TaxTMI 
TaxTMI 
Clarification in respect of goods sent/taken out of India for exhibition or on consignment basis for export promotion.
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Baddi, Sirmour, Bilaspur, Hamirpur, Mandi. Kullu, Chamba, Kangra, Revenue Distt Nurpur and Una, H.P 4. The Asstt. Commissioner of State Taxes and Excise, Incharge Distt. Kinnour, H.P Dated Shimla-9 2nd Aug., 2019 Madam/Sir, Subject: Clarification in respect of goods sent/taken out of India for exhibition or on consignment basis for export promotion. Various doubts have been raised regarding procedure to be followed in respect of goods sent / taken out of India for exhibition or on consignment basis for export promotion. Such goods sent / taken out of India crystallise into exports, wholly or partly, only after a gap of certain period from the date they were physically sent / taken out of India. 2. The matter has bee....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Therefore, it can be concluded that only such 'supplies' which are either 'export' or are 'supply to SEZ unit/developer' would qualify as zero-rated supply. 6. It is, accordingly, clarified that the activity of sending / taking the goods out of India for exhibition or on consignment basis for export promotion, except when such activity satisfy the tests laid down in Schedule I of the HPGST Act (hereinafter referred to as the "specified goods"), do not constitute supply as the said activity does not fall within the scope of section 7 of the HPGST Act as there is no consideration at that point in time. Since such activity is not a supply, the same cannot be considered as 'Zero rated supply' as per the provisions contained in sect....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed in accordance with the provisions contained in rule 55 of the HPGST Rules. d) As clarified in paragraph 6 above, the activity of sending / taking specified goods out of India is not a zero-rated supply. That being the case, execution of a bond or LUT, as required under section 16 of the IGST Act, is not required. 3. When is the supply of specified goods sent / taken out of India said to take place? a) The specified goods sent / taken out of India are required to be either sold or brought back within the stipulated period of six months from the date of removal as per the provisions contained in sub-section (7) of section 31 of the HPGST Act. b) The supply would be deemed to have taken place, on the expiry of six months from....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd claims can be preferred in respect of specified goods sent / taken out of India but not brought back? a) As clarified in para 5 above, the activity of sending / taking specified goods out of India is not a zero-rated supply. That being the case, the sender of goods cannot prefer any refund claim when the specified goods are sent / taken out of India. b) It has further been clarified in answer to question no. 3 above that the supply would be deemed to have taken place: (i) on the date of expiry of six months from the date of removal, if the specified goods are neither sold nor brought back within the said period; or (ii) on the date of sale, in respect of such quantity of specified goods which have been sold abroad....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... months from the date of removal, a tax invoice would be required to be issued for entire 100 units of specified goods in accordance with the provisions contained in section 12 and section 31 of the HPGST Act read with rule 46 of the HPGST Rules within the time period stipulated under sub-section (7) of section 31 of the HPGST Act. ii) M/s ABC sends100 units of specified goods out of India. The activity of sending/taking such specified goods out of India is not a supply. No tax invoice is required to be issued in this case but the specified goods shall be accompanied with a delivery challan issued in accordance with the provisions contained in rule 55 of the HPGST Rules. If 10 units of specified goods are sold abroad say after one ....