of a supply of goods.

it will not be a zero rated supply. There was also a circular under GST in this regard in the context of goods sent for exhibition which would not be a supply and thereby not treated as a zero its supply

[Shilpi Jain]

Once not a zero rated supply there is no question of doing it under lut or with payment of igst.

[KASTURI SETHI]

There is substance in the view/observation/interpretation of Madam Shilpi Jain. Hence I concur with her views.

[Raghunandhaanan rvi]

Dear Sir/ Madam

Thank you, Mr. Rajagopalan Sir, Ms. Shilpi mam and Mr. Kasturi Sir

for your response.

AI Summary

Zero-rated supply status: re-exported goods for calibration may not qualify, precluding LUT or IGST export relief.
Re-export of goods imported for calibration is contested: one position treats the re-export as an export by the importer allowing re-export under LUT or on payment of IGST, with import-paid IGST usable as input tax credit or refundable if re-exported under LUT; the contrary position holds that such re-export is not a supply under the IGST Act and therefore cannot be a zero-rated supply, precluding LUT or IGST-based export reliefs.